Governors, Budget Deficit | featured news

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.

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.

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.

A judge on Friday declined to force the state controller to comply with an order by Gov. Arnold Schwarzenegger to pay state workers minimum wage while the state remains without a budget.

Gov. Arnold Schwarzenegger of California called for eliminating California’s welfare-to-work program, one of the deep cuts he proposed to close a $19 billion budget deficit in the coming fiscal year.

On the recession's front lines, governors are struggling to chart the road ahead for states staggered by unrelenting joblessness and cut-to-the-bone budgets even as Washington reports signs of economic growth.

"The worst probably is yet to come," warned Gov. Jim Douglas, R-Vt., chairman of the National Governors Association, at the group's meeting Saturday. He called the situation "fairly poor" in most states, adding that it "doesn't look too good."

California Governor Arnold Schwarzenegger and lawmakers failed on Wednesday night to agree to balance the state's budget by closing a $26.3 billion deficit, but officials said talks would continue.