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SACRAMENTO, Calif. —  Democrats were trying to break a weekslong impasse over California's multibillion-dollar deficit by making an end run around Republicans, offering a complicated mix of revenue cuts and increases that they said would raise billions without requiring two-thirds majority typically needed to raise taxes.

Meanwhile, a state panel that oversees loans for public works raised another alarm in the state's budget crisis by voting to stop financing nearly all infrastructure projects in California, halting nearly $4 billion in loans for everything from freeway interchanges and carpool lanes to classrooms.

Treasurer Bill Lockyer, the board chairman, had warned the Legislature last week that the unprecedented halt in funding would be necessary if lawmakers did not immediately address a $14 billion deficit in the fiscal year that ends in June. The hole is forecast to grow to $42 billion over the next 18 months.

Lockyer estimated previously that the frozen projects could cost California 200,000 jobs in every part of the state. Officials were still calculating the effect of Wednesday's decision.

The Democratic proposal would address $18 billion of the state's shortfall over the next 18 months through a scheme that would cut some taxes and raise others, as well as slash more than $7 billion in spending on health, education and prisons.