SACRAMENTO, Calif. - Chances of a quick resolution to California's budget stalemate appeared to fade Wednesday after Senate Republican holdouts ousted their leader in a midnight coup and promised to resist tax increases that GOP Gov. Arnold Schwarzenegger says are needed to close a $42 billion deficit.

The Democrat-controlled Legislature appears to need just one more GOP vote in the Senate to reach the two-thirds majority it needs to get the budget to the governor's desk, but that vote may prove impossible to get.

"We don't want to see taxes increased, increasing the tax burden on Californians," Sen. Dennis Hollingsworth, R-Murrieta, said Wednesday, hours after he replaced Modesto Sen. Dave Cogdill as Senate minority leader.

The proposal that has been before lawmakers since late last week would use spending cuts, borrowing and $14.4 billion in tax increases to close a projected $42 billion budget deficit through June 2010. As tax revenue has plunged, refund checks to taxpayers have been delayed, payments to state vendors have stopped and the state's credit rating has deteriorated to the worst in the nation, preventing borrowing.

With full support from Democrats, the bill needs three GOP votes in each house to pass. But many Republicans in the Legislature have signed a pledge against raising taxes and have decided to stick to it, even though they have not come up with a plan to close the entire deficit with cuts.

Late last year, Republicans proposed a plan they say would have saved about half that amount.

Some Senate Republicans want to focus on closing the deficit in the fiscal year that ends June 30 rather than focusing on the two-year shortfall. They want the immediate deficit closed with cuts and shifting money from other accounts.

"Our caucus is pretty solid in terms of not voting for a tax increase," said Sen. Tony Strickland, R-Thousand Oaks. "We know the dire situation the state is in, but we do more damage by taxing Californians."

Schwarzenegger criticized that stand during a Wednesday afternoon news conference. He said there is no way to close the $42 billion deficit without tax increases.

"If you think that you can do this without any increase in revenues, then you have a big math problem," Schwarzenegger said. "I despise revenue increases. I hate taxes. But when you're faced with that kind of a reality then that's where you have to go."

Schwarzenegger and the Democrats have said they have no appetite for reopening budget negotiations. A difficult two-month process involving leaders of both parties produced the compromise that is currently before lawmakers.