Senate GOP leaders say their plan—unlike the one approved by the Assembly-- doesn’t spend more than the state takes in.  They’ve issued a list of more than 800-million dollars in cuts.   They include reducing welfare to work grants, and slashing state funding for drug treatment programs—under Proposition 36. Democratic leader Don Perata says Republicans are holding things up. 

 “It appears to me that what the Republicans couldn’t get across the negotiating table.  They’re going to try fiscal terrorism…”

But Republican Senator Dennis Hollingsworth says more must be done to eliminate future budget gaps.  

 “We have a tremendous problem next year that we need to begin dealing with as soon as possible and we can’t exacerbate that problem by passing what was presented by the Assembly.” 

 The state budget is now nearly a month overdue.