Budget Deficit, California Budget Deficit | featured news

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 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.

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.

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.

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.

Facing another huge deficit, the governor wants $8 billion or threatens massive cuts in social services. He also plans to renew push for offshore oil drilling.

California faces a nearly $21 billion budget gap over the next year and a half, extending a fiscal crisis that already has led to steep cuts to public schools, social services and health programs.

Gov. Arnold Schwarzenegger and the state's top legislators who are trying to close out a budget deal have canceled their planned meeting tonight because of an apparent scheduling snafu and will instead aim to meet...