The unexpected resumption of negotiations between the Gov. Arnold Schwarzenegger and legislative leaders, on Saturday, might just see the much-required compromise come through, for ending California's fiscal calamity by addressing the $26 billion budget deficit.

The resumed negotiations largely centered on the size of budget cuts - which are likely to fall in the between $14 billion and $15 billion range - as well as the other steps that can be taken to close the budget shortfall.

Despite expressing hopefulness about the course of the talks, the lawmakers from both parties have also cautioned that a lot of work is still left - with the demands for the government reform by Gov. Arnold Schwarzenegger and Republican lawmakers still to be met.

Commenting on the resumption of talks after almost a fortnight of inaction and partisan bickering, and hoping that a budget-balancing deal appeared possible in the near future, Assembly Minority Leader Sam Blakeslee, a San Luis Obispo Republican, said: "I would say we're getting very close to a general framework, but there are still outlying questions."

Schwarzenegger and the lawmakers, who negotiated for nearly 2 1/2 hours on Saturday before ending talks for the day; are expected to return to the Capitol on Sunday. The key issues to be negotiated would include welfare; pension; health care; in-home supportive service programs; and education funding.