SACRAMENTO — Legislative leaders and Gov. Arnold Schwarzenegger were unable to reach a final budget deal Sunday but emerged from private talks expressing confidence that an agreement could be in place as soon as Tuesday.
Negotiations had stalled Saturday after Republicans warned that they would continue to block a Democratic compromise spending plan they said contained too much spending.
By Sunday, however, the two sides said they were near agreement on ways to whittle down the Democrats' proposed $116.6-billion budget without cutting too deeply into healthcare and social service programs that Democrats vowed to protect.
Legislative leaders said they would have their staffs review the proposals one last time today before taking their plan to the governor Tuesday.
"Everybody had something to offer," Assembly Speaker Fabian Nunez (D-Los Angeles) said of Sunday's meeting.
"People are in the mood to bring finality to this.... We feel good about that."
