The story

California's state legislature voted Friday to slash state programs and shuffle around funds to close a $25 billion budget gap that has left the most populous U.S. state issuing IOUs.

The state Senate approved the measures early Friday, while the Assembly followed suit Friday afternoon after what one lawmaker called "a horrible mental roller coaster."

California Gov. Arnold Schwarzenegger called it "a tough budget, but it's a necessary budget." Read full article »

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