Financial Times FT.com

California governor under fire on budget

By Lionel Barber and Matthew Garrahan in Sacramento

Published: July 10 2009 22:37 | Last updated: July 10 2009 22:37

It was hotter than usual in Sacramento this week but the rising temperature had nothing to do with the balmy California summer.

The state is grappling with its worst fiscal crisis and Arnold Schwarzenegger, its governor, is taking heat from political opponents over his refusal to strike a budget deal that addresses a $26bn (€19bn, £16bn) deficit.

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