Fabian Núñez, sworn in Monday as California's new leader of the Assembly, outlined an optimistic agenda that includes passing a balanced budget on time, creating a spirit of bipartisanship and changing business as usual at the Capitol.

"I ask that we start by taking a fresh look at ourselves and our thinking," Núñez told a standing-room-only crowd of legislators, dignitaries and guests in his inaugural address.

"Each of us comes to this house with strongly held beliefs," he said. "While our beliefs can be the starting point of conversations, they should not be the end. We should not let the tunnel vision of ideology keep us from seeing what's best."

The Los Angeles Democrat, who joined the Assembly only 14 months ago, also announced a slate of key committee assignments that will see Assemblyman Darrell Steinberg, D-Sacramento, serve as the Assembly's point man on budget negotiations.

Steinberg, who is termed out after this year, was named chairman of the Assembly Budget Committee. He previously served as head of the Assembly Appropriations Committee, a post that will be filled by Assemblywoman Judy Chu, D-Monterey Park.

Núñez vowed to help craft a fair and balanced budget that does not "place an unfair burden on those who cannot bear it."

"Acting swiftly does not mean acting carelessly," he said. "The actions we take to balance our budget today should not dash our hopes for tomorrow."

Asked later Monday if he thought a new state budget should include a tax increase, Núñez replied, "I think everything needs to be on the table."

Mixing business with pleasure during the nearly 90-minute ceremony, Núñez accepted accolades from both sides of the aisle, then announced in his speech or during a news conference afterward that:

* He has created a new Assembly Fiscal Team to help coordinate the Democratic Caucus' strategy in crafting a budget. The team will be led by Steinberg, Chu and Assemblyman John Dutra, D-Fremont.

* He does not expect to meet Republican Gov. Arnold Schwarzenegger's March 1 deadline for overhauling the state workers' compensation insurance system, but he is committed to reform and will convene the Assembly's Insurance Committee to seek legislation designed to balance the interests of workers and employers.

* He will make energy policy and creation of new power plants a top priority this year.

"Not long ago, an energy crisis crippled our state," he said. "And while the situation has stabilized for the moment, it's a mistake to think the problem is behind us."

Besides Steinberg and Chu, Assembly members named to key chairmanships Monday included Cindy Montañez, D-San Fernando, to the Rules Committee; Jenny Oropeza, D-Long Beach, to the Transportation Committee; and Rudy Bermudez, D-Norwalk, to the Revenue and Taxation Committee.

In the process, Núñez removed Oropeza as budget committee chair and Assemblyman Joe Nation, D-San Rafael, as head of the powerful rules committee. Both had challenged Núñez for the speakership.

Núñez said some members have complained that overlapping committee assignments create conflicts. He plans to reduce committee sizes, some by as much as one-third.

The new speaker cited the Health, Budget and Governmental Organization committees as potential candidates for reduction.

Much of Monday's ceremony was spent praising Núñez, 37, as an example of someone whose hard work and tenacious spirit helped lift him from a childhood of poverty to become the Assembly's 66th speaker.

Núñez, who has 11 brothers and sisters, is the son of a Mexican gardener and a maid.

"I never would have fathomed the thought that I'd be here," Núñez said of becoming speaker.

Schwarzenegger joined the ceremony shortly after the inaugural speech to hug Núñez and later pose for photographs with three dozen members of the speaker's family.

In a prepared statement, Schwarzenegger praised Núñez as a "man of honesty and integrity."

But Karen Hanretty, a spokeswoman for the California Republican Party, said it remains to be seen whether Núñez's calls for bipartisanship are more rhetoric than reality.

"You have to question the past rhetoric of Mr. Núñez, which has been very partisan in nature," she said.