With the fiscal health of the nation’s most populous state in serious decline, Gov. Arnold Schwarzenegger and California legislative leaders promised Oct. 8 that, despite their differences, they would find the billions of dollars need to avert drastic cuts in services, reports the New York Times. After meeting for a little over an hour, they emerged from Schwarzenegger’s office shoulder to shoulder but disclosing little of their discussions beyond vowing to continue meeting. "We want to make sure we are together as a team," Schwarzenegger said outside his office, standing with leaders with whom he engaged in a protracted battle over a budget that was adopted last month 85 days overdue and is already falling into imbalance. Aides to the leaders said it was important to quell any concern in financial markets that the political discord so common here would stymie efforts to pay back the short-term loans the state is poised to seek in order to right its finances. After confronting a credit freeze last week that deprived California of up to $7 billion in short-term borrowing needed to pay its day-to-day bills, Bill Lockyer, the state treasurer, said he would seek $4 billion in the market next week. Schwarzenegger had warned the Treasury Department that California might need an emergency loan to cover its expenses, but troublesome legal issues have emerged over such assistance, and the leaders emphasized to reporters the need to secure the borrowing. A glimmer of hope that the borrowing in the market would find success arrived Oct. 8 when Massachusetts, which like California has discussed a loan from the federal government, was able to sell $750 million worth of bonds to help pay its bills. The sale had been postponed twice in the past two weeks and was taken as a sign of thawing in the market. But the economic downturn continues to assault the finances of California, the world’s sixth-largest economy, and that of several other states…

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