INDIANAPOLIS — Gov. Mitch Daniels said Friday he was prepared to keep essential services such as public safety running if lawmakers do not pass a budget by midnight Tuesday, but warned that most of state government would shut down.

Daniels said he would use emergency powers to keep state police and prisons operating, and public assistance - including unemployment insurance - would keep being distributed to those already eligible. The Indiana National Guard, state Department of Homeland Security and health officials would be available on standby.

But he said state parks would not be open and Bureau of Motor Vehicle branches and other state offices would close, as would casinos and the lottery because they are regulated by the state. Most of the state's 30,900 employees would be furloughed.

Daniels, a Republican, said the blame for a shutdown would rest solely with Democratic leaders who control the House because they have not budged on a budget he said would destroy the state's finances and force a future tax increase.

The governor said with the deadline looming for lawmakers to pass either a budget or a stopgap funding measure, he felt compelled to speak out.

“I did not want to wait until 24 hours before this remote possibility could occur to let the public know what the consequences would be, and that we're ready if forced - and I stress forced - to do this,” he said at a news conference.

House Speaker Patrick Bauer, D-South Bend, issued a statement saying he welcomed the governor back to the Statehouse after his travels. Daniels had made a two-day tour of the state this week during which he accused House Democratic leaders of trying to “blackmail the state into bankruptcy,” and urged them to allow a vote on what he has called a compromise budget bill passed by the Republican-ruled Senate.

Bauer and other House Democrats say that two-year, $28.5 billion bill would result in devastating cuts to many school districts. Unlike a one-year, $14.5 billion budget passed by House Democrats, the Senate plan would not ensure that all districts get as much or money next year as they got this year.

“Now is not the time to resort to blackmail and threats of what could happen,” Bauer said.