TALLAHASSEE -- A grand jury report bashing the Legislature for secretiveness in the budget process hasn't changed political business in the state Capitol.

High-level talks continued Tuesday -- behind closed doors, by phone and out of the sunshine as legislative leaders and their staffs traded offers to settle bottom-line differences between the two chambers' proposed state budgets, which remain about $547 million apart.

At the center of the talks: a gambling deal with the Seminole Tribe of Florida and $1-a-pack cigarette tax that the formerly anti-tax House appears ready to accept. But the House wants something from the Senate in exchange: bigger cuts to higher education, state-worker pay and a transportation fund.

Senate President Jeff Atwater called the proposed House cuts ''destructive,'' in an interview with The Miami Herald/St. Petersburg Times. He said the reductions would cost jobs and hurt higher education and state workers. House Speaker Larry Cretul, in turn, broke days of silence, saying from the dais that he felt the Senate plan wasn't ''prudent'' because it didn't sock away enough savings.

IN PRIVATE?

What do the two say privately about the budget and a host of other major pieces of legislation? Few know. And Republican legislative leaders want to keep it that way.

Echoing others, Miami Republican Rep. David Rivera, a House budget leader, said the leaders need to negotiate a ''broad'' bottom line before lawmakers from both chambers meet in conference committees to work out the fine details. He said there's little mystery in the budget process. ''If people were to see it firsthand -- there's a lot of give and take,'' Rivera said. ``It's very open, very accessible.''

But not for the public. Not for the press. Not even for some state representatives.

St. Petersburg Rep. Daryl Rouson, a freshman Democrat, showed up at House Speaker Larry Cretul's office Sunday and asked staffers if he could sit in on budget meetings. He was told he couldn't. 'It reminds me very painfully of `to the victor go the spoils,' '' Rouson said. ``I'm extremely concerned about the process.''

This year, budget talks are thornier than ever because of multiple pressures: sagging tax collections, federal stimulus money that will run out after two years, budget cuts, a governor many say remains on the sidelines, pressure from anti-tax groups to cut more coupled with pressure to spend more by school, health and construction advocates.

SANSOM'S LEGACY

And then there's the legacy of Rep. Ray Sansom, the Destin Republican who resigned as speaker of the Florida House while under investigation for alleged manipulations of the budget process. Before he quit his post, Sansom weakened the position of House budget chairman by dividing duties between Reps. Rivera and Marcelo Llorente, also a Miami Republican.

Sansom was indicted Friday along with a Panhandle college president on a felony charge stemming from a $6 million state-funded airplane building. It was designed to benefit a Sansom political ally and major Republican donor, the grand jury said.

The indictment shocked the Capitol. Many believe that what Sansom did -- bringing home bacon to his district -- was the right and duty of a legislative leader.

The grand jury, however, said the process ``allows taxpayer money to be budgeted for special purposes by those few legislators who happen to be in a position of power.''

The Senate's budget chief, J.D. Alexander of Lake Wales, took issue with the report. He said private discussions are needed. ''It would be virtually impossible to come to resolution if we did all this in public,'' Alexander said. ``It would become so politicized that you couldn't work through very challenging issues.''

Alexander said the next few days are crucial. If the leaders can't agree on allocations and the budget isn't printed by Tuesday, there's a likelihood that lawmakers won't finish by May 1. They could work overtime or convene a special session before the budget year begins July 1.

As the House engaged in a four-hour floor session Tuesday, Reps. Dean Cannon and Will Weatherford -- Republicans set to take over as speaker in 2010 and 2012, respectively -- left the chamber for long stretches as budget talks ground on privately.

At one point, Gov. Charlie Crist dropped by House Speaker Larry Cretul's office to suggest that the state economy was improving and revenues could be on the uptick.

''He was sharing with us his optimism,'' said Weatherford, R-Wesley Chapel.

But the House remains adamant that the budget must be leaner. ''We're concerned about the stimulus hangover. When that money runs out after next year, what's the shortfall then?'' Weatherford asked. ``We feel like if we're going to make the tough decisions, we should make them now.''

Marc Caputo can be reached at mcaputo@Miami Herald.com

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