Gov. Arnold Schwarzenegger and legislative leaders planned to meet again to try to agree on a plan to address California's $26.3 billion budget deficit.
The Republican governor and the Legislature's top four leaders scheduled a meeting Tuesday afternoon in the governor's office - their first session since meeting for about six hours on Sunday.
All sides reported making progress then for the first time in weeks.
Meanwhile, one of Schwarzenegger's campaign committees began running a television ad in which the governor says he won't agree to raise taxes to help erase the state's red ink.
The Legislature has until the end of August to balance the budget for the current fiscal year before jeopardizing paychecks for government employees and others.
