Cost Control

Gov. Arnold Schwarzenegger vowed Wednesday to let California government come to a "grinding halt" rather than agree to a high-interest loan to keep the state afloat if he and the Legislature do not close the yawning budget gap in coming weeks. At the same time, the governor reversed himself on a proposal to end health insurance for families of police officers and firefighters who died in the line of duty.

Gov. Arnold Schwarzenegger and lawmakers scrambled Wednesday to avert a financial meltdown, and public officials across California braced for annihilating cuts on the day after voters trounced their leaders' rescue plan for the state. Within two hours of returning from Washington, D.C., the governor huddled behind closed doors with Democratic and Republican legislative leaders to grapple with a projected $21.

A decade ago, big banks and thrifts began closing branches in the belief that clicks would replace bricks as customers moved their business online. But consumers weren't ready, and the experiment was soon abandoned. Now the old model may finally be changing. Bank of America Corp.

Facing deep funding cuts during the economic downturn, increasing numbers of school districts nationwide are contemplating trimming the traditional school week to four days to save money. A four-day week has long been confined to a few small rural districts looking to save on fuel costs. Indeed, many of the districts thinking of shaving a day off their weekly calendar have small enrollments -- such as the 940-student district in Bisbee, Ariz.

Thousands of teachers and other union members rallied Thursday at Pershing Square in downtown Los Angeles to oppose state and local cuts to education that are widely expected to result in larger classes for students as well as layoffs and more expensive healthcare. Most of the rhetoric blistered Gov. Arnold Schwarzenegger and his proposed budget, but speakers also took aim at the Los Angeles Unified School District and schools Supt. Ramon C. Cortines. "Mr.

As lawmakers wrangled last week over how to plug California's giant deficit, the governor who once called them "girlie men" sent the state Senate leader a package that has some Capitol insiders tsk-tsking over what they see as an ill-timed display of machismo. The gag gift from Gov.

One of the state's largest employers, healthcare giant Kaiser Permanente, said it would eliminate more than 1,800 positions as it struggles with drooping membership, uncertain healthcare reform and shriveling Medicare reimbursement rates. Job reductions will occur within the next few months, the Oakland-based nonprofit said Tuesday. Many of the purged positions -- just under 2% of Kaiser employees -- are temporary, on-call or short-hour. Most Kaiser medical centers in California will be affected.

The Los Angeles Board of Education on Tuesday approved nearly $1.6 billion in cuts over the next three years that will result in layoffs and increased class sizes and could one day mean the elimination of such key programs as all-day kindergarten and summer school.

When the 120th Rose Parade rolls onto Colorado Boulevard this morning, the really valuable seating will be the free spots on the sidewalk, as the venerable parade and bowl game take a recessionary hit -- albeit one that New Year's revelers are taking with the day's trademark optimism. The spectacle of flower-festooned floats, marching bands and, of course, the daintily waving Rose Queen and her court is expected to draw tens of thousands of spectators and countless television viewers.

There are million-dollar mansions in foreclosure, layoffs on Rodeo Drive. And reservations are no longer a must at all but the most exclusive restaurants. As recently as the summer, many wealthy Southern California enclaves appeared beyond the reach of the worst recession in decades. But rich cities, it turns out, aren't always so different from the rest.