SACRAMENTO, Calif. -- Lawmakers have begun a sharp debate about a Democratic plan to close California's projected $24 billion deficit but a quick resolution seems unlikely.
The plan being debated Wednesday in the Assembly and Senate appears to have insufficient support from Republicans. Gov. Arnold Schwarzenegger has criticized the plan's higher taxes on oil drilling, tobacco products and vehicle licensing.
State Controller John Chiang said he would begin issuing IOUs to thousands of state contractors as soon as next week. He said that without a balanced budget, the state would be $2.8 billion in the red at the end of July, the first month of its new fiscal year.
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