AUGUSTA – Legislative Democrats and Republicans prepared to permanently part ways Thursday over how to cover a $190 million revenue shortfall in Maine’s two-year budget.

Looking toward a likelihood of two separate plans being put before the House and Senate, negotiators cited three items as key sticking points.

One, an adjustment in the base year of a tax on net hospital revenue worth $11 million that could offset a proposed reduction in reimbursements for hospital-based physicians, was favored by Democrats and opposed by Republicans.

A second area of disagreement was over a Democratic desire to scrap an $8 million cut in aid to childless adults within certain income guidelines.

A third divide came on a $9 million boost in unclaimed property revenue related to stock market holdings that Democrats favored and Republicans opposed.

Spelling out how he would make up for a second $95 million reduction in state revenue estimates in three months, Gov. John Baldacci unveiled a budget change package on March 5 that would cut back planned expenditures including state aid to local schools.

Spending on local schools would be reduced by $34.1 million, although $11 million would not come directly from allocations to districts, administration officials said.

Since then, much of the debate around the budget deliberations has centered on human services.

“A week ago we heard the call to find a better way, to spread the pain, and we are getting to that reality,” House Speaker Glenn Cummings, referring to a large State House demonstration against human services cutbacks, said in a statement Thursday.

Leaders of the Republican legislative minorities, however, blamed Democratic unwillingness to go along with sufficient permanent changes in the state health system for the partisan breakdown as the Appropriations Committee sought to close out its work.

“This is the time to craft a redesign in the services that we deliver without raising taxes,” said deputy Senate Republican leader Richard Rosen of Bucksport.

As the Appropriations panel deliberated for another day, Democrats said they could cover the $190 million gap without broad-based tax increases. Cummings, in his statement, suggested that both sides had agreed on enough to get almost all the way there.

“With about 95 percent of the governor’s proposals voted on, around 90 percent has been agreed to by members of both parties,” said Cummings, D-Portland.

But the parties’ split left Rosen suggesting that the two sides ought to simply devote full time for finishing rival packages for consideration by the full Legislature next week.

Added House Minority Leader Josh Tardy, R-Newport: “There are major philosophical differences that separate Republicans [from] Democrats.” Tardy said an unwillingness by Democratic leaders to discuss Medicaid reform even at a level outlined by the Democratic governor doomed efforts at compromise.

Essentially breaking off further negotiations late Wednesday night was the humane thing to do for a weary Appropriations Committee, Rosen said.

“It became obvious that we were going to reach an impasse,” he said.

The committee nonetheless reconvened Thursday afternoon to resume considering line items and amendments.

Questioning the long-range impact of some spending reductions, Democratic Rep. David Webster of Freeport said, “We are making cuts to things that were instituted to save money.”

Senate President Beth Edmonds, D-Freeport, said Tuesday that lawmakers want to have a revised budget in place by April 1 to avoid a new Baldacci curtailment order, which she suggested would be a blunter method for coping with a looming shortfall than a more fully tailored plan worked out with the Legislature.

Baldacci issued a $38 million curtailment order on Dec. 18, 2007. The amount of the new curtailment, effective April 1 in advance of the June 30 end of fiscal 2008, would be $27 million.

On Thursday, in the temporary absence of Democratic Sen. Margaret Rotundo from her committee post as co-chairwoman, Edmonds herself assumed the open Appropriations slot.