The AP’s report:

Democrat leaders delivered some good news and bad news at the state Capitol Wednesday as the self-imposed deadline for a new state budget draws near.

The good news: The top two Democrat legislative leaders huddled behind closed doors with Gov. Rod Blagojevich for about two hours in the first serious budget discussions of the spring.

The bad news: The leaders talked only generally about the budget and signaled there still are some major obstacles to clear before an agreement is reached, even as they hope to finish their work within a week.

When did the AP start using the phrase “Democrat leaders”? The last time I checked, it was called the Democratic Party. Only Republicans wanting to make a subtle rhetorical point usually use that Democrat Party stuff. Anyway, here’s the Tribune’s take.

Gov. Rod Blagojevich and fellow Democrats who control the legislature began negotiating Wednesday on how much spending they can include in a new state budget as the governor sought to keep his showcase initiatives intact.

Blagojevich made a rare appearance in the waning days of the spring legislative session, amid grumbling from lawmakers that there may not be enough money for some of his key proposals.

And the Sun-Times:

With a self-imposed adjournment deadline looming, Gov. Blagojevich and top Democratic leaders Wednesday took their first steps toward crafting a new state budget. […]

Our staffs have been meeting, but there are major items I believe the leaders have to resolve, and that’s what this meeting was all about,” said Jones, the only leader to talk about the private session.

It was unclear how far apart dollar-wise the three sides are in a 2007 spending plan, but one area of disagreement appeared to be Blagojevich’s $90 million plan to create a $1,000 tuition tax credit for college students who maintain a “B” average. Sources familiar with the talks indicated Madigan pushed to dole out the money in a state grant program, while Jones advocated a mix between grants and tax credits.

Still, a Blagojevich aide said there were no major areas of contention and that all three leaders plan to resume talks today, six days before lawmakers hope to wrap up their work for the spring.

Lee Newspapers:

Democratic leaders told Gov. Rod Blagojevich to accept a smaller budget Wednesday. […]

“We’re going to do what’s necessary to get a budget and then get - out of here,” said Jones, D-Chicago, following the meeting.