Legislative leaders, Gov. Schwarzenegger set to discuss final details on California’s budget

Calif. lawmakers, Schwarzenegger to discuss budget

SACRAMENTO, Calif. — California officials are set for talks they hope will iron out the final details to closing the state’s $26.3 billion budget deficit.

Remaining pitfalls include how much money to borrow from local governments, whether to guarantee that schools will be repaid money they lose during poor economic times and how much money to save for future budget emergencies.

The top four legislative leaders are scheduled to meet with Gov. Arnold Schwarzenegger Sunday evening. Their staffs spent Saturday trying to work out legal language that could resolve the remaining issues.

Leaders say a budget vote could come this week.

The talks come as the state pays its bills with IOUs for the first time in nearly 20 years.