The state won’t be able to pay its bills for services provided after July first, and state elected officials won’t get a paycheck. That’s what will happen if budget negotiations drag through the month of July. Among the sticking points-- Republicans say they’re worried about a continuing deficit—and that more needs to be done to reign in spending. They say a two-house conference committee budget proposal is about two billion dollars out of balance. Democratic Assembly Budget Committee Chairman John Laird says there’s not much more to cut:
“I’m sure we can find some places to meet in the center on some of the remaining issues but the draconian cuts Republicans are requesting are just not going to happen.”
It’s now up to legislative leaders and the Governor to hash out a final agreement. Schwarzenegger presented his revised budget in May.