Despite an improving economy, the state is expected to face another multibillion deficit next year.
A nonpartisan report due out next week will likely call for deep spending cuts or tax increases to resolve a continued spending imbalance.
The Legislative Analyst´s Office warned in September that the state deficit next year would be at least 6 billion dollars.
But because of funding agreements reached last summer, the L-A-O said the number would likely be even higher.
Lawmakers are not expected back in the Capitol until session renews in December.
The budget issue will likely be a major focus.
Governor Schwarzenegger has said he will not support any tax increase to deal with the deficit.
He said incoming revenues are improving but not enough and that the solution will come from spending cuts.
The governor´s budget proposal is due January 10th.