California, Budget Deficit | featured news

Stagnant revenue and rising employee costs threaten City Hall with a $222-million shortfall, official says. A proposal to outsource ambulance services provokes anger from firefighters union. Los Angeles' top budget official raised the specter of bankruptcy Friday in a sweeping report that calls for new taxes, possible layoffs and the privatization of some city services.

Gov. Jerry Brown was elected on a pledge to break legislative gridlock by changing Capitol culture, and he showered state lawmakers with attention as he tried to forge a bipartisan compromise to fix the state's chronic financial mess.

Tax income has been outpacing forecasts — good news as Sacramento struggles with a $15-billion budget deficit. GOP leaders are already using it as fodder against Gov. Brown's proposed tax increases.

Gov. Jerry Brown plans to hit the road next week, taking his case for more taxes directly to voters following the collapse of budget negotiations in Sacramento this week.

The billions of dollars in cuts to government services signed into law by Gov. Jerry Brown address a portion of the estimated $26-billion deficit facing California. Brown is still negotiating with Republicans on a proposal to put tax extensions before voters.Gov.

Officials in Costa Mesa say they are just trying to solve a budget problem, but some see a political motive.

California Governor Jerry Brown will declare a state of fiscal emergency on Thursday for the state's government to press lawmakers to tackle its $25.4 billion budget gap, according to a spokesman.

The agreement that lawmakers are scheduled to vote on Thursday would close the $19.1-billion shortfall by trimming salaries, public school funding and services.

Gov. Arnold Schwarzenegger and state lawmakers ended talks Thursday night without reaching a deal on how to close California's $19 billion deficit, breaking a state record for the longest budget impasse.

As the Terminator, Arnold Schwarzenegger was the technology of the future, feared by humans. As governor, he's being foiled by the technology of the past.

For the second time in two years, Schwarzenegger has ordered most state workers' pay cut to the federal minimum wage because lawmakers missed their deadline to fix the state's $19 billion budget deficit. The Legislature's failure to act has left the state without a spending plan as the new fiscal year begins.