Democrats want a combination of tax increases and spending cuts. Republicans don't want new taxes, but they don't want to close tax loopholes either.
Governor Arnold Schwarzenegger laid-off 20,000 temporary workers and lowered the wages of state workers last week to highlight the budget trouble. Dozens of state workers protested the governor's decision outside his Los Angeles mansion on Sunday. Members of the Service Employees International Union - Local 1,000 marched, all wearing purple shirts.
Schwarzenegger wasn't home during the protest. He was in Sacramento at the time.