The $38 billion California deficit is unprecedented. If we laid off every state worker, and closed every prison, University of California and California State University campus, and completely eliminated state support for health insurance for the working poor, still there would be a $10 billion shortfall. Without a few Republican votes, a budget cannot be passed, which makes their "no new taxes" pledge the California road map to Newt Gingrich's federal train wreck in 1995.

In January, I joined the Bipartisan Group. First we were 10 (five Republicans and five Democrats) and now we are 15, drawn together by frustration and a desire to build the trust we hoped would eventually lead to a bipartisan budget agreement.

We must put the state back on pay-as-we-go this year and not slip further into mortgaging our future. That's unacceptable. The leaders of our group, Joe Canciamilla, a Democrat, and Keith Richman, a Republican, have put forward a responsible balanced-budget proposal. Any budget solution must include:

• Spending cuts, including local government, prisons, schools and health and human services.
• Some new revenue, both temporary and permanent, including an increase in the sales tax.
• Isolated borrowing to deal with the remaining prior fiscal year deficit. The responsible way to finance a portion of the deficit over a limited time, such as five years, is to dedicate specific new revenue for that purpose.
• A business stimulus package, including workers' compensation reform and curtailing abuse of California's consumer protection law under section 17200.
• A cap on spending growth combined with a requirement for a healthy budget reserve ensuring a rainy day fund for the inevitable cyclical downturns.
• Major reforms, including a two-year budget and serious legislative oversight of programs.
This pay-as-we-go approach will require Democrats to accept major cuts in programs we care the most about, and it will require Republicans to soften their stand against more taxes. Fortunately, there is some movement on both sides.

The pieces of a responsible budget solution are within our grasp. All that remains is our willingness to act.

I will not vote to continue the same pattern that got us into this mess. That is my bottom line.

Assemblywoman Lois Wolk, D-Davis, can be reached at (916) 319-2008 or assemblymember.wolk@assembly.ca.gov