But "I told the gov I saw no point in going to the floor only to prove what we all know: Reps won't go on a tax," Perata wrote.
While the governor's office says Perata will accept "budget reform" -- a proposal championed by the governor to constrain future state spending -- the Senate leader's e-mail is unenthusiastic on the subject.
"The gov still insists on a budget reform amendment as a condition of his signature," Perata wrote. "We'll see. As of yesterday morning, he was back to his most draconian version, which is not acceptable."
Exactly what financial maneuvers legislators could make to wipe out the state's red ink without taxes or borrowing is unclear. Democrats have vowed never to do it on cuts alone. And Republicans have not demonstrated how the state could cut its way into the black -- their budget proposal includes borrowing.
Likely alternatives involve tax loophole closures, accounting gimmicks and shifting of funds, most of which would not address the state's chronic financial problems.
There is talk in the Capitol of diverting bond money that voters approved for public works projects in order to balance the budget. Lawmakers supportive of such plans privately say the state would take only funds for projects not expected to get off the ground for years, and the money would be repaid in time to avoid disrupting construction.
Transportation advocates say all the bond money is needed now, and they have launched a campaign to stop lawmakers from raiding it.
Another option that legislators' staffs are exploring involves increasing the amount of state tax withheld from Californians' paychecks and refunding the extra withholdings after tax returns are filed. The state could collect large amounts of cash on the interest generated by such a method.
Analysts say such gimmicks are unlikely to go over well with voters.
"It would make the public hate them [legislators] even more," said Barbara O'Connor, director of the Institute for the Study of Politics and the Media at Cal State Sacramento. "Not that they have far to go."
A Field Poll released this week shows the Legislature's approval rating at 15%. And the California Teachers Assn., concerned that lawmakers could resort to borrowing, on Thursday released their own poll of 800 voters that found 67% "agree California has already borrowed too much and that the debt has contributed to the budget crisis."
Meanwhile, large sectors of state government have scaled back or halted operations amid the impasse. Health clinics and day-care centers have stopped paying staff; environmental projects have been put on hold; child-care facilities are shutting down.
Education officials say that districts have put off replacing as many as 40,000 teachers who retired after the last school year. Summer-school classes were canceled this year in most districts, and the state will not be able to provide the cash needed to pay for special education programs until a budget is passed.
Hopeful that he could pull together a deal this weekend, Perata wrote in his e-mail: "We go to the floor the moment we have mocked-up language ready."
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evan.halper@latimes.com
patrick.mcgreevy@latimes.com
