For only the second time in 34 years, state lawmakers have reached September without passing a budget.

The Legislature conducted floor votes Tuesday on competing Democratic and Republican plans, both of which fell short mostly along party lines. The exercise served as a rhetorical workout but gave little indication that lawmakers are close to a compromise.

In about three hours of debate, lawmakers confirmed what has been known for months – that the two parties remain entrenched in their positions on taxes and spending cuts.

Nonetheless, Senate President Pro Tem Darrell Steinberg, D-Sacramento, said afterward that the discussion had been "cathartic" because lawmakers had a chance to explain where they stood.

Republicans criticized Democrats for waiting until the final day of the legislative session to hold the year's first floor vote on a full spending plan. They said the day's action would accomplish little.

"So why they put it up for a vote in the first place no one knows," said Gov. Arnold Schwarzenegger at a San Francisco Chamber of Commerce event, according to a transcript. "But Senator Steinberg insisted that he doesn't want to hear the word drill, that it is not a drill … So let's call it Kabuki, whatever you want to call it, but that's what it is."

Steinberg said legislative leaders waited until now because they were previously concerned about disrupting the flow of private budget talks.

"If you go too early with the public debate, there's the risk that you're going to harm what can be delicate negotiations," Steinberg said. "In this instance now, we're to a point where certainly there's no harm and some value to airing what everybody knows to be the difference, but in a public and in a civil way."

Democrats and Republicans essentially disagree over $4 billion to $5 billion in solutions, roughly one-quarter of the $19 billion deficit. Schwarzenegger also has demanded lower pensions for future state workers, as well as a permanent change that would restrict future state spending.

To bridge the last part of the deficit, Democrats have proposed three major tax ideas. That includes a $2.1 billion delay of corporate tax benefits; a $1.8 billion tax swap that would alter taxes on income, sales and vehicles; and a tax on oil production that would raise $600 million.

Approving those taxes would spare the state's welfare-to-work program, provide state-subsidized child care to low-income families and give schools an additional $323 per pupil. The taxes also would avoid higher co-pays and stricter restrictions on doctor visits for Medi-Cal patients.

"This is a moment for us to put on the record what we think is the best approach for California," said Assembly Speaker John A. Pérez, D-Los Angeles.

Steinberg said he does not want higher taxes, but that they are required to avoid devastating cuts. Sen. Bob Dutton, R-Rancho Cucamonga, said he took no pleasure in eliminating programs, but that higher taxes are not an option in a down economy. "I hate all these plans. I didn't come here to make cuts."

The Republican proposal would bridge the last part of the budget deficit by eliminating welfare-to-work, as well as child care for all but preschool students. It would cut deeply into in-home care for low-income elderly and disabled residents and rely on the aforementioned Medi-Cal changes. Republicans also proposed significant reductions in state worker pay.

Republicans blamed Democrats for not accepting smaller reductions to welfare and In-Home Supportive Services earlier this year. They said their bottom line is that Californians cannot afford higher taxes.

"The public expects that we will not take more tax dollars out of their pocket," said Assembly Republican leader Martin Garrick, R-Solana Beach.

Both houses will hold a joint informational hearing today to discuss a Schwarzenegger idea to apply the state sales tax to services. The governor himself will hold a news conference on the budget.

Legislative leaders are expected to resume closed-door budget talks within days, although no sessions have been scheduled. Schwarzenegger plans to leave for a six-day trade mission in Asia on Sept. 9, budget or no budget.

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Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548. Jim Sanders of The Bee Capitol Bureau contributed to this report.

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