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Efforts to Close Calif. Budget Deficit Stalled

Negotiations over closing California's $26.3 billion deficit are on hold as Gov. Arnold Schwarzenegger and Democratic legislative leaders have no formal plans to meet.

Instead, the Republican governor plans a meeting Wednesday with legislative leaders of his own party.

Democrats are upset that Schwarzenegger has demanded reforms to welfare and social service programs as part of any budget-balancing deal. The governor's office says his proposed reforms will save taxpayers $1.7 billion a year, a figure disputed by advocates for the poor.

Later Wednesday, Schwarzenegger scheduled a news conference to discuss his proposal to drop welfare recipients if they cannot show they are training or looking for work.

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