State Fiscal Year Ends, No Budget Deal
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For the third consecutive year, California will is starting a new fiscal year today without a state budget in place. A partisan impasse over spending and taxes has deadlocked Republican and Democratic lawmakers and no agreement appears to be in sight.
The state faces a record $38.2 billion shortfall and is operating for the first time completely on borrowed money. Without a new budget, the state is unable to make millions of dollars in on-time payments to schools, community colleges, courts, state suppliers and others.
