Arnold: Budget Crisis Is Not a Game of Chicken

(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»

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»

(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»

Says he'd like office to be 'glass house'

(NEWSER) - California Gov. Arnold Schwarzenegger wants another starring role onscreen—and he's looking to bring California’s legislators with him. The governator wants budget meetings televised or streamed online to show the public what gives, reports the Los Angeles Times. “A debate in front of the people” would “expose the problems and let everyone answer them,” he said. More»

(NEWSER) - Sure, California's going through a little financial Armageddon, but that's not keeping candidates from lining up to replace Arnold Schwarzenegger, who is prevented by term limits from running in 2010. In the New York Times magazine, Mark Leibovitch takes a look at the eclectic field, which includes Jerry Brown ("yes, that Jerry Brown"), San Francisco Mayor Gavin Newsom ("political thrill-seeker"), and former eBay chief Meg Whitman (who promises to provide "adult supervision" for once). More»