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Lawmakers Fail To Settle Budget Dispute

Sacramento, CA — Lawmakers in Sacramento are taking a breather before returning to the drawing board to hash out a state budget.

Legislative leaders met for nearly four hours Sunday to no avail. Governor Schwarzenegger and Republican leaders of the senate and assembly are reportedly at odds with legislative Democrats over the way an additional $4 billion in unexpected revenue is spent.

Republicans are seeking to spend the money on education and health care while Democrats want to spend about a billion dollars more on those services.

Republicans say they don´t think the state can afford that amount without proposing new taxes.

Negotiations are expected to resume tomorrow.