Feb 6, 2009 1:49 pm US/Pacific
No Agreement On Budget Despite State Furloughs
Governor, Lawmakers Fail To Agree On How To Close Deficit
SACRAMENTO (AP) ―
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The governor and legislators need to compromise on a plan to address a $42 billion shortfall.
AP
Even with state offices closed and transportation projects halted, Gov. Arnold Schwarzenegger and lawmakers have failed to agree on how to close the state budget deficit.
They are scheduled to resume talks Friday afternoon. The governor and the four legislative leaders need to compromise on a plan to address a $42 billion shortfall over the next 17 months.
Time is running out. Leaders missed a self-imposed Feb. 1 deadline to reach a deal. Since then, the state controller delayed tax refunds and other payments so the state could get through February without running out of cash.
But the same sticking points remain: Republicans oppose taxes, while Democrats aren't willing to make deeper spending cuts.
Schwarzenegger has been advocating a combination of both, plus billions in borrowing and measures to boost the economy.
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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