Arnold Schwarzenegger on Yahoo! News Photos

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Fri, 03 Jul 2009 19:07:51 GMT

(Reuters) - California Governor Arnold Schwarzenegger speaks during a news conference in San Francisco, California July 3, 2009. State officials have begun issuing billions of dollars in "IOUs" to avoid a cash crisis, after lawmakers failed to balance the budget by the start of the state's new fiscal year on Wednesday, leaving a $26.3 billion deficit. REUTERS/Robert Galbraith (UNITED STATES POLITICS BUSINESS)

California Governor Arnold Schwarzenegger speaks in front of ...

(Reuters) — Fri, 03 Jul 2009 19:04:19 GMT

(Reuters) - California Governor Arnold Schwarzenegger speaks in front of state citizens during a news conference in San Francisco, California July 3, 2009. State officials have begun issuing billions of dollars in "IOUs" to avoid a cash crisis, after lawmakers failed to balance the budget by the start of the state's new fiscal year on Wednesday, leaving a $26.3 billion deficit. REUTERS/Robert Galbraith (UNITED STATES POLITICS BUSINESS)

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Fri, 03 Jul 2009 19:00:48 GMT

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Fri, 03 Jul 2009 18:59:33 GMT

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Fri, 03 Jul 2009 18:58:19 GMT

(Reuters) - California Governor Arnold Schwarzenegger speaks during a news conference in San Francisco, California July 3, 2009. Top California lawmakers raised hope on Thursday that an elusive budget deal could be at hand, as officials began issuing billions of dollars in "IOUs" to avoid a cash crisis on the second day of a new fiscal year without an agreement to balance the state's books. California faces a financial stranglehold after lawmakers failed to balance the budget by the start of the state's new fiscal year on Wednesday, leaving a $26.3 billion deficit and prompting Schwarzenegger to declare a fiscal emergency. REUTERS/Robert Galbraith (UNITED STATES POLITICS BUSINESS)

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Fri, 03 Jul 2009 18:36:47 GMT

Registered warrants, or IOUs, are printed at the State Controller's ...

(Reuters) — Fri, 03 Jul 2009 00:13:20 GMT

(Reuters) - Registered warrants, or IOUs, are printed at the State Controller's office in Sacramento, California July 2, 2009. The Controller has printed over 50,000 IOUs, and those dated July 2, total over $53 million. Gov. Schwarzenegger has declared a fiscal emergency for the state, and called a special legislative session to address the budget's $24.3 billion deficit. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS)

Registered warrants, or IOUs, are printed at the State Controller's ...

(Reuters) — Fri, 03 Jul 2009 00:10:16 GMT

Computer Operator Louie Sanchez unloads registered warrants, ...

(Reuters) — Fri, 03 Jul 2009 00:10:12 GMT

(Reuters) - Computer Operator Louie Sanchez unloads registered warrants, or IOUs, from a printer at the State Controller's office in Sacramento, California July 2, 2009. The Controller has printed over 50,000 IOUs, and those dated July 2 total over $53 million. Gov. Schwarzenegger has declared a fiscal emergency for the state, and called a special legislative session to address the budget's $24.3 billion deficit. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS)

Computer operator Louie Sanchez places prepares blank checks ...

(AP) — Thu, 02 Jul 2009 23:48:06 GMT

(AP) - Computer operator Louie Sanchez places prepares blank checks to be print into registered warrants at the state Controller's office in Sacramento, Calif., Thursday, July 2, 2009. The inability of Gov. Arnold Schwarzenegger and state lawmakers to reach a compromise on a balanced budget, and a $26.3 billion budget deficit has forced Controller John Chiang to issue IOUs for the first time since 1992.(AP Photo/Rich Pedroncelli)

Computer operator Louie Sanchez removes some of the first of ...

(AP) — Thu, 02 Jul 2009 23:42:30 GMT

(AP) - Computer operator Louie Sanchez removes some of the first of an estimated 50,000 registered warrants printed at the state Controller's office in Sacramento, Calif., Thursday, July 2, 2009. The inability of Gov. Arnold Schwarzenegger and state lawmakers to reach a compromise on a balanced budget, and a $26.3 billion budget deficit has forced Controller John Chiang to issue IOUs for the first time since 1992.(AP Photo/Rich Pedroncelli)

Computer operations supervisor Shawn Taylor checks some of ...

