Governor Schwarzenegger and legislative leaders continue to negotiate over a budget package aimed at wiping out the state´s existing deficit and putting a cap on future spending.
Democrats, who control both houses, say they are willing to consider the governor´s plan to borrow up to $15 billion, but they have problems with the proposed spending limits.
The governor wants both proposals to be placed before voters in the March election. He has said that the two measures will go a long way to balance the state´s spending and restore confidence from Wall Street that California is on the road to financial recovery.
The Legislature has until Friday at midnight to act to allow time for election officials to prepare ballots for the March election.