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Little progress reported on state budget

July 05, 2009|Associated Press

SACRAMENTO — California lawmakers have little to celebrate this Fourth of July as talks continue on how to close the state's deficit.

Little progress was reported Saturday, and the Legislature is not expected to meet until Monday.

Gov. Arnold Schwarzenegger and lawmakers are trying to bridge a $26-billion shortfall. Earlier this week, the state began issuing IOUs, and state employees received additional furlough notices.

In his weekly radio address, Schwarzenegger pressed for a streamlined government, saying the state can no longer offer services that it can't afford.

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