Legislative leaders have promised to make solving the state's water woes a top priority this year. But the longer the budget impasse lasts, the better the odds that water will be pushed into next year.

"This budget just sucks the oxygen out of the room," said Assembly Member Tom Berryhill, R-Modesto. "It's very hard to concentrate on water when it's all about the budget."

The Legislature this week took the procedural first steps needed to create a joint Senate-Assembly "conference committee" to consider water legislation. On the table are money for dams, canals and new agencies to oversee the beleaguered Sacramento-San Joaquin Delta.

This is the same structure lawmakers used earlier this year in attempt to solve the state's massive budget deficit. Leaders touted the transparency of the process, which included endless public testimony. But in the end, it did not work so well -- and leaders have since retreated to closed-door meetings in attempt to reach an accord.

The creation of a water conference committee still requires approval by both houses. Alicia Trost, spokeswoman for Senate Leader Darrell Steinberg, said leaders have not made a final decision on creating the special committee.

Earlier this week, environmentalists and fishermen held a Capitol rally blasting lawmakers for debating water issues in secret. They were referring to the "working groups" of lawmakers who have met behind closed doors in recent months.