Darrell Steinberg

State Senate President Darrell Steinberg discusses with reporters the provisions of the proposed state budget deal. (Rich Pedroncelli / Associated Press / July 21, 2009)

Less than 24 hours after Gov. Arnold Schwarzenegger and legislative leaders announced a plan to close California's massive budget deficit, Los Angeles County officials moved to sue the state, a union for government workers said it might strike, and Republicans threatened to back out of the deal over a provision to cut the number of prison inmates by 27,000.

The governor largely stayed out of sight, except for posting a brief video on Twitter in which he played with a big knife and talked about autographing state property to be sold at auction to raise extra money. Legislative leaders, meanwhile, began to brief their members, and staff started compiling a formal proposal in anticipation of a vote that could occur Thursday.

But as those preparations went ahead, the leader of the Republicans in the state Assembly reacted angrily to news posted on The Times' website about the deal's effect on prisons. Under the plan, some inmates would be allowed to finish their sentences on home detention, new incentives would be created for completion of rehabilitation programs, and parole supervision would be scaled back for the least serious offenders. The prisons now hold 168,000 inmates.

Soon after that news broke, Assembly GOP leader Sam Blakeslee sent members an e-mail with the heading, "Budget Double-Cross?" Blakeslee suggested that he had not known about the plans and said Republicans would not vote for it.

The budget deal needs a two-thirds vote in each house of the Legislature, meaning that it cannot pass without some Republican support. And with the left and the right of the political spectrum unhappy over different items -- and many legislators still in the dark about what, exactly, they will be asked to vote on -- the prospects remained uncertain.

Until that uncertainty ends, aides to state Controller John Chiang said his office would continue to send IOUs to California residents and businesses.

The IOUs, totaling $724.7 million to date, started going out earlier this month, a highly visible symptom of the financial uncertainty that has pushed the state's credit rating close to junk status.

As rank-and-file lawmakers, interest groups and California residents alike began to digest the agreement announced Monday evening, many found much to dislike.

The deal would close the state's $26.3-billion deficit with deep cuts to schools and programs that serve the elderly, poor and disabled; borrow money and take funds from local government; and slice law enforcement funding.

"It's a budget everyone will hate," Sen. Abel Maldonado (R-Santa Maria) said early Tuesday. "It's a budget that has gimmicks. But I think it will pass."

Some of the most heated reaction came from city and county government officials. The plan would seize $4.7 billion in local funds through a variety of measures, essentially shifting part of the state's deficit to the local governments. The prospect of losing $313 million in redevelopment funds and $109 million in gasoline taxes prompted the lawsuit threat from Los Angeles County supervisors, a move other local governments are expected to echo.

And state worker unions were angry about the deal's plan to continue three unpaid furlough days a month, which amounts to about a 14% pay cut. The largest of the unions, Service Employees International Union Local 1000, has mailed out strike authorization ballots to its 95,000 members.

"Making state employees pay what amounts to a 15% furlough tax is just plain wrong," said union President Yvonne Walker. "We'll fight in the courts, in the Legislature and in the workplace to have it cut back."

But it was the effect that the deal would have on prisons that seemed to offer the most potential for trouble.

Neither the governor's office nor the Legislature had publicly released details of the prison portion of the agreement. When they were revealed, Blakeslee (R-San Luis Obispo) insisted that he had not agreed to them.

He had agreed to a deal including prison cuts, Blakeslee wrote in a seemingly hurried e-mail to the GOP caucus, but his understanding was that the details were supposed to be ironed out in August.

"I have called and personally told both Karen and Darrell that their will be no republican votes for any portion of the budget if they allow such a bill to be part of the package," Blakeslee wrote, referring to Senate leader Darrell Steinberg (D-Sacramento) and Assembly Speaker Karen Bass (D-Los Angeles).

Blakeslee's spokeswoman did not respond to questions about whether he would break the deal.

By contrast, the Republican leader in the state Senate, Dennis Hollingsworth of Murrieta, said in an interview that he continues to support the budget deal.