SACRAMENTO (AP) – Democrats and Republicans painted starkly different pictures of the negotiations over how to solve California’s budget deficit last week as a proposal to raise the state’s sales tax further clouded the already difficult negotiations.

The state was entering the second month of its fiscal year without a spending plan.

“We’re at an impasse,” said Assembly Minority Leader Mike Villines, R-Clovis. “The difficulties right now are very deep, and I’m hoping we can get past them.”

Democrats are seeking a combination of spending cuts and $8.2 billion in higher taxes on corporations and the wealthy. Republicans want long-term reforms to the state’s budget system and oppose any new taxes.

On that, “nothing has changed since June 15,” Villines said, referring to the constitutional deadline for the Legislature to pass a budget.

Meanwhile, Gov. Arnold Schwarzenegger floated the idea of a temporary sales tax increase to help close the $15.2 billion deficit when he met with legislative leaders last week.

Senate Minority Leader Dave Cogdill rejected the idea last week. He said the temporary nature of the tax increase was being proposed as a way to give cover to Republicans who might eventually vote for a budget compromise.

“A tax increase will worsen an already languishing economy. Housing values are plummeting, jobs are at risk, and everything costs more for the average Californian,” said Cogdill, R-Modesto. “I cannot envision any Republican legislator supporting such a proposal.”

Schwarzenegger spokesman Aaron McLear declined to discuss the sales tax proposal, saying budget negotiations were confidential. He said the governor remains optimistic that legislative leaders can reach a fair compromise.

Sources familiar with the budget talks who did not want to speak publicly for fear of upsetting negotiations said Schwarzenegger’s proposal would raise California’s sales tax by 1 percent for several years, then decrease it to an amount lower than it is now.

The state collects 7.25 percent in sales tax, with 1 percent of that automatically sent back to local governments. Many local entities also tack on their own increases, bringing the sales tax to more than 8 percent in many parts of the state.

The Democratic leaders of the Assembly and Senate said the sales tax proposal wasn’t theirs, but they did not reject the idea.

Steve Maviglio, a spokesman for Assembly Speaker Karen Bass, said Democrats have always said they’d consider any proposal but added that the sales tax “was not a part of our budget plan.”

“It’s not our idea, so it’s up to the governor,” to push Republicans to support increasing the sales tax, Maviglio said.

Lynda Gledhill, a spokeswoman for Senate Majority Leader Don Perata, said Democrats are still pushing to increase income taxes on the wealthy.

Still, Bass sounded more optimistic about the progress of the talks following last week’s meeting.

While Democrats oppose a firm cap on spending increases, she said they are willing to consider rewriting Proposition 58, the Schwarzenegger-backed rainy day fund voters created in 2004.

Bass, D-Los Angeles, said it could be strengthened to prevent the governor and lawmakers from easily transferring money out as they do now.

Schwarzenegger has said he will not sign a budget that fails to include structural reforms, which could include a spending cap and rainy day fund. The governor previously said he opposed raising taxes but has warmed to the idea as California’s budget impasse persists.