State Sen. Pro Tempore Don Perata (D-Oakland) on Friday blasted a Los Angeles Times story that said state legislative Democrats were considering taking monies from dedicated funds for local governments and transportation in order to balance the state budget.

Democrats have never entertained massive borrowing as a solution to this year's budget problem," stated a press release issued by Perata. "In particular, Democrats have never advocated nor believed in taking money from Propositions 1A, 42 and 10."

Proposition 1A restricts the state's ability to borrow from local funds for state budget purposes, while Propositions 42 and 10 lay out specific guidelines for how money generated by gasoline taxes and cigarette taxes, respectively, can be spent. Voters passed all three.

Perata said in the release that the budget, which is weeks overdue, should rely on additional revenues to come into balance, rather than the borrowing and other gimmicks that have been used in past years.

State legislative Republican leaders have said more cuts are needed and that they cannot accept new taxes as part of the solution.

State Sen. Denise Ducheny (D-San Diego), chair of the Budget Committee, added in the press release that Democrats have pushed for a budget that would be balanced this year and wouldn't push some deficits into future years.

Earlier this week, Gov. Arnold Schwarzenegger blasted legislators for acting without a sense of urgency in this year's budget negotiations, even with the state days away from needing to borrow at high rates to pay its bills.

Senate Republican leader Dave Cogdill (R-Modesto) said Tuesday that he believes a state budget could be approved next month, but was not specific on how that would happen, saying only that any proposals would have to result in a "net neutral" revenue situation for the state.

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