California ? Gov. Arnold Schwarzenegger and top lawmakers found themselves back at an impasse Thursday after they appeared to be edging toward a deal to close California’s $26.3 billion budget deficit.

The latest dispute arose over education funding and prompted state Treasurer Bill Lockyer to issue a stern warning. He said further delays will threaten the state’s ability to build schools, highways and levees.

Lockyer said the state’s recent credit-rating downgrade could jeopardize its ability to secure financing for infrastructure projects, which would hurt businesses, local governments and ultimately, taxpayers.

“They didn’t cause this mess. But they’re paying for it,” Lockyer said in a news release. “How much is enough?”

Lockyer called on Schwarzenegger and lawmakers to narrow their disputed issues and “stop using the budget negotiations to score points with political allies or against partisan opponents.”