(AP) — Thu, 02 Jul 2009 23:38:22 GMT

(AP) - Computer operations supervisor Shawn Taylor checks some of the first of an estimated 50,000 registered warrants printed at the state Controller's office in Sacramento, Calif., Thursday, July 2, 2009. The inability of Gov. Arnold Schwarzenegger and state lawmakers to reach a compromise on a balanced budget, and a $26.3 billion budget deficit has forced Controller John Chiang to issue IOUs for the first time since 1992.(AP Photo/Rich Pedroncelli)

Dorothy Cottrill, of the state Controller's office, inspects ...

(AP) — Thu, 02 Jul 2009 23:20:04 GMT

(AP) - Dorothy Cottrill, of the state Controller's office, inspects some of the first of an estimated 50,000 registered warrants to issued, in Sacramento, Calif., Thursday, July 2, 2009. The inability of Gov. Arnold Schwarzenegger and state lawmakers to reach a compromise on a balanced budget, and a $26.3 billion budget deficit has forced Controller John Chiang to issue IOUs for the first time since 1992.(AP Photo/Rich Pedroncelli)

California Gov. Arnold Schwarzenegger speaks about the state ...

(AP) — Thu, 02 Jul 2009 18:53:20 GMT

(AP) - California Gov. Arnold Schwarzenegger speaks about the state budget crisis Thursday, July 2, 2009, during a news conference in downtown Los Angeles. (AP Photo/Nick Ut)

Two unemployed men who live on the street in Los Angeles, seen ...

(AFP/File) — Thu, 02 Jul 2009 02:09:00 GMT

(AFP/File) - Two unemployed men who live on the street in Los Angeles, seen on June 19. California Governor Arnold Schwarzenegger formally declared a fiscal emergency in the largest US state and called state legislators back into a special session to close a budget deficit expected to reach 24 billion dollars over the next two years.(AFP/File/Mark Ralston)

California governor Arnold Schwarzenegger formally declared ...

(AFP/Getty Images/File) — Thu, 02 Jul 2009 02:09:00 GMT

(AFP/Getty Images/File) - California governor Arnold Schwarzenegger formally declared a fiscal emergency in the largest US state and called state legislators back into a special session to close a budget deficit expected to reach 24 billion dollars over the next two years.(AFP/Getty Images/File/Justin Sullivan)

People look out over San Francisco Bay at Angel Island from ...

(Reuters) — Wed, 01 Jul 2009 23:44:47 GMT

(Reuters) - People look out over San Francisco Bay at Angel Island from Sausalito, California July 1, 2009. Angel Island is one of California's state parks that faces closure unless a solution is found to the state's budget impasse. Gov. Arnold Schwarzenegger on Wednesday declared a fiscal emergency to force lawmakers into a special session to tackle a state budget gap that has widened to $26.3 billion from $24.3 billion after they failed to close it on Tuesday. REUTERS/Robert Galbraith (UNITED STATES POLITICS TRAVEL)

A view of Angel Island in San Francisco Bay from Sausalito, ...

(Reuters) — Wed, 01 Jul 2009 23:36:27 GMT

(Reuters) - A view of Angel Island in San Francisco Bay from Sausalito, California July 1, 2009. Angel Island is one of California's state parks that faces closure unless a solution is found to the state's budget impasse. Gov. Arnold Schwarzenegger on Wednesday declared a fiscal emergency to force lawmakers into a special session to tackle a state budget gap that has widened to $26.3 billion from $24.3 billion after they failed to close it on Tuesday. REUTERS/Robert Galbraith (UNITED STATES POLITICS)

Citing the Legislatures failure to pass a budget plan, Gov. ...

(AP) — Wed, 01 Jul 2009 21:03:28 GMT

(AP) - Citing the Legislatures failure to pass a budget plan, Gov. Arnold Schwarzenegger announces that he is declaring a fiscal emergency to address California's deficit during a Capitol news conference in Sacramento, Calif., Wednesday, July 1, 2009. Lawmakers will have 45 days to send him a plan to balance the state's budget which ended the fiscal year with a $24.3 billion deficit.(AP Photo/Rich Pedroncelli)

Citing the Legislatures failure to pass a budget plan, Gov. ...

(AP) — Wed, 01 Jul 2009 21:03:23 GMT

Gov. Arnold Schwarzenegger waves to tourists as he walks to ...

