And they had their work cut out for them: as they dealt with another budget deficit.
Governor Schwarzenegger said the only way to close the budget hole is to lay off state workers.
He made that decision after being told by a judge last week his move to furlough state workers is illegal.
Democrats think the hole can be closed by closing what they call budget loopholes for California businesses.
But republicans say they are against any move that will raise taxes.
"The problem at this point, the economy, trying to recover, all we've been doing is prolonging the recovery," said Assembly Member Roger Niello, (R) Fair Oaks.
Governor Schwarzenegger is set to unveil a specific list of budget proposals by the end of this week .
Senate president Darrell Steinberg hopes to have a vote on a budget fix in about five weeks.
