Compromise on Public Works Plan Still Elusive

With time running out, a compromise public works package -- the top political priority of Gov. Arnold Schwarzenegger and Democratic lawmakers this year -- continued to elude negotiators Monday.

They held out hope that a deal was still possible, though it was unclear when they would no longer be able to place an infrastructure proposal, which is expected to include significant state borrowing, on the June ballot for voter ratification. Friday was the official deadline; lawmakers can stretch that, as long as the state’s printer is able to create and distribute supplemental ballot pamphlets.

“We are very, very close,” said Assembly Speaker Fabian Nunez (D-Los Angeles).

But after talking through the weekend, Democrats and Republicans in the Assembly still had not bridged crucial disagreements over transportation funding and water storage projects. Another stumbling block was the technical details of how the proposal would be placed on the June 6 ballot.

Negotiations also include levee repairs, construction of affordable housing and new schools -- and how much the state should borrow to pay for these and other elements.

Although Democrats dominate both houses of the Legislature, Republican votes are needed to pass borrowing measures or any other measures that lawmakers intend for the ballot.

Assemblyman Rick Keene of Chico, a GOP negotiator, said Republicans had not received assurances that several new reservoirs that are high priorities for them would be built or that some of their other concerns would be addressed.

“Until we’re able to verify that those things are in the mix, we don’t have a deal,” he said.

In the state Senate, Democrats brought a $49-billion proposal to a vote early Saturday after a tempestuous and partisan debate, but it had no Republican support and did not pass.