SACRAMENTO, Calif. -- After a stalemate that has lasted more than two months, state lawmakers are still unable to compromise on a budget.

Senate Republicans unveiled a new budget proposal Saturday -- a proposal they said they believe will help solve the $15.2 billion deficit.

The Senate Republican caucus said its proposed spending plan balances the budget without raising taxes or borrowing from local governments.

Republican lawmakers want to drop the governor's temporary 1 percent sales tax increase.

The plan would also securitize the lottery. However, Democrats said that's going to mean big education cuts and $2 million of borrowing. Something they said makes this an unrealistic plan.

"What they're really doing is trying to figure out how not to raise taxes and the only way to do that is steep cuts and borrowing. At least what's clear about the borrowing lottery securitization is borrowing for existing expenses," said Assembly Budget Chair John Laird.

Republicans said their proposal includes a strict spending limit and rainy-day reserve to fix future budget problems.

"We believe we need real budget reform, a spending cap that limits government spending," said Sen. Dave Cogdill.

The Democrats plan, meanwhile, would cut $10 billion from the state budget and also includes a temporary 1 cent tax increase, which could raise $4 billion.

"My Republican colleagues know that the only we way we can solve this is through identifying revenue," Assembly Speaker Karen Bass said. "And if we had their votes for a budget, we would have been able to solve this over a month ago."

The deadlock has delayed lawmakers' departure from the Capitol and prevented Schwarzenegger from speaking at the Republican National Convention.

The governor was scheduled to address delegates in St. Paul, Minn., on Monday, but convention organizers canceled all but official party business that day as Hurricane Gustav bears down on the Gulf Coast.

Another convention speaker, Sen. Abel Maldonado, still plans to appear at the convention Wednesday, unless there is a budget vote that day, said his spokeswoman, Brooke Armour.

Senate President Pro Tem Don Perata, D-Oakland, said his house would meet every day until a budget was passed. He scheduled a Senate session for late Monday afternoon.

Assembly members are being required to remain within three hours' traveling distance of Sacramento. Speaker Karen Bass, D-Los Angeles, is considering calling at least one Assembly meeting this week, spokesman Steve Maviglio said.

Lack of a budget prevents the state from making billions of dollars a month in payments, including support for some school programs, aid to local governments, payments to companies that supply prisons, hospitals and other state facilities, and the salaries of elected officials and their staffs.

State Controller John Chiang said he so far has not been able to write nearly $4.2 billion in checks. Failure to pass a budget by the end of September would hold up at least another $7.6 billion, he said.

A budget deadlock lasting that long also would test Schwarzenegger's attempt to force a budget agreement by pledging to veto, if necessary, any bills sent to his desk before lawmakers adopt a new state spending plan.

Sept. 30 is the deadline for him to act on bills sent to him in the last couple of weeks of the Legislature's session. Any bills not signed or vetoed by that date would become law without his signature and make his threat meaningless.

The state Senate will meet again on Monday, and every day this week at 4 p.m., for a special budget session, officials said.