Cash-Strapped Calif. May Shorten School Year

Facing $42B deficit, Schwarzenegger, state Dems continue to wrangle

(NEWSER) - Faced with a mounting budget gap and failed negotiations toward a solution, California may have to send out promissory notes to taxpayers owed refunds and local governments, the Los Angeles Times reports. Talks between Gov. Arnold Schwarzenegger and the Democratic legislature foundered yesterday; lawmakers sent the governor a disputed package of tax hikes and service cuts, which he promptly vetoed. More»

(NEWSER) - The California Legislature and Gov. Arnold Schwarzenegger are just steps away from an agreement that would close the state’s $26.3 billion deficit, the Los Angeles Times reports. Talks are expected to conclude today. “I don’t think there is anything that would make negotiations shut down at this point,” the Democratic assembly speaker says; a deal on contentious education cuts appears to be key. More»

(NEWSER) - Just how bad has California’s budget crisis gotten? So bad that it’s holding what it’s calling the “Great California Garage Sale” this weekend, hoping to unload piles of junk and wasteful property that the state’s accrued over the years. Hundreds of items will be available, from BlackBerrys to desks to cars and CHiPs motorcycles. Arnold Schwarzenegger has even signed some of the items to drum up interest. More»

(NEWSER) - A plan to slash the number of inmates by 27,000 could sink California's long-delayed budget deal, the Los Angeles Times reports. Angry Republican state lawmakers threatened to back out of the agreement after learning of the plan, which would give prison officials authority to let any inmate over 60 years old or with less than a year left on their sentences finish their time on home detention to save money. More»

Plan calls for massive cuts to close $26B budget hole

(NEWSER) - After weeks of wrangling, Gov. Arnold Schwarzenegger has made a deal with state lawmakers to close the $26 billion hole in California's budget, the Sacramento Bee reports. Leaders believe the plan—which involves massive spending cuts and borrowing from city governments—is solid enough to secure billions of dollars in short-term loans, allowing the state to stop issuing emergency IOUs. More»