By David Bailey

MINNEAPOLIS (Reuters) - Minnesota Governor Mark Dayton said on Wednesday he would propose next week higher taxes on wealthy state residents to help address a projected $6.2 billion budget deficit, and urged further investments to create jobs.

In his first "state of the state" address, the Democratic governor also asked business leaders to give his administration two years to turn around Minnesota's budget without "savaging essential public services."

Dayton asked for bipartisan support from the Republican-controlled legislature to resolve the state's fiscal crisis and urged lawmakers to pledge there would be no state government shutdown due to a budget impasse.

"We were left a horrendous fiscal mess, a decade of economic decline, and state agencies poorly managed," Dayton said in a speech to legislators. "All of that must be turned around. All of it will be turned around, but not by tomorrow, and not entirely by the end of this legislative session."

In December, the state estimated its fiscal 2012-2013 biennium shortfall at nearly $6.2 billion.

The Minnesota governor's remarks came as states across the country grapple with deficits after the U.S. recession. California Governor Jerry Brown has sought to extend tax increases that are due to expire this year and to back cuts.

Illinois raised income and corporate tax rates temporarily to meet budget needs. However, Texas Governor Rick Perry on Tuesday opposed tax increases or dipping into the state's rainy day fund to cover a budget gap.

Minnesota House Speaker Kurt Zellers said in a Republican response to Dayton's speech that the state of Minnesota was "very strong and it is going to get even stronger by focusing on our citizens and our private sector economy."

"Take away all of the fancy words, investment and reinvestment, it is tax-and-spend," Zellers said. "It's more government programs, it's more government spending and raising taxes."

Senate Majority Leader Amy Koch said Dayton's income tax proposal had no support from Republicans.

Dayton, who proposed a $1 billion bonding bill on January 31 for infrastructure projects, also asked lawmakers to consider creating a transportation finance authority to support improvements.

He asked lawmakers to support increased state education funding for kindergarten through high school, including giving all parents the option of affordable all-day kindergarten.

(Reporting by David Bailey; Editing by Jerry Norton)