Fiscal Year Starts Without CA Budget

California is beginning its fiscal year today without a budget. The state Legislature and Governor Schwarzenegger are not close to an agreement to deal with the state's $19 billion deficit.

State finance officials say the lack of a budget is costing California $52 million each day. They say if a deal is not reached by the end of the month, the state's financial picture will get worse, possibly having to issue IOUs, stop infrastructure projects, and cut state employee pay.

Budget talks have moved behind closed doors. Late Wednesday, Senate president Pro Tem Darrell Steinberg and Assembly Speaker John Perez met with the governor and told reporters that they are on the same page and ready to step up the pace of negotiations.

Despite a budget plan, most Assembly members will be allowed to return to their districts for a month-long break that begins Friday. Steinberg is expected to announce today whether Senate members will be allowed to leave.