Democratic legislative leaders have cobbled together an $18 billion package of budget cuts and tax increases they contend can be passed without Republican support by a simple-majority vote.

The Senate and Assembly were scheduled to meet Wednesday night to vote on the complicated proposal, crafted secretly and meant to end weeks of fighting between the two parties.

But Gov. Arnold Schwarzenegger balked at details of the plan, prompting lengthy, closed-door negotiations between the governor and Democrats on Wednesday night.

Aaron McLear, Schwarzenegger's spokesman, said the governor does not support the proposal as unveiled.

"As the governor has said, we need a balanced proposal that includes legitimate cuts, real revenues and economic stimulus," McLear said, citing as examples the creation of public-private partnerships and changes enabling private companies to bid for both designing and building state projects.

At a hastily called press conference, Senate President Pro Tem Darrell Steinberg and Assembly Speaker Karen Bass said they were prepared to meet the governor "more than half way" on his demands for a meaningful economic stimulus package.

Steinberg said the Democratic plan would include accelerating the spending of $3 billion in public works bonds already approved by voters. He said they would also accommodate Schwarzenegger on the relaxation of some environmental regulations to speed up construction projects and rules that limit the use of private companies on public works projects.

"This is the only viable option before the people of California to make a dent in this deficit," Steinberg said.

But both leaders acknowledged they did not have a firm commitment from the governor for his signature.

The Democrats' new budget plan would raise taxes on gasoline, personal income and sales, cut state spending on schools, state colleges and universities and programs for the needy, and lower the state's payroll by $657 million.

By adroitly stitching together proposals that lower some taxes and raise others, Democratic legislators contended the package was "revenue-neutral" and thus could be passed by a simple majority rather than the constitutionally required two-thirds vote for tax increases.

The plan is meant to help bridge a projected $40 billion shortfall over 18 months, which threatens to leave the state unable to pay all its bills in February.

If approved by the Legislature and signed by Schwarzenegger, it could soften the impacts of the state's decision Wednesday to halt funds for thousands of public works projects.

"We're committed to getting the job done with or without our Republican colleagues," Bass said.

Even if the governor goes along, GOP leaders said they expect the maneuver to be the subject of a legal battle.

"Obviously, I and my colleagues - and I'm sure a lot of other people in the state - will believe that what they've done is illegal," said Senate Republican leader Dave Cogdill of Modesto.

In addition to not wanting to spend their Christmas holidays trying to patch the projected shortfall, legislators are trying to avert a much bigger problem: the state running out of money.

State financial officials have warned that California is headed for disaster unless there is action quickly to close at least part of the deficit.

Democratic legislators contended their plan would do that by increasing tax revenues by the beginning of February and ratcheting down the bills the state will face by cutting program spending.

The $9.3 billion in tax provisions include a 1 / 2-cent increase in the state portion of the sales tax and a 1 / 4-cent hike in the local part of the tax; a 2.5 percent surcharge on personal income taxes starting in 2009; elimination of 26 cents per gallon in current gasoline, replaced by 39 cents per gallon in fees, a 13-cents-per-gallon net gain; a new "severance tax" on oil production; and a new 3 percent income tax withholding requirement for payments made to independent contractors.

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