With a day to go until a cash crisis would force the state to stop
paying its bills, lawmakers and Gov. Arnold Schwarzenegger worked into
the night Tuesday but failed to reach a budget agreement.
The state Senate voted several times as midnight
approached in a last-ditch effort to approve $3.3 billion in cuts to
education and other programs and stave off, at least temporarily, the
IOUs that California Controller John Chiang is set to begin issuing
Thursday in lieu of some payments.
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