State Budget Deadline Passes, Consequences Ensue

Monday, Feb 2, 2009  |  Updated 5:29 PM PDT
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Calif. Still Financially Woeful

Sign outside the governor's office in Sacramento

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Calif. Still Financially Woeful

Some Republicans are urging the state controller to issue tax refunds now, even though California is running out of cash.
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Some of the latest headlines stemming from California's budget crisis...

DEADLINE COMES, GOES

Gov. Arnold Schwarzenegger and legislative leaders plan to meet again Monday as they search for a $42 billion solution to the state's budget woes. Lawmakers have failed to resolve differences over how to deal with the budget deficit, and they missed a self-imposed, end-of-January deadline.

WAITING FOR STATE REFUND

Taxpayers awaiting a state refund, local governments and students on financial aid are among those who'll be waiting at least 30 days for a reimbursement from California. State Controller John Chiang (chung) has the non-essential payments for at least 30 days because of a cash crisis. Gov. Arnold Schwarzenegger and state legislators haven't come up with a solution to the state's multi-billion-dollar budget shortfall.
 
CONSTRUCTION STOPPED AT DEAF SCHOOL

The state budget stalemate has forced a halt to $60 million in construction work at the California School for the Deaf in Riverside. New dorms and an activity center there were among the projects halted by a state board last month. California is on the verge of running out of cash, and state leaders say they're worried about paying the bills. The existing dorms date to the 1950s.
 
RECORD NUMBER OF UNEMPLOYMENT APPEALS

A record number of Californians are appealing to a state board after being rejected for unemployment benefits of up to $450 a week. The U.S. Department of Labor says just 4 percent of complaints are reviewed within 30 days, the required timeline for the Unemployment Insurance Appeals Board. A record 68,000 out-of-work people and employers were awaiting action by the board at the end of January. (NBCLA.com)
 
STATE'S LARGEST TEACHERS UNION LAUNCHES AD CAMPAIGN

The state's largest teachers union has launched a new TV ad targeting Gov. Arnold Schwarzenegger and legislative leaders who are trying to negotiate a solution to California's $42 billion budget shortfall in the next 18 months. The ad says they're trying to scrap the state's class-size reduction program. The leaders have discussed letting school districts have more flexibility in how they spend state money.

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