Lawmakers are still hammering out California budget:

07/17/2009 | NYTimes.com

California Gov. Arnold Schwarzenegger says a deal on the state budget is close, even though negotiations have reached a stalemate over education money. The governor has asked for the suspension of Proposition 98, which gives schools about 40% of the state's general fund, during the economic crisis. Democrats countered with a request for a guarantee that education funding would be restored in the future.

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