As he compared political divisions in the state Capitol to feuds in Northern Ireland, Gov. Arnold Schwarzenegger said Wednesday he hopes Democrats and Republicans reach a budget accord in three weeks despite long-standing disputes.

The Republican governor said negotiations over the state's dismal budget mess should focus on the "four-legged" proposal his administration unveiled last week, rather than the majority-vote plan Democrats and Schwarzenegger have discussed since mid-December.

Without an immediate fix to the state's estimated $40 billion budget deficit, California could run out of cash next month. State finance officials warn that the state would have to give IOUs to state vendors and elected officials, as well as delay refunds for taxpayers.

Schwarzenegger on Tuesday vetoed an $18 billion partial solution that Democrats passed last month, tabling that proposal. The governor wants Republican and Democratic leaders to renew discussions together, something they abandoned a month ago when Democrats believed agreement with GOP leaders was impossible and pursued a tax increase strategy that worked around them.

The governor said he took inspiration from Northern Ireland, where groups reached a peace accord after years of terrorist bombings.

"As you know when the Irish (Catholics) and Protestants negotiated in Ireland, they also had that same dialogue over and over: They negotiated for years, why do you think they will come to an agreement now?" Schwarzenegger said. "But eventually something good does happen."

Senate President Pro Tem Darrell Steinberg, D-Sacramento, said Wednesday that the majority-vote plan stands as the only viable way to immediately cut the deficit and avoid a cash crisis. He remained open to negotiating with Republicans but said it was Schwarzenegger's responsibility to seek their votes.

"He believes that he can convince the Republicans to vote for revenue increases, given that we're now pretty much at the brink," Steinberg told The Bee's Capitol Bureau. "And if that's the case, great. Then we'll resume a different kind of negotiation. If it's not true, then I expect we'll be right back to our $17 billion-plus proposal and try to close that out."

Assembly Republican Leader Mike Villines, of Clovis, said he's open to discussing tax increases if Democrats first entertain a permanent cap on state spending, an economic stimulus package and waste-cutting measures.

"We have never ruled out revenues," he said. "We've always said we think there are ways to do revenues that are not tax increases. But regardless, we'll have that conversation as long as we know we're doing all the pieces of the puzzle."

Villines added that while taxes are a last resort, he would prefer a broad approach rather than targeted taxes proposed by Democrats. He would not specify which taxes he meant, but business groups have resisted Democrats' plan to raise income taxes on the wealthy.

"If you're going to raise taxes in California, it should be on something that would be fair and across the board, for everybody, in one fell swoop," Villines said. "It would not be picking winners and losers."

Schwarzenegger plans to call Republicans and Democrats together for a "Big 5" meeting today. He will focus on the budget proposal he put forth last week for the rest of the current fiscal year and the one that starts July 1.

He likened his plan to "a sturdy four-legged stool":

• Reduce spending by $16.5 billion, with most of the cuts coming in education programs; prisons; and services to the elderly, poor and disabled.

• Increase revenue by $14.8 billion, most of it coming from a 1.5-cent hike in the sales tax for three years, and borrow $10.3 billion.

• Create jobs by relaxing environmental regulations to accelerate public works projects.

• Make state government more efficient by eliminating or consolidating redundant or unnecessary programs.

Clearly frustrated by his inability to reach a deal with Democratic legislative leaders over the holidays, the governor placed responsibility for the failure squarely on the shoulders of state lawmakers.

"It's not enough for Republicans just to say that 'we want to see the cuts before we even talk about revenues.' And it's not enough for the Democrats to say, 'We want to see first the extra revenues before we talk about cuts.' That's not enough. Our state needs both."

Schwarzenegger contended that Democratic legislative leaders refused to buck key support groups such as public employee unions during the negotiations over the Democrats' plan.

A state appeals court Wednesday tossed out a lawsuit filed one day earlier by Republican legislators and anti-tax groups in an attempt to block Democratic majority-vote tax bills.

The court ruled that the plaintiffs had no standing because the bills were never enacted.

Call Kevin Yamamura, Bee Capitol Bureau, (916) 326-5548.