State Budget Problems

July 1, 2008 12:00:00 AM PDT
The state's fiscal year begins Tuesday and there's still no budget.Republicans and Democrats in both houses of the State Legislature remain far apart on how to close the state's $15 billion dollar budget shortfall.

Republicans, including Governor Schwarzenegger, favor wide-ranging cuts to services and programs.

Democrats want to raise taxes by anywhere from $6 billion to $11 billion dollars.