California Politics

Gov. Arnold Schwarzenegger is summoning lawmakers for a special session on the state's water problems, even as legislative negotiators ended nearly 12 hours of talks without reaching an agreement. The legislative leaders plan to meet with the governor again Monday for their seventh consecutive day of discussions. The governor said late Sunday that negotiators have made enough progress that he is calling a special session on water. He acknowledged that they still have a few remaining issues to work out. Legislative leaders said substantial issues remain — including the amount of a water bond to pay for improving the state's inadequate and outdated water ... Read Full Story

California lawmakers met again Saturday in hopes of reaching a deal to upgrade the state's decades-old water system, but left without resolving a handful of major outstanding issues. Lawmakers offered only lukewarm reactions to their four-hour meeting with Gov. Arnold Schwarzenegger Saturday, despite the governor's claim a day earlier that they were on the verge of a historic breakthrough on water. "Sadly, there's little in the way of progress," Assembly Minority Leader Sam Blakeslee, R-San Luis Obispo, said as he left the meeting. He said the latest proposal would "create a vast new government bureaucracy." The legislative leaders are trying to draft a plan ... Read Full Story

SAN FRANCISCO (Reuters) - California's general fund revenues for the first three months of its fiscal year were $1.1 billion below estimates in its budget, a sign the state's economic woes are far from over, Controller John Chiang said on Friday. The most populous U.S. state has suffered a steep drop in revenues this year in the face of the housing slump, credit crisis, financial market turmoil, surging unemployment and the recession. Chiang on Friday urged Governor Arnold Schwarzenegger and lawmakers to brace for hard choices to keep the state's books balanced should revenues weaken further. "While there are encouraging signs that California's economy ... Read Full Story

California Gov. Arnold Schwarzenegger said Tuesday he supports President Barack Obama's goals of overhauling the nation's health care system, putting him at odds with some fellow Republicans in Congress. In a statement, Schwarzenegger said he appreciated Obama's partnership with the states and his effort to hold down costs and improve quality. He urged lawmakers from both parties to "move forward and accomplish these vital goals for the American people." However, the moderate Republican did not endorse any of the Democratic-crafted bills in Congress. Schwarzenegger's comments come as the White House and Senate Democrats have been highlighting other statements of support from Republicans — though ... Read Full Story

California's state controller is warning that disappointing tax receipts will push the state into a bigger budget deficit than expected. A report released Friday by Controller John Chiang says state revenue is about $1 billion short of what lawmakers and Gov. Arnold Schwarzenegger expected when they reached a budget deal during the summer. The report says the biggest dip is in income tax, with receipts down about 11 percent. Chiang says the recession continues to drag state revenues down. Even before the controller's report, state leaders were bracing for more budget woes next year. The Department of Finance is anticipating a $7.4-billion deficit in ... Read Full Story