SACRAMENTO — Democratic leaders emerged from late-night budget negotiations Tuesday to announce they were closing in on a final agreement on how to address the state's $26.3-billion deficit.
They said they planned to complete their work by morning.
"We are prepared to be here all night," said Assembly Speaker Karen Bass (D-Los Angeles). "I don't think there is anything that would make negotiations shut down at this point."
Senate leader Darrell Steinberg (D-Sacramento) said, "Everyone is highly motivated to get this done and get this done tonight."
The legislative leaders refused to discuss details of the negotiations.
Gov. Arnold Schwarzenegger did not address reporters camped outside his office, but his staff cautioned that although talks were progressing, predictions of an impending deal might be premature.
"There are still some very difficult decisions to make," said Schwarzenegger spokesman Aaron McLear.
"The governor has said that as soon as the leaders are ready to make the cuts necessary to balance our budget, we could be done very quickly. There are still some very difficult decisions to make."