Democratic leaders have again left Gov. Arnold Schwarzenegger's office without a deal to close the state's $24.3 billion budget gap.
Schwarzenegger on Saturday met behind closed doors with Democratic leaders for about an hour as the deadline approaches for the state to start issuing IOUs to pay some of its bills.
The Republican governor pitched moneysaving proposals to change pension benefits and the way the state delivers some health and human service programs.
Democrats believe such policy changes should not be tangled up in the budget.
Without a solution, the state is slated to begin issuing $3 billion in IOUs on Thursday to vendors, students and low-income seniors and disabled people.
Copyright AP - Associated Press
