REPUBLICANS ABLE TO LISTEN IN ON DEMOCRAT MEETING.

Byline: David M. Drucker Staff Writer

SACRAMENTO - Assembly Democrats in a not-so-private meeting Monday speculated that the continuing deadlock over the state budget could benefit their party politically by slowing the drive to recall Gov. Gray Davis and by building public support for a proposal to cut the number of votes needed to pass a budget.

The two-hour closed-door meeting, part of which was accidentally broadcast on an internal radio network and taped by Republicans, was called by Democrats to discuss the implications of passing a budget without tax increases.

Some speakers at the meeting said the stalemate over the 2003-04 spending plan may bolster public support for placing an initiative on the March 2004 ballot that would decrease the votes needed to pass a budget, from two-thirds of the Legislature to 55 percent, greatly diminishing Republican power in Sacramento.

The impasse over the budget could also result in the public blaming Republicans for the state's fiscal crisis and ultimately could help Davis beat back the recall.

``All the polls suggest that if you don't have a budget, it lends itself to help support the effort for the 55 percent,'' one assemblyman said at the meeting. ``Folks heading up the anti-recall effort say if they don't have a budget, it helps Democrats in the recall.''

Among the recognizable voices on the tape were Assembly members John Longville of San Bernardino, Hanna Beth Jackson of Santa Barbara and Jackie Goldberg of Los Angeles. Longville, through an aide, declined to comment, and Jackson's office did not respond to a message left late Monday afternoon.

Goldberg, who could be heard speculating on the consequences of perpetuating the budget crisis this year as opposed to next year when many Democrats will be running for re-election, defended the topics discussed in the meeting and said Republicans were despicable and unethical for eavesdropping.

``Some people brought up political issues,'' Goldberg said. ``This should not shock anyone. After all, we are in politics.''

The bulk of the meeting, she explained, involved how to deal with a budget that does not contain tax increases.

Many in the Assembly believe the state Senate - under the auspices of Democratic Sen. John Burton of San Francisco and Sen. Jim Brulte, R-Rancho Cucamonga - is likely to negotiate a plan that will not include tax hikes.

Accordingly, Assembly Democrats would have to sign on to an additional $1.5 billion in cuts that make many uncomfortable.

Goldberg said the majority of the caucus revolved around whether to hold out for a better budget or approve a Republican plan that would require more ``draconian'' cuts and create large deficits in the future.

``This group of Democrats got together to see what we could do to stop this death march to insolvency,'' Goldberg said.

Republicans were outraged that prolonging the budget logjam was discussed under any circumstances.

David M. Drucker, [phone]

david.drucker(at)dailybulletin.com