State budget update, sort of

Negotiations over closing California's $26.3 billion budget deficit appeared stuck Friday, as government offices closed for the second time this month and a health program for low-income children stopped accepting new applicants.

Gov. Arnold Schwarzenegger and the Legislature's four top lawmakers scheduled a meeting Friday afternoon to work out a disagreement over repaying billions of dollars to schools halted talks earlier in the week.

With little apparent action in the Capitol, the effects of California's fiscal crisis were being felt throughout the state.