SACRAMENTO - Gov. Arnold Schwarzenegger has struck new deals with local governments and the state's universities to try to clear the way for the first on-time spending plan in four years.

The two new accords, to be announced today and Wednesday, are the latest in a series leading up to Schwarzenegger's release Thursday of his updated budget, which marks the start of serious talks in the Legislature.

Successful passage of a spending plan before the start of the new fiscal year, which begins July 1, is the crowning challenge of the governor's first seven months in a Capitol that has been bitterly divided along partisan lines. Schwarzenegger is intent on narrowing the state's $12 billion shortfall -- 16 percent of the $76 billion general fund budget -- without raising taxes.

Like the deal he struck with public schools in January, the governor has persuaded universities and local governments to absorb budget cuts now in exchange for stable funding in the future.

The University of California and California State University, for example, have agreed to a deal through 2011 that will increase their budgets to reflect enrollment and inflation growth.

Still, the governor's handshake with university and local government officials does not mean that Democrats who control the Legislature will automatically follow, said Senate President Pro Tem John Burton of San Francisco.

``They aren't our deals,'' Burton said. ``We're not wed to them. We're not committed to them. We can accept, reject or modify.''

That Schwarzenegger, a Republican, has already struck four separate budget deals presents a dilemma for the Legislature. The governor's pre-emptive agreements, which also include public schools and courts, leave legislators little flexibility to protect health and welfare programs from deep cuts.

Democrats worry that the long-term commitments in the deals could leave the state short in two years if the economy does not rebound.

But if legislators stand in the way of an on-time budget this year, they will be seen as obstructionist.

``For some members, there will be a tremendous amount of pressure to get an on-time budget because of public perception,'' said Assembly member Joe Canciamilla, D-Martinez.

Schwarzenegger today is expected to stand with the leaders of UC and CSU to announce their agreement. The universities will accept the governor's January cuts in exchange for a compact that addresses inflation by providing 3 percent funding increases in the next two years and 4 percent increases through 2011, according to a source familiar with the agreement.

The agreement will provide an additional 2.5 percent increase to keep pace with enrollment growth.

At the administration's urging, the universities also will develop a plan to encourage more math and science majors to become teachers.

In January, Schwarzenegger proposed increasing student fees, reducing financial aid and diverting some qualified high school graduates to community colleges for two years. It was uncertain Monday how the new deal would affect these proposals.

``It's like déjà vu all over again. We eat it now and pretend we'll survive long enough to benefit down the line,'' said Lillian Taiz, a Cal State-Los Angeles history professor and faculty association vice president. ``It's a rotten deal for higher education.''

Wednesday, Schwarzenegger will announce an agreement with cities and counties, according to local government and administration sources. Local governments would give up $1.3 billion for two years -- not permanently as the governor initially proposed -- and Schwarzenegger would support a constitutional amendment that would protect them from future tax grabs.

The compromise would spread the size of budget cuts between cities, counties, redevelopment agencies and special districts, instead of putting most of the burden on counties.

``The governor has heard us loud and clear and seems to be understanding of our needs,'' said Santa Clara County Supervisor Jim Beall.

Since January, Schwarzenegger has methodically picked off major pieces of the budget to try to narrow the budget gap. He first struck a deal with K-12 education groups for $2 billion. Last week, he announced a deal with trial courts.

Schwarzenegger is close to sealing a deal with a handful of Indian gaming tribes that would give the state $1 billion or more in return for a significant expansion of gambling on tribal lands, according to sources close to the negotiations.

What's left is likely to be a legislative battle over health care and social services.

``That is where a large chunk of the fix has to come from,'' said Assembly member Ray Haynes, R-Temecula.

Sen. Deborah Ortiz, D-Sacramento, chair of the Health and Human Services Committee, said the governor's deals have isolated the defenseless.

``As much as the governor would like to make us irrelevant, the last time I looked we are still a Legislature and the deal has to come through us,'' Ortiz said. ``There are consequences to the deals they are cutting, and our job is to ask if it makes sense to do them.''