Day 15: Fiscal Year 2009-2010

GLENBROOK, NEVADA, LAKE TAHOE

5:45 PM, Pacific Standard Time 

No deal struck between the governor and the Legislature on closing an estimated $26 billion hole in the budget for the fiscal year that began July 1.

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Various media reports say, generally:

 1) The governor and the Legislature are $400 million apart on closing the gap.

2) Methods of guaranteeing repayment to schools some $11 billion they have been shorted over the past two budget years sharply divides negotiators. And

3) Close to 20 percent of the hole — $5 billion or so — will be filled by diverting funds from cities, counties and redevelopment agencies for state use. Expect lawsuits to be filed.

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IOUs continue to be issued by the state Controller to cover more than 25 percent of the state’s July bills. Bank of America and Wells Fargo, among other banks, stopped accepting the warrants July 10. 

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The governor did not meet with legislative leaders to discuss the budget. 

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