(AP) — Wed, 01 Jul 2009 21:01:17 GMT

(AP) - Gov. Arnold Schwarzenegger waves to tourists as he walks to a news conference with his Chief Of Staff, Susan Kennedy, and Finance Director Mike Genest, right, at the Capitol in Sacramento, Calif., Wednesday, July 1, 209. Schwarzenegger announced that he was declaring a fiscal emergency to address California's budget deficit, giving the Legislature 45 days to send him a plan to balance the state's budget which ended the fiscal year with a $24.3 billion deficit.(AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger gestures as he discusses his declaration ...

(AP) — Wed, 01 Jul 2009 20:59:59 GMT

(AP) - Gov. Arnold Schwarzenegger gestures as he discusses his declaration of a fiscal emergency to address California's deficit during a Capitol news conference in Sacramento, Calif., Wednesday, July 1, 2009. Lawmakers will have 45 days to send him a plan to balance the state's budget which ended the fiscal year with a $24.3 billion deficit.(AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger listens to a reporters question after ...

(AP) — Wed, 01 Jul 2009 20:59:33 GMT

(AP) - Gov. Arnold Schwarzenegger listens to a reporters question after announcing that he was declaring a fiscal emergency to address California's deficit during a Capitol news conference in Sacramento, Calif., Wednesday, July 1, 2009. Lawmakers will have 45 days to send him a plan to balance the state's budget which ended the fiscal year with a $24.3 billion deficit.(AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger listens to a question concerning ...

(AP) — Wed, 01 Jul 2009 20:55:41 GMT

(AP) - Gov. Arnold Schwarzenegger listens to a question concerning his declaration of a fiscal emergency to address California's deficit at a Capitol news conference in Sacramento, Calif., Wednesday, July 1, 2009. Lawmakers will have 45 days to send him a plan to balance the state's budget which ended the fiscal year with a $24.3 billion deficit.(AP Photo/Rich Pedroncelli)

SEIU union member and state fund employee Noreen Nelson (R) ...

(Reuters) — Wed, 01 Jul 2009 20:55:38 GMT

(Reuters) - SEIU union member and state fund employee Noreen Nelson (R) and other state workers protest outside the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS CONFLICT BUSINESS)

California Governor Arnold Schwarzenegger leaves a news conference ...

(Reuters) — Wed, 01 Jul 2009 20:54:22 GMT

(Reuters) - California Governor Arnold Schwarzenegger leaves a news conference at the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS)

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Wed, 01 Jul 2009 20:53:18 GMT

(Reuters) - California Governor Arnold Schwarzenegger speaks during a news conference at the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS)

SEIU union members and state workers protest outside the State ...

(Reuters) — Wed, 01 Jul 2009 20:53:16 GMT

(Reuters) - SEIU union members and state workers protest outside the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS CONFLICT BUSINESS)

California Governor Arnold Schwarzenegger speaks during a news ...

(Reuters) — Wed, 01 Jul 2009 20:49:38 GMT

SEIU union member and state corrections employee Mary McNutt ...

(Reuters) — Wed, 01 Jul 2009 20:49:34 GMT

(Reuters) - SEIU union member and state corrections employee Mary McNutt (C) and other state workers protest outside the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS CONFLICT)

Citing the Legislatures failure to pass a budget plan, Gov. ...

(AP) — Wed, 01 Jul 2009 20:49:31 GMT

(AP) - Citing the Legislatures failure to pass a budget plan, Gov. Arnold Schwarzenegger announced that he was declaring a fiscal emergency to address California's deficit during a Capitol news conference in Sacramento, Calif., Wednesday, July 1, 2009. Lawmakers will have 45 days to send him a plan to balance the state's budget which ended the fiscal year with a $24.3 billion deficit.(AP Photo/Rich Pedroncelli)

California Governor Arnold Schwarzenegger walks to a news conference ...

(Reuters) — Wed, 01 Jul 2009 20:47:27 GMT

(Reuters) - California Governor Arnold Schwarzenegger walks to a news conference at the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS)

California Governor Arnold Schwarzenegger (L) walks to a news ...

(Reuters) — Wed, 01 Jul 2009 20:45:16 GMT

(Reuters) - California Governor Arnold Schwarzenegger (L) walks to a news conference with his Chief of Staff Susan Kennedy (R) at the State Capitol in Sacramento, California July 1, 2009. Schwarzenegger on Wednesday declared a fiscal emergency for the government of the most populous U.S. state to force lawmakers into a special session to tackle a $24.3 billion state budget gap. REUTERS/Max Whittaker (UNITED STATES POLITICS BUSINESS)

California Governor Arnold Schwarzenegger speaks to the media ...

