A Republican state budget proposal was rejected twice in two days by Democrats, with a party line vote in the state Assembly Tuesday turning back another chance for the state to end its 71-day budget stalemate.

On a party-line vote, Assembly Democrats defeated the proposal, which contained more cuts, borrowing from lottery revenues and none of the higher taxes that have marked proposals from Democrats and Gov. Arnold Schwarzenegger, a Republican.

Assembly Republican Leader Mike Villines (R-Clovis) responded to the rejection by pointing out that Democrats have also rejected proposals to provide supplemental funding for some state services until a full budget is approved.

"By rejecting this compromise budget proposal, Democrats have made it clear that they are only interested in imposing billions in higher taxes on working families so they can spend more on bigger government," Villines wrote in a statement. "Meanwhile, the poor, the elderly and the disabled who rely on the state for vital services are suffering."

The rejection makes it unclear what the next step is. Democrats have called on Schwarzenegger to convince his fellow party members to accept a majority-Democratic proposal that still needs a two-thirds majority to pass.

Legislative Republicans have said they welcome further discussions and compromise, but won't accept any proposal that includes new taxes.

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