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California Still Without Budget

California is racking up billions of dollars in unpaid bills as it approaches two months without a state budget, and there's little hope in Sacramento that a deal will get done this week even though a vote on two competing budget plans is scheduled.

Incoming Senate Republican leader Bob Dutton blames the Democratic majority.

"The reality is they've wasted so much time that we've missed a lot of good opportunities," he said.

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But State Senator Leland Yee of San Francisco says Republicans want to make draconian cuts to welfare programs that California just can't stomach. Tomorrow, the legislature will vote on that plan as well as the Democrats' plan, a complicated combination of taxes, fees, and budget cuts.

Neither plan to close the $19 billion deficit has enough votes to pass though, meaning California may have to start issuing IOUs again soon, since it can't pay its bills without a budget.

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