Accord Sought on Works Measure

Schwarzenegger and Democratic leaders are closing in on the parameters of a plan that would involve roughly $20 billion less in borrowing than the $68 billion the governor proposed in January, according to lawmakers and senior aides in the Legislature and the governor's office. But it would still pay for road expansion and reconstruction throughout the state and fortifying California's levees.

Negotiators say the governor has agreed to include money for affordable housing and more funds for public transit -- both priorities for urban districts that are the largest Democratic constituencies.

Several potential deal breakers remain unresolved. But "I think we have about an 80% chance of getting something through this week," said Sen. Tom Torlakson (D-Antioch). "The public is expecting us to act, and we should act."

One of the governor's original priorities -- directing $9 billion toward expanding local jails and renovating courthouses -- has been put on a back burner. Also, the negotiations are focusing on a less expansive vision of the building plan than Schwarzenegger first offered. Instead of stretching through five elections to 2014, the bond measures needed to pay for it would be put before voters by 2008 or 2010.

The Democrats, who have a majority in the Legislature, have agreed with Schwarzenegger's plan for borrowing money to strengthen the state's levees.

In addition, the Democrats have given up on trying to allot money to retrofit old hospital buildings so they can survive earthquakes -- a concern of one of the party's political partners, the Service Employees International Union, which represents healthcare workers.

The biggest impediment to a deal may be the GOP minority in the Assembly, which so far has received no major concessions from the Democrats. Those Republicans have been pressing for looser environmental reviews of new construction, more than $1 billion to build reservoirs in agricultural areas, and having some portion of the construction be paid for directly by taxpayers instead of through borrowing.

"We've got a long ways to move before we're ready," said Assemblyman Rick Keene (R-Chico), the chief negotiator for his caucus. "We're saying let's do this right. We're talking about one of the biggest investments in infrastructure in state history."