Still no agreement on state budget

With Republicans on the sidelines, Gov. Arnold Schwarzenegger and Democratic leaders met Tuesday to fashion a midyear fix for California's swelling budget deficit.AP in the Daily News.

Senate President Pro Tem Darrell Steinberg told reporters the talks had been positive. Less than a week ago, Schwarzenegger had threatened to veto the Democratic budget plan that is the basis for the current discussions.

"We're all very committed to making an $18 billion dent into this problem before the end of the year," said Steinberg, D-Sacramento. "That's our obligation."