CALIFORNIA BROKE? State Could Run Out Of Money In Two Months, Says Official

Judy Lin
HuffPost

SACRAMENTO, Calif. — California's chief financial officer warned Monday that the state would run out of money in about two months as hopes of a Christmas budget compromise melted into political finger-pointing by the end of the day.

Republican Gov. Arnold Schwarzenegger began the day on a cheerful note, suggesting that negotiations with Democratic leaders could lead to a budget deal as early as this week to help close the $42 billion shortfall that is projected through June 2010.

"Yesterday we sat there for hours and we worked through it step by step and we made some great progress," the governor said during a morning news conference in Los Angeles. "So we feel like if we do that two more times like that, I think we can get there ... before Christmas Eve or Christmas Day."

The thaw didn't last long, as legislative leaders later in the day criticized Schwarzenegger and indicated their work was done until the start of the new year.

(More here.)