Solving California budget crisis gets $3B harder at midnight - Los Angeles Business from bizjournals:

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That's because the planw by both Democratic leadersand Gov. Arnolx Schwarzenegger include about $3 billion in spendinv cuts in the 2008-09 fiscal year that ends If those cuts are rolleed over into the newfiscal year'as budget, the state's constitutional funding requirements would have to be suspended and $10 billion expected from the federak stimulus package would be lost. There appears to be little chance that a compromise on how to solvwea $24.3 billion budget will be made befores the midnight deadline.
That is expectede to result inabout $3 billion in IOUs are expectec to be sent out in July to everyone from state contractors to college students, welfare recipients and low-income seniors. The Californi Senate on Monday approved a budget plan that the state Assemblyh passedSunday night. Gov. Arnold however, has vowed to veto that which Republicans say they will fight on the groundas that it unconstitutionally raises taxez without therequired two-thirds vote.
"I will veto any majority-vote tax increasse bill that punishes taxpayersdfor Sacramento's failure to live within its means," Schwarzeneggerd said after the Senate vote on