July 10, 2003 - SACRAMENTO -- In what could be the foundation of a possible budget agreement, Senate Republicans offered Wednesday ideas for trimming about $2.7 billion in spending -- at least some of which have already been proposed by Gov. Gray Davis.

Ranging from the elimination of $1 million in funding to help counties pay for special elections to the reduction of nearly $1 billion in assistance for local government, Senate Republicans are in agreement with the Democratic governor on a wide variety of issues, according to an analysis.

Expectations are that the list of more than 100 budget amendments proposed by Senate Republicans could serve as the seeds of an agreement on state spending that could unlock the stalemate now two weeks old.

"What we have proposed is really a very modest decrease in state spending," said Sen. Tom McClintock, R-Thousand Oaks. "The bottom line is that with so many families and small businesses having to make much deeper cuts of their own spending this year -- for the state to resist having to make only a $4 billion cut in its spending is unconscionable."

California's record deficit of $38.2 billion is the nation's largest. But progress on solving the fiscal crisis has moved slowly during the last few weeks as partisan politics have predominated.

But some budget observers have hope the Senate Republicans' latest plan could change the debate because it includes ideas that have come from other sources, including Davis' May budget proposal and those from other Democrats, Republicans and outside sources.

H.D. Palmer, spokesman for the Senate Republican Caucus, said called the plan a "menu" from many authors, most of which has already been shared with Democratic leaders.

Still, some ideas may not prove popular with Democrats, including proposals to cut some environmental protection programs. For example, the Senate Republicans would kill the California Coastal Commission, which would save $10 million. They would also cut funding for the San Francisco Bay Conservation and Development Commission, saving about $3.5 million.

The Senate GOP plan would also renounce a variety of proposed fee increases, from air pollution permit fees to fish licenses and parking fees at parks. Combined, the elimination of the fee increases will add about $900 million to spending.

Like Davis, the Senate Republicans would divert money from urban redevelopment programs to schools, worth as much as $250 million.

Higher education would lose big dollars. The University of California would lose about $100 million for financial aid, research units and other programs.

Public health programs would also take a hit. Republicans would save $76 million by eliminating 12-month Medi-Cal eligibility for low-income children. There is also a provision for Medi-Cal patients to provide a co-payment for services, saving the state about $31 million.

Some optional benefits now provided by the state -- such as dental services -- would also be reduced by the Republicans, saving almost $700 million.