(Reuters) — Wed, 01 Jul 2009 14:24:39 GMT

(Reuters) - California Governor Arnold Schwarzenegger speaks to the media after meeting with U.S. Health and Human Services Secretary Kathleen Sebelius in Washington D.C. May 20, 2009 in this photo released by the Office of the Governor. REUTERS/Peter Grigsby/Office of the Governor/Handout

California Governor Arnold Schwarzenegger walks to a press conference ...

(Reuters) — Wed, 01 Jul 2009 03:40:01 GMT

(Reuters) - California Governor Arnold Schwarzenegger walks to a press conference on the state budget at the State Capitol in Sacramento, February 19, 2009. REUTERS/Max Whittaker

An unidentified woman joins state employees and members of the ...

(AP) — Wed, 01 Jul 2009 03:02:25 GMT

(AP) - An unidentified woman joins state employees and members of the Service Employees International Union protesting against Gov. Arnold Schwarzenegger's furloughs and state employee pay cuts in his proposed budget revise plan during a demonstration at the Capitol in Sacramento, Calif., Tuesday, June 30, 2009. Schwarzenegger and state lawmakers have until midnight Tuesday to reach a a compromise on a state budget revision or California will have to issue IOUs to venders. (AP Photo/Rich Pedroncelli)

State employee Barbara Alves joins other state employees and ...

(AP) — Wed, 01 Jul 2009 02:53:01 GMT

(AP) - State employee Barbara Alves joins other state employees and members of the Service Employees International Union protesting against Gov. Arnold Schwarzenegger's furloughs and pay cuts to state employees during a demonstration at the Capitol in Sacramento, Calif., Tuesday, June 30, 2009. Schwarzenegger and state lawmakers have until midnight Tuesday to reach a a compromise on a state budget revision or California will have to issue IOUs to venders. (AP Photo/Rich Pedroncelli)

State Sen. President Pro Tem Darrell Steinberg, D-Sacramento, ...

(AP) — Wed, 01 Jul 2009 02:49:31 GMT

(AP) - State Sen. President Pro Tem Darrell Steinberg, D-Sacramento, left, and Senate Minority Leader Dennis Hollingsworth, R-Temecula, leave the Senate floor together for a brief meeting to discuss the state's pending cash crisis at the Capitol in Sacramento, Calif., Tuesday, June 30, 2009. Lawmakers and Gov. Arnold Schwarzenegger have until midnight Tuesday to reach a compromise on a revised budget plan or the state will be forced to issue IOUs for the first time in two decades.(AP Photo/Rich Pedroncelli)

State employee Carlene DeMarco joins other state employees and ...

(AP) — Wed, 01 Jul 2009 02:49:17 GMT

(AP) - State employee Carlene DeMarco joins other state employees and members of the Service Employees International Union protesting against Gov. Arnold Schwarzenegger's furloughs and state employee pay cuts during a demonstration at the Capitol in Sacramento, Calif., Tuesday, June 30, 2009. Schwarzenegger and state lawmakers have until midnight Tuesday to reach a a compromise on a state budget revision or California will have to issue IOUs to venders. (AP Photo/Rich Pedroncelli)

Assembly Speaker Karen Bass, D-Los Angeles, responds to a reporters ...

(AP) — Wed, 01 Jul 2009 00:36:27 GMT

(AP) - Assembly Speaker Karen Bass, D-Los Angeles, responds to a reporters question concerning the state's pending cash crisis during a news conference with State Sen. President Pro Tem Darrell Steinberg, D-Sacramento, left, at the Capitol in Sacramento, Calif., Tuesday, June 30, 2009. Lawmakers are at odds with Gov. Arnold Schwarzenegger on how to close a $24.3 billion budget deficit.(AP Photo/Rich Pedroncelli)

State Sen. President Pro Tem Darrell Steinberg, D-Sacramento, ...

(AP) — Wed, 01 Jul 2009 00:35:46 GMT

(AP) - State Sen. President Pro Tem Darrell Steinberg, D-Sacramento, left, responds to a reporters question concerning the state's pending cash crisis during a news conference with Assembly Speaker Karen Bass, D-Los Angeles, at the Capitol in Sacramento, Calif., Tuesday, June 30, 2009. Lawmakers are at odds with Gov. Arnold Schwarzenegger on how to close a $24.3 billion budget deficit.(AP Photo/Rich Pedroncelli)

Facing a midnight deadline to avoid California from having to ...

