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Budget Talks To Resume In Sacramento

Sacramento, CA — Gov. Schwarzenegger says he´ll meet today with legislative leaders in hopes of reaching a deficit-cutting agreement that would save the state from having to issue IOUs.

The governor and Democrats want a combination of spending cuts and tax increases to deal with a deficit that is projected to reach $42 billion over the next 18 months, but Republicans continue to balk at any talk of tax hikes.

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