Despite Sleepless Nights, State Still Has No Budget

The California Senate has adjourned without a budget agreement, leaving in doubt a $14.4 billion tax increase bill that is a key part of the state's effort to erase a $42 billion budget deficit.

Senate leader Darrell Steinberg angrily brought the session to a close Sunday night after a Republican lawmaker complained that the package of spending cuts, tax hikes and borrowing designed to erase the deficit had been put together in secret.

Steinberg said the Senate would continue to meet daily until it broke the deadlock.

He said the Assembly was ready to approve the tax increases, but that Republicans weren't willing to supply the votes need to approve the legislation in the Senate.

Copyright AP - Associated Press
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