State lawmakers voted on another budget proposal and for the fourth time, it failed.
Governor Schwarzenegger met individually with each party's caucuses, a rare move, but the state is in unchartered territory, operating now for more than 2 months without a budget.
"I'm insisting on bringing both parties, Democrats and Republicans, together because this does not work with this partisanship. We got to be more bi-partisanship, more post-partisan," said Gov. Arnold Schwarzenegger (R) California.
The partisanship is what has kept lawmakers from reaching a compromise on a state budget that was supposed to be in place by July 1st.
Critical services are now running out of money and closing their doors. After four unsuccessful budget votes, Assembly Speaker Karen Bass thinks it may be time to vote on the Governor's temporary one-cent sales tax increase.
"We will consider voting on his budget tomorrow," said Bass.
Despite the long odds of his budget passing, the Governor remains optimistic he can get Republicans to agree to a tax increase and Democrats to accept more cuts.
Governor Schwarzenegger: "It's not over yet."
ABC7's Nannette Miranda: "But it's not working."
Governor Schwarzenegger: "It's not working up until now, but it will be working. Remember, all big things take a lot of work."
ABC7's Nannette Miranda: "Even though you are taking a lot of hits for the latest budget ever?"
Governor Schwarzenegger: "That's perfectly fine. It's like anything else. When you are governor, it's like anything. When you're in charge, then the buck stops here."
Because the buck does stop at the top, true to its word, the prison guard union delivered to the Governor's office, the recall petition to kick Schwarzenegger out of office for what members call his "lack of leadership."
He repeated he is not intimidated by the powerful, well-financed interest group.
"This Governor is different. They can't kick me around. They can try and try all they want. They can push. They can push. But I will push back," said Gov. Schwarzenegger.
A move to pass an emergency funding bill just for critical services is gaining some momentum. Politicians are feeling the heat, as more daycare and medical services close down without state funding coming in.