AUGUSTA -- Democrats and Republicans on the Legislature's Appropriations Committee have rejected tax increases as a way to help fill a $190 million hole in the state's $6.3 billion two-year budget, but they disagree on what to do instead and are preparing competing plans for the full Legislature to consider.

The two proposals, which are being drafted by legislative staffers this weekend, share many of the same elements but differ on key points, paving the way for disagreements when the House of Representatives takes up the issue next week.

The Democratic plan has attracted the most attention since the Appropriations Committee backed it on a partisan 8-3 vote late Thursday night, with two Republicans absent. That's because Republicans lack the votes to push their own agenda through the Legislature.

The Democrats would cut aid to local schools by $34 million and shrink but not eliminate proposed cuts in social services and higher education.

Advocates for the poor say the Democratic plan is not as draconian as the supplemental budget that Baldacci originally submitted to the Legislature. But other activists fear that developmentally disabled people will suffer if the plan passes.

Business leaders, meanwhile, praised both parties on the Appropriations Committee for refusing to back tax hikes. Chancellor Richard Pattenaude of the University of Maine System and President John Firzsimmons of the Maine Community College System credited the committee for scaling back Baldacci's proposed higher-education cuts.

Both plans would resist calls to dip into the state's savings accounts as a budget-balancing tool. Democrats rejected Republican suggestions that state legislators and their staffs pick up 10 percent of the cost of their health insurance, which is now fully funded by the state.

The Democratic plan would eliminate the Legislature's watchdog agency and transfer its duties to the Legislature's fiscal office, a proposal opposed by Republicans on the Appropriations Committee.

The Republicans would force state employees to take three unpaid furlough days to save the state money, a proposal opposed by Democratic committee members.

The Democratic package coming out of the Appropriations Committee has the support of Democratic Gov. John Baldacci and top Democrats in both branches of the Legislature, which is under Democratic control.

"This is a tough budget," said David Farmer, Baldacci's spokesman. "While it takes a big bite out of the Medicaid program, it's a lesser bite" than the one Baldacci had proposed to the Legislature, Farmer said.

It remains to be seen if Democratic lawmakers will quickly unite behind their party's plan or demand changes once the full Legislature takes up the issue.

There is still a chance that the Democratic plan could be revised enough to placate Republicans and win bipartisan support. What seems more likely is that the Democrats will pass a budget with little or no Republican backing. House Speaker Glenn Cummings, D-Portland, and Senate President Beth Edmonds, D-Freeport, predicted Friday that Democrat majorities in both branches of the Legislature will support it.

"There are several major differences (between the parties) that I don't think will be reconciled," said House Minority Leader Joshua Tardy, R-Newport. As a result, he said, it seems clear the Democrats will pass their own budget.

Baldacci submitted a proposed budget to the Legislature that essentially relied on spending cuts to eliminate the $190 million gap between scheduled state spending and projected state revenues during the balance of the two-year cycle that ends June 30, 2009.

The Democratic legislative plan would cut about $175 million in spending, take surplus funds from state agencies, block inflationary increases in a property-tax break and restrict the use of a business deduction for one year, to hit the $195 million target.

While Baldacci proposed eliminating prescription coverage for childless adults enrolled in the Medicaid program to save $7 million, the Democratic plan in the Legislature would retain drug coverage but require a greater use of generic drugs, saving $3.5 million in that program.

Baldacci had proposed cutting state funding for public colleges and universities by $9 million, but the Democratic plan backed by most members of the Appropriations Committee would shrink that cut to $4 million, according to the Senate president's office.

Foster parents and adoptive parents face smaller subsidy cuts under the legislative plan than they would have received under the governor's proposal.

Democrats on the committee would eliminate proposed cuts in funding for domestic-violence, sexual-assault and family-planning programs and scale back cuts proposed by Baldacci in podiatry services for Medicaid recipients and food stamps for legal immigrants.

"The (Democratic) report maintains Medicaid coverage for some of the very poorest people in the state," many of whom would not have access to any insurance if they lost Medicaid, said Christine Hastedt of Maine Equal Justice Partners, an advocacy group.

But Mary Lou Dyer of the Maine Association for Community Service Providers, whose members serve the developmentally disabled, said adults will lose community-based services under the Democratic plan. She said that will greatly inconvenience family members who care for them.

"The safety net is really starting to unravel," said Dyer, who described the Democratic plan as misguided.

"I am very pleased to hear that there are no tax increases in here," said Chris Hall of the Portland Regional Chamber, who singled out Baldacci for his early and consistent opposition to raising taxes to balance the budget. "The economy simply is not in a position to absorb an additional tax increase right now," Hall said.