One vote shy of a budget deal, California Gov. Arnold Schwarzenegger on Sunday pressured reluctant Republicans in the state Legislature to pass a complex plan to close the state's $42 billion deficit.
The head of the state Assembly locked the chamber down, forcing members to remain as the measure stalled in the Senate.
Many California Republicans are unwilling to raise taxes to deal with the state's historic deficit, but at least three GOP voters were needed in each house for the two-thirds majority required to pass the budget.
"My guess is everybody's arm is getting twisted," said Sen. Dave Cox, a Republican who had been the among Democrats' best hopes for a deal. "My answer is no, and I'm not looking for additional information. I've made my decision."
Cox said he received a call from Schwarzenegger, who remained in the Capitol trying to secure the necessary votes.
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California's deficit has exploded in the face of a worsening recession that has seen the state's unemployment rate rise to 9.3 percent, a 15-year high. Meanwhile, California's credit rating has tanked, making it nearly impossible for the state to borrow money to pay its day-to-day bills.
Schwarzenegger has said the state faces "financial Armageddon" and warned that he would start the process of laying off 10,000 state employees if a budget deal was not reached by Friday. He backed off that threat because it appeared the Legislature was on the verge of passing the budget.
The lack of GOP votes in the Senate pushed the session into the early morning hours of Sunday.
Assembly Speaker Karen Bass, a Democrat, locked down her chamber about 3:30 a.m., forcing lawmakers to remain.
"We're short a Republican vote over there (in the Senate)," Bass said. "Somebody that committed backed away. That means we're not going anywhere. Sorry guys."
Assemblyman Tom Ammiano, also a Democrat, said the Senate deadlock was causing some in the Assembly to have second thoughts about the unpopular plan.
Republican Assemblyman Chuck DeVore said the package didn't "go far enough to reform government, to reduce redundant agencies and reduce waste, fraud and abuse. We are asking the taxpayers of California for too much of their hard-earned money in an attempt to cover over a problem of our own making," he said.
Democrats have decried the $15.1 billion in cuts in the budget-balancing package, more than half of which would come from education, while Republicans are unhappy about $14.4 billion in temporary tax increases.
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The plan also relies on $11.4 billion in borrowing.
The budget package is designed to fill California's budget gap through June 2010 if voters also approve a number of related measures at the ballot. Those include a state spending cap, a plan to sell bonds based on future lottery proceeds and approval to shift money from accounts for mental health and child-development programs.
