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Efforts To Close Calif. Budget Deficit Stalled

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Jul 8, 2009 11:14 am US/Pacific

Efforts To Close Calif. Budget Deficit Stalled

SACRAMENTO (AP) ― Negotiations over closing California's $26.3 billion deficit were on hold as Gov. Arnold Schwarzenegger and Democratic legislative leaders had no formal plans to meet.

Instead, the Republican governor planned to meet Wednesday with legislative leaders of his own party.

Democrats were upset that Schwarzenegger demanded reforms to welfare and social service programs as part of any budget-balancing deal. The governor's office said his proposed reforms would save taxpayers $1.7 billion a year, a figure disputed by advocates for the poor.

Later Wednesday, Schwarzenegger scheduled a news conference to discuss his proposal to drop welfare recipients if they cannot show they are training or looking for work.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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