Ground zero in the state's bitter budget standoff has become the calendar.

Mark Saturday, Aug. 16.

Republicans who vow not to pass a new state budget unless it contains long-term fixes to chronic budgeting problems see time running out.

Voters would need to approve any strong spending restraints as constitutional amendments – and Aug. 16 is the deadline set by California Secretary of State Debra Bowen for reaching the November ballot.

Privately, lawmakers say there may be wiggle room to the deadline, perhaps until the end of the month, but all sides agree that time is short.

Gov. Arnold Schwarzenegger has insisted upon long-term changes as part of any budget deal.

"There will be a total meltdown in negotiations if we pass the deadline to get budget reform on the ballot," spokesman Aaron McLear said.

Republicans have complained for years that binding restraints are needed to cure overspending in boom years that leaves massive red ink when the economy nose-dives.

Schwarzenegger proposed a temporary 1-cent increase in the sales tax last week in exchange for two long-term fixes:

• Authority for the governor to cut state operations budgets by up to 7 percent and to suspend state cost-of-living adjustments when a midyear revenue shortfall occurs.

• Creation of a "rainy day" fund to consist initially of at least 3 percent of state general fund revenues. In years when state revenues exceed projections by 5 percent, the windfall would flow into the new fund after schools received their share.

Money could be withdrawn from the rainy day fund only in response to an economic downturn, only for limited purposes and only after a two-thirds vote of the Legislature.

Republicans applaud the two proposals but say even more is needed: a spending cap to restrict annual expenditures through a formula tied to growth in population and inflation.

"The most important thing we could do for California is to pass a spending cap – and Democrats refuse to even talk about it," Assembly Republican leader Mike Villines said.

Republican lawmakers said Democrats may be playing games with budget talks, running out the clock, in an attempt to sidestep GOP demands.

"I've heard people say it could be Armageddon," said Senate GOP leader Dave Cogdill when asked how his party would react to a strategic Democratic stall.

Villines said his members are willing to be flexible, but not steamrolled, in budget talks.

"The point is, without budget reform, I don't see how we close out on this budget," he said.

How will Republicans react if the deadline passes?

"We'll have to cross that bridge when we get there," Villines said.

One possibility would be for state officials to strike a deal this year and call a special election to vote on it next year.

Doing so would cost tens of millions of dollars, however, and sever any ties between a new state spending plan and budget reform.

Senate President Pro Tem Don Perata and Assembly Speaker Karen Bass, both Democrats, contend that budget talks have been slowed by the GOP's failure to provide a detailed plan for curing the $15.2 billion budget deficit.

"There's no stalling," said Lynda Gledhill, Perata's spokeswoman.

"We have been and continue to work very hard to craft a budget compromise."

"We've had a budget (proposed) for nearly two months, the Republicans have put nothing on the table," said Steven Maviglio, Bass' spokesman.

"Who's stalling?"

Legislators have another reason to watch the calendar as well.

Many hope to strike a budget deal in time to attend their party's national convention – Aug. 25-28 for Democrats and Sept. 1-4 for Republicans.

Neither party can dominate budget talks because a two-thirds vote of each legislative house is needed to pass a budget.

"They're both going to have to swallow something they don't like at all in order to get something they want," said Dan Schnur, new director of the Jesse M. Unruh Institute of Politics at the University of Southern California and a former GOP strategist.

Democrats say they are willing to discuss a rainy day fund, but oppose granting midyear budget-cutting authority, or a state spending cap.

Bass said budget crises can force cuts in pivotal services, and the state needs flexibility to restore them.

"I'm concerned about any formula that is going to be an additional way that our hands are tied," she said. "I don't want to see that happen."

But Assemblyman Roger Niello, R-Fair Oaks, said that Bass' logic is "exactly backward."

"What we have to do is something where we will limit our spending growth exactly when times are strong, so that we create a real reserve (to avoid) huge tax increases when times are bad."

Neither Democrats nor Republicans are warm to raising the sales tax.

Democrats want a tax increase targeting corporations or the wealthy. They feel a sales tax hike would hit low income residents hardest.

Cogdill said that raising sales taxes could devastate businesses.

"This economy will not survive more taxes," he said. "It's a non-starter for us."

Call Jim Sanders, Bee Capitol Bureau, (916) 326-5538.