Saying California is "headed toward a financial Armageddon," Gov. Arnold Schwarzenegger blistered lawmakers on Wednesday as administration officials said the state's two-year budget hole has grown to about $40 billion.

With the economy reeling and revenues plummeting, previous projections of $11.2 billion in red ink during the current year have risen to $14.8 billion in the $100 billion general fund – and roughly $25 billion in 2009-10.

"When you have a crisis, the most important thing is to make a decision – and the worst thing is not to make a decision," Schwarzenegger said, urging the Legislature to move quickly.

Schwarzenegger accused lawmakers of "playing chicken" in negotiations, threatening to plunge state government into a financial abyss while gambling on who will blink.

"That's a very dangerous game," he said.

Assembly Majority Leader Alberto Torrico announced separately Wednesday that he will push for an around-the-clock lockdown of the Assembly during Christmas week.

"That'll get it done," the Newark Democrat said of forcing lawmakers to stay inside the Capitol until they reach consensus, a tactic tried successfully in July 2003 by then-Assembly Speaker Herb Wesson during a budget standoff.

California's coffers are emptying so fast that the state's top fiscal officials say the plug must be pulled on $5 billion in public works projects next week, and by February or March, the state will not be able to pay all its bills.

Schwarzenegger unveiled a poster-board display, later placed in a glass case outside his Capitol office, that tracks the state's rising shortfall second by second since July 1.

With the state's new current-year deficit now projected to reach $14.8 billion by June 30, the sign tallies up $470 per second, $28,000 per minute, $40 million per day – more than a billion dollars per month.

Assembly Speaker Karen Bass, urging Schwarzenegger to muscle GOP legislators, said "gimmicks aren't going to keep transportation projects moving, let schools stay open or provide public safety."

Schwarzenegger and legislative Democrats have pushed to bridge the massive budget gap by roughly equal amounts of budget cuts and tax increases.

Republicans adamantly have resisted tax hikes, saying they will unveil a proposal Monday to narrow the gap by cutting about $11 billion in spending.

Responding to complaints of legislative inaction, Assembly Democrats punched back at Schwarzenegger for failure to secure any GOP votes for his budget-cutting plan.

"The governor has to deliver as well," said Bass, D-Los Angeles.

Torrico accused the governor of taking a "cheap shot" by playing the "blame game."

"He's pretending to lead a parade, but there's no band behind him," Torrico said.

Senate Republican leader Dave Cogdill said that "bullying the Legislature" won't prod Republicans to vote for tax hikes that they are convinced would worsen the state's economy.

"Raising taxes doesn't solve the underlying problem of California's budget, which is, the state spends more than it takes in," Cogdill said.

Schwarzenegger specifically criticized comments made to to The Bee by Assembly Republican leader Mike Villines, who said that his members will not consider revenue increases until a deal is struck on a strict spending cap, permanent cuts, and an economic stimulus package of regulatory and labor law changes.

"You can't go with a list like this and say, 'If you commit to those things and if you're willing to make those changes, then we are willing to talk about revenue increases,' " Schwarzenegger said.

"That is not the way you negotiate," he added. "You have to say, 'This is what it takes – and then I'm ready to increase the revenues, and I will get my people upstairs to vote for a revenue increase.' "

Republicans have not always been well-prepared with specific proposals for closed-door talks, Schwarzenegger said.

Senate President Pro Tem Darrell Steinberg also criticized Villines' strategy of forcing concessions on wide-ranging demands before addressing the need for new revenue.

"It's time to get serious," Steinberg said. "The time for games is over."

Villines, who was in Washington on Wednesday for what he has described as business meetings and a personal engagement, said in a written statement that Republicans have been "fully prepared and fully engaged" in negotiations.

"Neither Democrats nor the governor should have any doubt where we stand, nor our willingness to sit down and try to work through our differences any time," Villines said.

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