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Drawn-Out California Budget Standoff Bewilders Schwarzenegger


Governor Arnold Schwarzenegger says there have been some frustrating moments in budget negotiations. His offers have so far not brought about the two Republican votes needed to pass a spending plan in the state Senate. He spoke Thursday after Wednesday night's failed vote. From Sacramento, Jenny O'Mara reports.

Governor Schwarzenegger says he's offered to cut hundreds of millions of dollars in spending using his line-item veto authority. He says he's met with Senate Republican Leader Dick Ackerman -- but remains mystified over a solution.

Schwarzenegger : And we talked about again what is the thing? Because I still don't know. What is the thing that you need to close this? Please tell me.

Senate Republican Leader Dick Ackerman says more spending cuts are necessary to reach agreement, but they're not the only thing. He says other issues to be worked out include use of state environmental laws and how bond money will be spent.

The Governor is urging Senators to reach agreement sooner rather than later -- before Assembly members return from their summer recess later this month.

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