RICHMOND -- Gov. Tim Kaine huddled privately with General Assembly leaders Thursday to discuss the transportation funding bill that lawmakers passed last month, but made no apparent progress toward resolving a major sticking point that could keep the governor from signing it into law.

Kaine and key Republican legislative leaders remain at odds over a key component of the proposed package -- using revenue from the state's general fund to retire debt on $2.5 billion in bonds.

Despite the conflict, Kaine spokesman Kevin Hall described the governor's discussions with lawmakers as "productive and cordial." Lawmakers from both parties also described the talks as positive.

The governor has promised to make major changes to the bill before a March 26 deadline to complete work on legislation. Lawmakers will return to Richmond on April 4 to act on bills that Kaine amends or vetoes. Kaine could veto the transportation bill if lawmakers reject his amendments.

The bond proposal is central to the statewide portion of the transportation bill, which also includes regional packages for Northern Virginia and Hampton Roads. Kaine objects to the transportation plan's long-term reliance on general fund revenue for debt service, saying the strategy could jeopardize funding for other general fund programs such as education, health care and public safety.

Republican leaders insist their plan won't compromise funding of critical state services and will pump new money into road-building without broad-based tax increases. The bill does call for a $10 increase in vehicle registration fees.

House Speaker Bill Howell, R-Stafford County, said both sides made their positions clear during a closed-door meeting that lasted about 70 minutes.

"He feels very strongly about where he is," Howell said of the governor.

Howell and other Republican leaders argue that Kaine and his Democratic allies are overstating the impact the transportation bill would have on the general fund budget, which will be $17.3 billion in the upcoming fiscal year. Debt payments would not exceed 1 percent of the general fund, they said. And the state already has a history of using some general fund money to pay off transportation bonds, Howell noted Thursday.

Democratic leaders, who met separately with Kaine, said they would not back a transportation plan that could drain money from other programs.

"Core services, schoolchildren, frail elderly nursing home patients are not going to be sacrificed for transportation," said Sen. Edd Houck, D-Spotsylvania County.

House Minority Leader Ward Armstrong, D-Henry County, said he hopes the two sides can come up with "something creative and bring in some things that don't force an actual head-on collision."

House Majority Leader Morgan Griffith, R-Salem, said GOP lawmakers are getting mostly positive responses to the bill. Griffith said Republican delegates typically contact him if they encounter a public backlash on major legislation.

"The various delegates around the state are not calling me up saying, 'Oh my gosh, we've got to do something about this, I'm getting beat up on it back home,' " Griffith said.