The holdup has been over how to fix a $15 billion deficit. Republican Governor Schwarzenegger and democrats at the State Capitol want to make billions in cuts, but they also want a temporary one cent sales tax.
Republicans don't want to add any new taxes. They prefer borrowing from lottery money and making more cuts to social programs.
Assm. Karen Bass, (D) Assembly Speaker, says "We've borrowed and played tricks over the years and we've essentially run out of things to do, so we're in a situation now where we have to identify a revenue package because we can't balance the budget with $15 billion in cuts."
The budget delay kept democrats from attending the national convention last week, and most state republicans say they won't go to their convention this week either.
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