SACRAMENTO, Calif. -- Fixing California's health care crisis and making sure coverage is affordable may end up costing everyone next year, as a key lawmaker Tuesday floated a plan that could lead to individual payroll deductions.

Those who have health care coverage are subsidizing the 6 million Californians who don't. With costs spiraling and emergency rooms in trouble, lawmakers are promising to reform the broken system.

"Insuring all working families and adults and children who are most at risk. That seems to be a goal that everybody could agree to," said Don Perata, D-Senate President Pro Tem.

Perata is the first to float a fix-it plan. It's a proposal which aims to cover another 4 million Californians by making sure everyone pays into the system -- workers and their bosses alike.

The idea faces stiff opposition from business groups and their allies in the legislature.

"The principles we believe in, there should be no mandates," Assembly Republican Leader Mike Villines said.

"There would be an employer contribution and an employee contribution. If you want to call that mandates, yes. There's no free ride," Perata said.

Paying for the expanded coverage is the greatest point of conflict. Gov. Arnold Schwarzengger has declared that tax increases are not an option.

"And in order to implement a universal health care system, you can't get it for free," said Fabian Nunez, D-Assembly Speaker.

The governor has signalled that tacking the system will be one of his top priorities in the coming year, but has offered no details.

"For me it's important that we put it on the agenda and make this the year where we can take on these big challenges that we haven't addressed for years," Schwarzenegger said.

The governor has talked about "shared responsibility," indicating a desire to spread out the cost burden.

Perata's plan does not exclude the children of those who are here illegally; one of the touchier aspects of this debate.

His plan is the first of what promises to be a flood of competing measures as health care reform takes center stage at the state Capitol in 2007.

Schwarzenegger vetoed a bill earlier this year which would have provided universal coverage by having the state process insurance claims.