It seems as though the two sides of the California state legislature have staked out their positions with another long standoff likely ahead, the latest developments in the Golden State budget debate detailed in this story at Bloomberg.

California Democrats unveiled a plan to erase the state’s $19.1 billion budget deficit with higher income taxes and a new levy on oil producers to offset wholesale spending cuts proposed by Governor Arnold Schwarzenegger.

The plan from Democrats in the state Legislature would bring in $1.8 billion by increasing income-tax rates 1 percentage point on all but the wealthiest Californians. It would cut spending by $8 billion and raise $1.5 billion by increasing vehicle-registration fees, $600 million by taxing oil wells and $2 billion by suspending corporate tax breaks.

Schwarzenegger, 63, and fellow Republicans said they’ll block the proposals, continuing an impasse that has left the most-populous U.S. state without a budget since the fiscal year began on July 1. Controller John Chiang, a Democrat, has warned that he may need to issue IOUs instead of paying some state bills to save cash if the stalemate lasts into next month.

“Tax increases are dead on arrival,” Aaron McLear, Schwarzenegger’s spokesman, told reporters today. “Tax increases are not something we will support.”

Part of Schwarzenegger’s proposal is a 10 percent pay cut for state workers, what appears to be a growing trend around the country as made clear in this New York Times report today. Of course, the Governator’s 2003 campaign promise of lower auto registration fees looks like it will take another hit as he prepares to leave office, some thinking that $500-$800 checks to the DMV will again be seen before Schwarzenegger steps down in January.