Calif. Finally Forges Budget Deal

(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) - California Gov. Arnold Schwarzenegger today declared a fiscal emergency and ordered lawmakers to produce a plan to close the state’s $24.3 billion deficit within 45 days, the San Francisco Chronicle reports. To accomplish that, Schwarzenegger called a special session of the legislature, and also ordered 220,000 state employees to take a third additional furlough day each month. 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»

(NEWSER) - The leader of California's Senate says he'll take Gov. Arnold Schwarzenegger to court for using line-item vetoes to slash another $500 million from the budget deal he was sent last week, the San Francisco Chronicle reports. Democrat Darrell Steinberg accuses Schwarzenegger of overstepping his authority by making the cuts. "We elected a governor, not an emperor," Steinberg says, warning that the balance of power in the state is being upset. More»

Gov defends stance amid standoff

(NEWSER) - Tensions are soaring in California as Gov. Arnold Schwarzenegger faces off against Democratic lawmakers in the state’s budget crisis. But the governator is keeping calm as he defends his position, the Financial Times reports. He’s calling for welfare reform before he’ll sign off on a budget, but Dems say now’s not the time. “If you can’t get them to cut down the costs of government when the state is facing such a financial crisis, then it’s never going to happen,” said Schwarzenegger. More»