California IOUs Will Pay 3.75%, State Panel Decides (Update3)
California will pay an interest rate of 3.75 percent on IOUs it will begin using today to pay its bills, a panel decided, as Governor Arnold Schwarzenegger and lawmakers remain deadlocked over how to close a $26 billion budget deficit.

United Passenger Lines Move Again After O’Hare Delays (Update1)
United Airlines said flight schedules returned to normal at Chicago’s O’Hare Airport after a computer outage disrupted passenger check-ins, forcing delays and 100 cancellations.

Schwarzenegger Orders Furloughs as Budget Gap Grows (Update3)
California Governor Arnold Schwarzenegger said he will shut down government offices the first three Fridays of every month and declared a fiscal emergency forcing lawmakers into a special session to tackle the state’s growing deficit.

Schwarzenegger Orders More Unpaid Leave as Budget Deficit Grows
California Governor Arnold Schwarzenegger said he will force state workers to take a third unpaid day off every month and order lawmakers into an emergency session to tackle the growing budget deficit.

California Misses Deadline to Avoid Issuing Need IOUs (Update2)
California is poised to issue more than $3 billion in IOUs to pay some bills after lawmakers failed to reach an agreement to close a $24 billion budget deficit facing the most-populous U.S. state.

Alabama’s Jefferson County Cuts Jobs to Stay Solvent (Update1)
Alabama’s most populous county will cut as many as 200 employees, amounting to almost 7 percent of the workforce, after the state Supreme Court rejected its bid to spend occupational taxes while it appeals a lower-court ruling striking down the levy.

California Lawmakers Confront Deadline to Solve Budget Deficit
California is poised to begin its new fiscal year tomorrow without a plan in place to close a $24 billion deficit as the state prepares to conserve cash by issuing IOUs to vendors who are owed money.

California Impasse Continues as Democrats Try End Run (Update2)
California lawmakers remained deadlocked over how fix a $24 billion deficit that threatens to leave the state broke in July, after Democrats sought an end-run around a rule requiring a supermajority vote to raise taxes.

Alec Baldwin Helps Girl Sue Parents in Cancer Tale: Rick Warner
Making a movie about a dying cancer patient is a delicate affair: The line between moving and maudlin is a thin one that can be easily crossed. “Terms of Endearment” and “Ikiru” get it right. Most don’t.

California’s Budget Impasse Intensifies as Cash Crisis Looms
California lawmakers moved further apart on how to keep the state from running out of money after Governor Arnold Schwarzenegger prodded Republicans to block a stopgap cash-saving measure.