California daily news roundup |
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By Michael Rothfeld and Shane Goldmacher, Los Angeles Times
After trying for weeks to fix a state budget gone out of control, Gov. Arnold Schwarzenegger and state lawmakers stood frozen in conflict Wednesday with the state at the brink of a meltdown.
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By Matthew Yi, San Francisco Chronicle
A missed deadline worsened California's budget crisis Wednesday by $2 billion - and now, the fiscal hole will deepen by millions each day that a solution is not passed.
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Stimulus eases community college troubles
By Kimberly Leonard, Special to Stateline.org
States are digging into their federal stimulus money to help finance community colleges, where rising tuition, soaring enrollment and budget cuts threaten to shut students out of the system.
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Weekly wrap: Report questions states' use of stimulus road funds
By John Gramlich, Stateline.org Staff Writer
States are spending too much stimulus money on new road construction and not enough on public transit projects, a national advocacy group claims in a report issued Monday (June 29). Meanwhile, Michigan and California consider teaming up to solve their prison problems and North Carolina and Rhode Island face off with Amazon.com over taxes.
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Strapped states play for time as fiscal year starts
By Stu Woo and Sabrina Shankman, The Wall Street Journal
California's top accountant said the state would begin issuing IOUs to hundreds of thousands of creditors after lawmakers failed to meet its deadline this week to close a massive budget deficit.
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State IOUs to bring uncertainty
By James P. Sweeney, The San Diego Union-Tribune
For only the second time since the Great Depression, California prepared yesterday to start paying bills with IOUs as likely recipients braced for the fiscal uncertainty ahead.
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Rival states hope California's economic woes will send businesses their way
By Dale Kasler, The Sacramento Bee
California's budget crisis is turning into a worldwide spectacle that could harm the state's business climate – and chase companies away. Rival states are revving up their economic-development efforts as global news outlets fixate on the $26.3 billion deficit and the IOUs the state is expected to issue today.
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The State Worker -- 'Furlough Fridays' for all? Not so fast
By Jon Ortiz, The Sacramento Bee
Most state employees started work Wednesday morning knowing that their pay in coming months will be nearly 5 percent less than June's, since Gov. Arnold Schwarzenegger has added a third monthly furlough day to the two they've endured since February. That's right, "most."
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Frustration reigns as budget crisis deepens
By Brian Joseph, The Orange County Register
A day after state lawmakers and the governor missed their budget deadline, resolution appeared nowhere in sight as the projected deficit grew to $26.3 billion and a distraught Assembly Speaker Karen Bass stormed out of a closed-door meeting with state leaders.
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Path clears for federal support of fast train to California
By Lisa Mascaro, Las Vegas Sun
WASHINGTON — The U.S. Transportation secretary will announce today the designation of a federal high-speed-rail corridor between Las Vegas and Southern California, a major assist that enables the long-imagined train route to compete for $8 billion in economic recovery funding and other federal support, the Las Vegas Sun has learned.
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Schwarzenegger hopes IOUs sway budget debate
By Kevin Yamamura, The Sacramento Bee
If the stigma of issuing IOUs triggers a budget deal in the coming days, Gov. Arnold Schwarzenegger might find redemption in his strategy of quashing a stopgap solution that would have avoided those non-cash payments.
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N.H. among states hit by E. coli in beef
By The Associated Press, Burlington Free Press
WASHINGTON — At least 12 people, two of them suffering kidney failure, have been hospitalized in connection with a possible E. coli outbreak in beef suspected of having sickened people in nine states, federal health officials said Wednesday.
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$2 million settles kickback
By Andrew McIntosh, The Sacramento Bee
A California financial company on Wednesday agreed to repay $2 million to New York state's giant public pension fund after one of the company's former partners was implicated in paying a kickback to secure investment deals from the fund.
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Coming to 25 states -- higher taxes
By Mark Trumbull, The Christian Science Monitor
More than half of US states are responding to budget challenges with an answer that's often unpopular with their residents: tax hikes.
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State budget woes worsen as deadline arrives
By Deborah Tedford, National Public Radio (Audio)
States across the country got their 2010 fiscal years off to a bumpy start Wednesday, as some faced shutdowns with their budgets in limbo and others braced for deep cuts after passing bare-bones plans to deal with recession-driven revenue shortfalls.
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Facing deficits, some states cut summer school
By Sam Dillon, The New York Times
COCOA, Fla. — Nearly every school system in Florida has eviscerated or eliminated summer school this year, and officials are reporting sweeping cuts in states from North Carolina and Delaware to California and Washington.
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