This entry in the Sacramento Bee‘s “Capitol Report” contains an array of interesting budget tidbits, especially:

There is also talk that Republicans might agree to some new revenues – though not the broad taxes Democrats would prefer.

Villines added fuel to that fire Thursday, when he said he’s open to closing tax loopholes: “I don’t believe you have to do this budget with tax increases. I do believe you may have to look at some loophole closures.”

One “loophole closure” currently bandied around is the Democrats’ plan to suspend the “net operating loss” for corporations (which represented $1.1 billion of the new funds in the Democrats’ budget proposal.)

But Republicans say they aren’t going to agree to much of anything without some type of spending cap for the state. Which, of course, Democrats oppose.

“The Legislature wishes to continue to spend like a rap star even when the hits are over and our “posse” has moved on,” is how Assemblyman Doug LaMalfa, R-Oroville, put it.

Legislative GOPers also have pushed for a free-market economic stimulus plan in the negotiations.

In his press conference on Thursday, Schwarzenegger signaled that could be in the works. “And when it comes to stimulating the economy, we hopefully have, as part of our budget, a stimulus package that will stimulate the economy,” he said.