BOND DEAL NOT QUITE THERE LAWMAKERS STILL HAGGLING OVER $35 BILLION FOR ROADS, SCHOOLS, DAMS.

Byline: HARRISON SHEPPARD Staff Writer

SACRAMENTO - Pressured to reach a deal before lengthy budget talks later this month, leading lawmakers worked late Thursday to resurrect a plan to include a $35 billion bond package for roads, schools and levees on the November ballot.

But they appeared to have trouble selling the plan to their members, as the Legislature repeatedly delayed debate on the package to meet privately with their party leaders.

Assembly Speaker Fabian Nunez, D-Los Angeles, described the talks as almost complete late Thursday afternoon.

``We've got the football in our hand, we're running towards the goal line,'' Nunez said.

``We've just got to make sure we don't drop the ball on our way there. Things are looking very good at this point.''

But Republicans have expressed concerns over a number of issues, including environmental provisions in the deal and the limited window of time to absorb and vote on it. In the past, several Republican members have voted against similar late-night measures on the principle of needing more time.

``That has been our concern in the past -- not seeing and not having a copy in print of the actual bills we're voting on,'' said Assemblywoman Sharon Runner, R-Lancaster.

The plan needs some Republican support, as it requires a two-thirds vote to be placed on the ballot.

Legislative leaders were hoping to close a deal this week before they get tied up negotiating the governor's revised 2006-07 budget, to be released May 12.

The bond is an outgrowth of Gov. Arnold Schwarzenegger's push this year for the state to launch a massive 10-year infrastructure building project.

The governor's Strategic Growth Plan initially included $222 billion in spending, including $68 billion in bonds. Earlier negotiations had reduced the size of the borrowing, but those talks failed to get the first installment of the bond on the June ballot, as the governor had hoped.

The new tentative deal includes four separate bonds to be placed on the November ballot: $19 billion for transportation; $2.8 billion for housing; $10.4 billion for education; and $3.1 billion for flood protection.

Additionally, the leaders agreed on a $500 million appropriation from the general fund for levee repair. Negotiators for the two sides also reached agreement on measures to increase the use of the design-build method of construction on transportation projects; public-private partnerships and streamlining of some environmental regulations.

With one exception, the package at this point does not have specific breakdowns by geography or project. But Los Angeles county and city officials expect the region to get substantial funding for major projects such as subway and bus line expansions and new freeway car-pool lanes.

The only earmark for a specific project in the bond package is $1 billion for improvements to State Highway 99 in Northern California.

Former Assemblyman Richard Katz, a city appointee to the Metropolitan Transportation Authority board, believes the MTA's top priorities are likely to receive some funding, including $350 million for the extension of car-pool lanes near the 101-405 interchange; funding for studies of a north-south bus line in the Valley; and the city's plans to speed up computerization of local traffic signals.

Katz, who was involved in bond negotiations and lobbying on the city's behalf earlier this year, said the city was successful in revising some of the formulas used for distribution of public transit funds.

The previous formulas were more beneficial to Northern California in that they included credit for things like ferries and cable cars. The new formulas, he said, are based more on population and on fare box collections and should be more beneficial to Los Angeles.

``There's a lot of money we know is going to be coming to us, so we'll be able to fund our priorities,'' Katz said. ``That is, there's going to be a lot of money coming to us if the voters agree and pass the bond. There's that little caveat.''

Business and political leaders throughout Los Angeles are eagerly awaiting details of the deal, saying the region's infrastructure badly needs an injection of new funding.

``The infrastructure needs are so great, even funding one major project would be a big help,'' said Brendan Huffman, president of the Valley Industry & Commerce Association. ``Our needs are in transportation, in water, education, you name it.''

Huffman said infrastructure projects such as the Alameda Corridor and port improvements will benefit the whole region's economy in terms of improving the efficiency of goods movement. Other projects such as improving the levees and flood control systems in Northern California benefit Los Angeles because they help protect the water supply.

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