AUSTIN, TEXAS - Saying he hopes to leave office with a clean slate - and a clear conscience - Gov. Parris N. Glendening has developed a plan to leave Gov.-elect Robert L. Ehrlich Jr. with a "hefty reserve" by eliminating the deficit in this year's budget.

Meeting at the National Governors' Association conference here, Glendening told Ehrlich of his plans last night during an hour-long meeting. The two cast aside their stark political differences and discussed the state's fiscal situation and the governor's hopes that the new Republican administration does not cut some of his beloved programs.

Ehrlich and the governor refused to discuss the details of the governor's plan to close the deficit, which Glendening estimates to be about $500 million. The details will be released later this week after Glendening informs legislative leaders and cabinet secretaries of the specifics.

"I outlined a plan for him so that we leave this budget totally in the black, no deficit and a very hefty reserve," Glendening said after the meeting. "It was a very productive hour. I would think it is exactly what the voters would expect of each of us when it comes to meeting our responsibilities."

Ehrlich said Glendening's proposal was "solid" and would go a long way toward easing the state's financial strain.

"It is very clear he wants to leave a clean slate and he wants the budget to be in balance when he leaves office," Ehrlich said. "I'm very appreciative of not only that goal but his willingness to reach that goal."

Glendening said the proposal would involve "some cuts" and "a mixture of different approaches." He said the plan did not involve additional taxes but refused to comment when asked if it involved taking money from the state's $500 million Rainy Day Fund.

Ehrlich and Glendening met during a meeting designed to be an orientation for the nation's 22 newly elected governors.

This year's gathering is being held under a cloud of apprehension as governors across the country grapple with large budget deficits because of the weak economy. Glendening, former chairman of the National Governors' Association, said 45 states have budget shortfalls.

Even with Glendening's proposal, Maryland still faces significant budget problems in coming years. Legislative analysts predicted recently that the current year's deficit is $590 million. Glendening disputed that number last night, saying he believes the deficit is $498 million - which is the amount he intends to come up with.

Glendening has the authority to order agencies not to spend portions of their budget. Other budget actions may require approval of the Board of Public Works or the General Assembly in next year's session.

Ehrlich, who will take office in January, still must come up with a strategy for closing next year's shortfall, which is estimated to be $1.1 billion. Legislative analysts and fiscal experts said drastic measures - such as cutting all state employees' salaries by 1 percent, slashing scholarship programs or increasing the state's sales and property tax rates - may be necessary to close that deficit.

Ehrlich has ruled out additional taxes and said he does not plan to cut aid to local governments to balance the budget. He and his staff will work on a comprehensive budget proposal in coming weeks, he said yesterday.

In the meantime, Ehrlich said last night that Glendening's proposal for dealing with this year's deficit will make his job much easier.

"A lot of the savings achieved this year carry over to next year, so in that sense it could be extremely helpful to us," Ehrlich said.

Glendening also spoke with Ehrlich on the importance of protecting the administration's commitment to the environment, higher education and infrastructure.

"The differences do not seem to be that pronounced," Glendening said, adding that Ehrlich "understands the importance of the environment and the importance of higher education."

Earlier in the day, Ehrlich gave Glendening lukewarm assurances that the governor's Smart Growth initiatives - a hallmark of his administration - will continue. Ehrlich said initiatives such as Program Open Space and Rural Legacy Grants "are proven winners" that "will just be a general part of government."

But the governor-elect said he would evaluate how much state money is earmarked for the programs, which are designed to reduce urban sprawl by protecting undeveloped land. Ehrlich has said he wants to study the state's role in overruling local zoning decisions because of Smart Growth policies.

"Part of this is going to be driven by the budget, part by the efficiency we can receive," Ehrlich said.

Glendening said, "I take Bob at his word that he supports the environment."

The comfortable relationship between Glendening and Ehrlich - who defeated Lt. Gov. Kathleen Kennedy Townsend on Nov. 5, in part by blasting the governor on a daily basis - has been one of the stranger subplots of the transition.

The day after the election, Ehrlich rescinded his campaign pledge to support a special session of the General Assembly to address the budget deficit after Glendening called him and assured him that such a session would not be necessary. In the same conversation, the two talked about the nursery in the governor's mansion and whether Ehrlich's son would like the Winnie-the-Pooh painted on the wall for Glendening's infant daughter.

Yesterday, the friendly banter continued when the two saw each other between seminars.

"If you need anything, please, please let me know," Glendening said during one brief encounter yesterday afternoon.

"You and your staff are terrific," Ehrlich replied.

Glendening then praised the appointments Ehrlich made to his transition team Friday, saying they were "excellent."

Earlier yesterday, Glendening made sure Ehrlich wasn't going to leave town before buying his son, Drew, a souvenir. The governor-elect plans to go shopping today. Glendening said he bought his baby daughter "a real neat" stuffed bumblebee.

Ehrlich's tone yesterday was a far cry from his campaign theme that Glendening was the symbol of reckless government spending and was responsible for clogged highways, crime and "a culture of corruption in Annapolis." Ehrlich even aired several campaign commercials that mocked the governor while attempting to tie him to Townsend - who has blamed her loss, in part, to her association with Glendening.

Glendening said yesterday that he holds no grudge against Ehrlich. "I always recognize that campaigns are run vigorously, and the idea is to win," Glendening said. "Bob ran a good, vigorous campaign, and he won. And the voters expect us to have a very smooth transition of power."

Sun staff writer Howard Libit contributed to this article.