No sign of progress in closing Calif’s $26B shortfall after key lawmaker left negotiations

SACRAMENTO, Calif. — Negotiations aimed at closing California’s $26.3 billion deficit remained frozen Tuesday, a day after a top Democratic lawmaker walked away from the talks.

Attempts to close Calif’s deficit stall as key Democrat criticizes governor’s approach

SACRAMENTO, Calif. — Attempts to close California’s widening budget deficit appeared to veer off course Monday after one of the key Democratic leaders sat out a top-level meeting amid frustration over the direction of the talks.

As budget deficit grows, cash-strapped California prepares to issue IOUs

SACRAMENTO, Calif. — California’s controller will start paying many of the state’s bills with IOUs as soon as Thursday after lawmakers failed to close the state’s worsening budget deficit, adding a new measure of indignity to a state sinking deeper into dysfunction.

Schwarzenegger declares fiscal emergency in California, orders offices closed 3 days a month

SACRAMENTO — Gov. Arnold Schwarzenegger has declared a fiscal emergency to address California’s deficit and has ordered state offices closed three days a month to save cash.

As fiscal year ends, lawmakers in Calif. and other states race to keep governments running

SACRAMENTO, Calif. — Legislators in more than a half-dozen states, their revenues evaporating in the recession, frantically worked to stave off government shutdowns and devastating service cuts. California failed to meet a midnight deadline and now may need to issue IOUs instead of paying bills.

Calif. budget deadline looms as lawmakers make no progress on fixing $24.3B state deficit

SACRAMENTO, Calif. — A midnight deadline loomed Tuesday as California lawmakers and Gov. Arnold Schwarzenegger dueled over ways to cut into a $24.3 billion budget deficit or face having to issue IOUs to cover the state’s bills.

Compromise over California budget deficit remains elusive with IOUs just days away

SACRAMENTO, Calif. — The California Senate has approved a Democratic budget that faces a certain veto from Republican Gov. Arnold Schwarzenegger as the state heads toward issuing IOUs.

California controller says issuing $3 billion in IOUs a sign of fiscal mismanagement

SACRAMENTO, Calif. — Thousands of Californians will be hurt and it will cost millions if the state is forced to hand out IOUs instead of payments next week, the state controller said Friday. The IOUs could come as soon as next Thursday, yet lawmakers remained no closer to a budget compromise.

California controller says issuing $3B in IOUs a sign of fiscal mismanagement

SACRAMENTO, Calif. — Thousands of Californians will be hurt and it will cost millions if the state is forced to hand out IOUs instead of payments next week, the state controller said Friday. The IOUs could come as soon as next Thursday, yet lawmakers remained no closer to a budget compromise.

Calif. lawmakers remain deadlocked over solving budget crisis; IOUs expected next week

SACRAMENTO, Calif. — California lawmakers remain at an impasse over solving the state’s $24.3 billion deficit as the state controller prepares to hand out roughly $3 billion in IOUs.

California lawmakers fail to pass stopgap measure to avoid IOUs, budget deal remains distant

SACRAMENTO, Calif. — Republicans in California’s Senate have blocked a complicated cash-saving maneuver intended to help the state avoid issuing IOUs for services provided by thousands of independent contractors.

As fiscal crisis looms, Calif lawmakers fail on first legislative vote to close $24B deficit

SACRAMENTO, Calif. — A Democratic plan to begin closing California’s $24 billion budget deficit failed Wednesday, as legislative leaders planned to work through the weekend to avoid a cash crisis when the new fiscal year starts next week.

Calif. lawmakers debate budget fix as state controller warns of IOUs as early as next week

SACRAMENTO, Calif. — Lawmakers have begun a sharp debate about a Democratic plan to close California’s projected $24 billion deficit but a quick resolution seems unlikely.

Calif. Legislature to vote on Democratic budget plan, even as governor warns he won’t sign it

SACRAMENTO, Calif. — Lawmakers scheduled a Wednesday vote on a Democratic proposal to close part of California’s $24.3 billion budget deficit, but the plan appears doomed to fail.

Schwarzenegger threatens to veto any budget plan from Legislature that includes higher taxes

SACRAMENTO, Calif. — Gov. Arnold Schwarzenegger on Wednesday fired off a warning to Democratic lawmakers who are considering raising taxes to solve California’s budget problems: Don’t even try.

Democrats want higher taxes, fewer cuts to close California’s $24.3 billion deficit

SACRAMENTO, Calif. — An emerging Democratic plan to address part of California’s $24.3 billion deficit appears unlikely to win support from the governor and GOP lawmakers, raising the prospect of another prolonged deadlock that could jeopardize the state’s finances.

Schwarzenegger says Calif. budget crisis dire, but provides chance to remake government

SACRAMENTO, Calif. — California’s worsening budget crisis holds both pain and promise, Gov. Arnold Schwarzenegger told lawmakers Tuesday as he urged them to quickly solve the state’s fiscal mess.

Schwarzenegger asks lawmakers to set aside bickering and quickly solve budget deficit

SACRAMENTO, Calif. — Gov. Arnold Schwarzenegger told a joint session of the Legislature on Tuesday that California’s budget crisis will require a transformation in state government.

Schwarzenegger to address lawmakers, will ask them for quick deal to solve $24B shortfall

SACRAMENTO, Calif. — California Gov. Arnold Schwarzenegger is ready to urge lawmakers to deal quickly with California’s enormous deficit.

Schwarzenegger says next year’s budget deficit is $15B; will climb if voters reject measures

SACRAMENTO, Calif. — Gov. Arnold Schwarzenegger is warning that California faces a $15.4 billion budget deficit in the coming fiscal year, nearly double the previous estimate.