State Democrats and Republicans remain at odds over a more than $15 billion budget deficit. Democrats want to impose tax increases while Republicans favor spending reductions to balance the budget.
State Senate President Don Perata, a Democrat, said it will take a number of weeks before a budget is agreed upon.
"Now is the time for us to say 'whatever sacrifice we're going to have to make, we're going to take,'" Perata said. "Now, we're going to force that issue and if we have to be here until the state goes into bankruptcy and the Republicans are going to cause that to happen , that's fine."
State Republican leaders have said that they will not vote for any budget proposals that include tax increases.
A two-thirds majority is needed to pass the state budget, followed by the governor's signature.