State budget standoff continues

September 2, 2008 3:56:55 PM PDT
Despite a Labor Day meeting, state lawmakers still haven't reached an agreement on the state budget.

The state Senate met for an hour during the holiday yesterday, but remain deadlocked over how to deal with the state's $15.2 billion deficit. California is now a record three months into the fiscal year without a spending plan.

Democrats and Republican Governor Schwarzenegger have proposed a combination of cuts and tax increases to try to erase the deficit. But Republican lawmakers have balked at approving any tax hikes.

Republicans are expected to present their own plan at the end of the week.


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