(AP) — Tue, 30 Jun 2009 22:44:51 GMT

(AP) - Facing a midnight deadline to avoid California from having to issue IOUs, Gov. Arnold Schwarzenegger called on lawmakers to reach a solution to resolve the state's $24.3 billion budget deficit during a news conference outside his Capitol office in Sacramento, Calif., Tuesday, June 30, 2009.(AP Photo/Rich Pedroncelli)

Facing a midnight deadline to avoid California from having to ...

(AP) — Tue, 30 Jun 2009 22:44:38 GMT

Protesters rally outside of State of California building to ...

(AP) — Tue, 30 Jun 2009 20:45:42 GMT

(AP) - Protesters rally outside of State of California building to protest Gov. Arnold Schwarzenegger's proposed budget in San Francisco, Tuesday, June 30, 2009. (AP Photo/Jeff Chiu)

The Save Our State Parks Campaign holds a demonstration outside ...

(AP) — Mon, 29 Jun 2009 22:51:38 GMT

(AP) - The Save Our State Parks Campaign holds a demonstration outside the California State Capitol on Monday, June 29, 2009, to protest the proposed closure of as many as 220 state parks because of the state's $24.3 billion budget shortfall. Thousands of tourists from around the country flock to the state each year to visit its beaches, campgrounds and iconic sites. Visitors to the Golden State could lose that opportunity if lawmakers and Gov. Arnold Schwarzenegger do not quickly find a compromise on the state budget.(AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger responds to a reporters question ...

(AP) — Mon, 29 Jun 2009 19:53:20 GMT

(AP) - Gov. Arnold Schwarzenegger responds to a reporters question concerning the state's pending cash crisis, following a his meeting with the Governor's Blue Ribbon Fire Commission, at the Capitol in Sacramento, Calif., Monday, June 29, 2009. Schwarzenegger said he would veto any budget plan that includes tax increases and urged lawmakers to reach a solution to the states $24.3 billion state budget plan deficit. (AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger listens to a reporter's question ...

(AP) — Mon, 29 Jun 2009 19:50:16 GMT

(AP) - Gov. Arnold Schwarzenegger listens to a reporter's question concerning the state's pending cash crisis, following a meeting with the Governor's Blue Ribbon Fire Commission, at the Capitol in Sacramento, Calif., Monday, June 29, 2009. Schwarzenegger said he would veto any budget plan that includes tax increases and urged lawmakers to reach a solution to the states $24.3 billion state budget plan deficit. (AP Photo/Rich Pedroncelli)

Gov. Arnold Schwarzenegger, surrounded by members of the Blue ...

(AP) — Mon, 29 Jun 2009 19:49:55 GMT

(AP) - Gov. Arnold Schwarzenegger, surrounded by members of the Blue Ribbon Fire Commission, discusses the state's pending cash crisis at thE Capitol in Sacramento, Calif., Monday, June 29, 2009. Schwarzenegger said he would veto any budget plan that includes tax increases and urged lawmakers to reach a solution to the states $24.3 billion state budget plan deficit. (AP Photo/Rich Pedroncelli)

State Senate President Darrell Steinberg, D-Sacramento, urges ...

(AP) — Sat, 27 Jun 2009 00:49:02 GMT

(AP) - State Senate President Darrell Steinberg, D-Sacramento, urges Republicans to vote on a Democratic plan to cut and delay billions in spending to prevent the state for having to issue IOU's next week, held at the Capitol in Sacramento, Calif., Friday, June 26, 2009. State Controller John Chiang has warned that California will be forced to issue IOU's instead of payments next week unless Schwarzenegger and state lawmakers can come up with a solution to the state's $24.3 billion deficit. Despite Steinberg's appeal, the Democrat's plan which fell short of the two-thirds votes needed for passage, with no Republicans voting for the measures. (AP Photo/Rich Pedroncelli)

State Senate Minority Leader Dennis Hollingsworth, R-Temecula, ...

(AP) — Sat, 27 Jun 2009 00:48:54 GMT

(AP) - State Senate Minority Leader Dennis Hollingsworth, R-Temecula, center, talks with Sen. Dave Cox, R-Fair Oaks, right, during the debate over a Democratic plan to cut and delay billions in spending to prevent the state for having to issue IOU's next week, held at the Capitol in Sacramento, Calif., Friday, June 26, 2009. State Controller John Chiang has warned that California will be forced to issue IOU's instead of payments next week unless Schwarzenegger and state lawmakers can come up with a solution to the state's $24.3 billion deficit. The Democrat's plan received no votes from Republicans and fell short of the two-thirds votes needed for passage. (AP Photo/Rich Pedroncelli)