Schwarzenegger, legislative leaders reach budget 'framework'

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AP Photo/Rich Pedroncelli

Gov. Arnold Schwarzenegger discusses the legislature's failure to pass a state budget plan, during a Capitol news conference in Sacramento, Calif., Wednesday, Sept. 1, 2010. File photo.

The word today after a meeting in Santa Monica is that Governor Schwarzenegger and top legislative leaders have worked out what’s called a budget “framework.” But that doesn’t mean there’s a state budget deal.

The governor’s spokesman Aaron McLear says the “framework” could lead to a potential solution. The governor and the Democratic and Republican leaders in the legislature will continue talks next week.

KQED state capital reporter John Myers says there are lots of obstacles to a budget deal.

"Sticking points really have been the level of cuts needed in this $19 billion deficit problem, whether or not there’d be any new taxes, and what kind of reforms the governor would demand on pensions and tax reform and budget reform," Myers said.

The budget meeting happened in Santa Monica because the governor has been under the weather. Tomorrow, California sets a record for the longest state budget delay ever.

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