HELENA -- Before the wheels came off in a hail of profanity at the Montana Legislature Wednesday morning, Gov. Brian Schweitzer and fellow Democrats thought they had a deal that could bring the 2007 Legislature to a close.

This so-called deal, offered at an early-morning meeting between Schweitzer and House Republican Majority Leader Michael Lange, included an additional $30 million in state funding for schools in 2009 and another $50 million in tax rebates for Montana homeowners.

David Ewer, the governor's budget director, said the meeting was "cordial.'' He said he and others attending thought Lange indicated the offer might be an acceptable compromise to end a standoff between Democrats and Republicans over how to divvy up the state's projected $1 billion surplus for the next two years.

But somewhere between that meeting and a 9 a.m. caucus of House Republicans, Lange apparently had a change of heart. At the Republican meeting, he ripped into Schweitzer with a stream of expletives, calling the governor an "S.O.B.'' and the offer a "bribe.''

House Speaker Scott Sales, R-Bozeman, said later the offer doesn't contain a shred of what Republicans want: Across-the-board, permanent reductions in property taxes for all property owners.

Furthermore, Republicans were being asked to accept a substantial tax increase on some businesses to finance the school-funding increases, he added.

"To me, that's not tax relief,'' Sales said. Republicans hold a 50-49 majority in the House.

Here's a look at the details of the offer from Schweitzer:

n Republicans would agree to approve budget bills tied up in the House, without change, thus enacting several hundred million dollars of spending increases for state agencies.

n Republicans also would agree to pass an omnibus tax bill, which includes tax rebates but also some increases, including a $30 million, annual increase from a new tax on real estate investment trusts (REITs).

n The $30 million from the REIT tax would be put in a special account, which would be distributed to public schools beginning in 2009. Any money beyond that amount would remain in the account, for distribution to schools in future years.

n A one-time tax rebate to Montana homeowners this year, proposed by Schweitzer, would be increased from $400 to $600 -- if revenue projections that indicate the money is available still hold true later this summer.

n A small change would be made in something called ''guaranteed tax base'' for schools, increasing state aid $630,000 over the next two years, flowing to districts with relatively low property values.

Tax cuts and rebates in the plan totaled about $200 million for the next two years, although most of it is a one-time reduction that doesn't extend beyond 2009.

Ewer defended the offer as a good one, saying lawmakers also have approved financial bail-outs for the Teachers Retirement System and other public-employee pension funds, thus saving school districts and local governments from having to levy additional property taxes to cover those costs.

Republicans don't see it that way, however, and would like at least $200 million in across-the-board, long-term property tax reductions, Sales said.

One offer still on the table is from Lange and Rep. Bill Glaser, R-Billings, to cut local school property taxes by $80 million the next two years. The state would assume those costs.

That offer will be considered today, said Senate President Mike Cooney, D-Helena, but Democrats worry that the money isn't there to cover it into the future.

Sales said there's an easy way to ensure that the money is available: Start cutting back the huge spending increases in the budget bills still before the House.

Cooney said Democrats are willing to look for ways to scale back spending. But Democrats Wednesday were still mystified about how what they thought was a deal evaporated in a matter of minutes.

"We've tried to answer the question, 'Is there common ground?''' said Ewer. "And we thought we had that common ground this morning, and apparently we do not.''