Calif. Senate fails to break budget deadlock

The California Senate shut down at midnight Tuesday after failing to approve a stopgap plan to stave off the need for IOUs and ease the state's $24.3 billion budget deficit. State Controller John Chiang has said he will have to issue about $3 billion worth of IOUs this month to state contractors, college students and taxpayers owed refunds unless there is a budget-balancing agreement. Counties will not get paid for social programs they administer.