Stalemate Over State Budget Continues : Finances: Lawmakers trade insults. Deukmejian insists no tax increase is needed. The state is left without a budget for the 11th day.

Progress toward a state budget agreement seemed to break down further Wednesday, with lawmakers trading insults, Gov. George Deukmejian expressing displeasure at a Senate-passed $50-billion state budget and one key lawmaker saying further negotiations with other legislators seemed pointless.

“I’m ready to go home,” said Assemblyman John Vasconcellos (D-Santa Clara), chairman of the Assembly Ways and Means Committee, as fruitless deliberations left California without a budget for the 11th day.

The absence of progress brought the machinery of state government ever closer to the point when checks will stop going out to welfare recipients, state employees and contractors who work for the state.

Until a budget is approved, the state controller’s office lacks the legal authority to issue checks. And state Treasurer Tom Hayes warned the governor and lawmakers Wednesday that unless a budget is signed by July 17, delays will begin costing the state more because of higher interest costs.

Lawmakers in the Senate had hoped that by passing a budget late Tuesday night, they would--as one put it--”get the ball rolling” toward an agreement. Instead, feelings just seemed to harden.

Representative of the mood in the Assembly were remarks, reported by the San Francisco Chronicle, between Assemblyman William P. Baker (R-Danville) and Assembly Speaker Willie Brown (D-San Francisco) over the Senate-approved budget:

“They left us with a bag of dog doo on our doorstep, lit it on fire, rang the doorbell and ran away,” Baker said. Brown replied, “And we will not take it out of the bag. We will simply return it to its owners in its original form.”

Those and other comments left Senate President Pro Tem David A. Roberti (D-Los Angeles) in a funk, and he lashed out at Deukmejian, state Supt. of Public Instruction Bill Honig and his critics in the Assembly.

Roberti said Deukmejian, with his intractable stance against tax increases, is ignoring the financial strains created by waves of immigrants whose children are crowding into classrooms and whose family needs are straining public health and social services.

“He doesn’t see the change in California,” Roberti said of Deukmejian, adding that if the governor took a close look at Hollywood he would find that “it’s not a recording-film center; it’s Ellis Island.”

As for Honig, Roberti accused him of being an ingrate for criticizing the Senate budget after Democrats fought off efforts by Deukmejian and Republicans to cut deeply into school funding. In the Roberti-backed budget, spending on just about everything but public schools was reduced.

In his own news conference, Honig said that the Senate budget went “too far” by cutting back $1.7 billion in proposed spending.

Roberti, saying he was “a little bit ticked,” declared: “They are not living on the same planet that the rest of us are. . . . If they are not happy with what we did, what in the world do they want? Do we have to close the county hospitals and put the money in schools? Do we have to close all the trauma centers and put (the money) in teachers’ salaries?”

Regarding his critics in the Assembly, Roberti challenged them to, in effect, put a budget where their mouths are. “Now is the time for compromise, not rhetoric,” he said.

Assembly Speaker Pro Tem Mike Roos (D-Los Angeles) said the bitter exchanges, coming at a point when talks should be progressing toward a solution, made the current budget crisis the worst he’s seen in his 13 years in the Legislature.

“It shows how desperate the situation is and how deadlocked things truly are,” Roos said.

Meanwhile, as of today, the state has missed $627 million in payments to local governments, in-home care workers and doctors, hospitals and others who care for the poor under the Medi-Cal program. Also today, an additional $588 million in checks are to be held up including a $139-million payment to counties to meet obligations to welfare recipients.

Times staff writer Max Boot contributed to this story.

SENATE BUDGET-BALANCING PLAN

The budget-balancing plan passed by the state Senate includes $1.3 billion in new taxes and fees and $1.73 billion in program cuts. Under the plan, now being considered by the Assembly, Gov. George Deukmejian would be expected to cut an additional $550 million to provide a 3% emergency reserve. Here are the highlights: NEW TAXES: $1.193 BILLION

Tax conformity--$623 million. Conform the California Tax Code to changes in federal law from 1987 to 1989, mostly applying to business and investment income.

Capital gains on real estate purchases--$43 million. Require buyers to withhold capital gains taxes when they purchase California real estate from out-of-state owners. Would not apply to sale of a home used as a primary residence.

Withholding of taxes from independent contractors--$220 million. Require businesses to withhold California income tax when they pay independent contractors more than $600 a year for personal services.

Out-of-state vehicles--$100 million. Establish a $300 fee on out-of-state vehicles registered for the first time in California.

Extend the 6% sales tax--$207 million. Apply the sales tax to candy and snack food, the rental of motion pictures to theaters and television stations, newspapers and periodicals, and printed advertising, such as catalogues and Yellow Pages directories. FEES: $93 MILLION

University of California and California State University--$21.7 million. Raise annual resident student fees by $148 at UC and $72 at Cal State and increase non-resident tuition by $500 at both institutions.

State parks--$16 million. Raise campground and day-use fees by an average of 40%.

Fire protection--$22 million. Charge a fee of $25 per residence on homes protected by the California Department of Forestry.

Child care--$4.3 million. Charge a $25-per-year licensing fee on family child-care operations and a $300 annual fee on professional day-care centers to offset the cost of regulation.

Other miscellaneous fee increases, $29 million. PROGRAM CUTS: $1.73 BILLION

Suspend cost-of-living increases--$326 million. Freeze welfare grants, Medi-Cal rates and grants to the aged, blind and disabled at current levels.

Health programs--$147 million. Cut Medi-Cal and local health programs and shift some drug and alcohol programs to federal funds.

Local government--$277 million. Freeze at current level payments to support trial courts and remove state requirements for counties and cities to perform certain functions.

Higher education--$150 million. Cut California State University funding $73 million and the University of California $70 million and replace $7 million in state funding for the Maritime Academy with fees on the shipping industry.

Social services--$103 million. Cut the workfare program by $95 million and the homeless assistance program by $5 million and shift the Job Service Center to federal funding.

Public safety--$166 million. Increase inmate-to-guard ratios in state prisons, require an unspecified cut of $20 million in the prison program and cut the youth and adult corrections agency.

Miscellaneous--$274 million. Hold down spending on tourism marketing and the Arts Council, eliminate the agriculture promotion program and cancel planned increase for the Office of Emergency Services.

Program delays and funding shifts--$287 million. Includes delaying final Medi-Cal payments of the current fiscal year until the following year.