With the state budget now four weeks overdue, Senate Pro Tem Don Perata cancelled scheduled budget floor vote, saying negotiations were moving forward and a vote "would disrupt that progress."

According to the Sacramento Bee's Capitol Alert, Perata reiterated the Democrats' opposition to borrowing or other temporary solutions. "It's painful - but it's time to stop shunting our responsibility off to 'next year," Perata said.

Democrats have proposed raising more than $9 billion in taxes to help balance the state's budget, which has a $15.2 billion deficit. Republicans, however, have made clear that they will not support the Democratic proposal.

While Democrats control 25 of the 40 seats in the state Senate, a minimum of two Republican votes will be required to reach the two-thirds majority needed for passage of the budget. However, this assumes Perata has the full support of his caucus, which some Capitol Insiders question.

Not only is the budget battle focused on policy, there is a great deal of politics involved as well. Orange County Democratic Senator Lou Correa was one of a handful of moderate Democrats to sign a "no new tax" pledge during a 2006 highly publicized and contentious Senate race. Many believe Correa will withhold support of a budget that includes a tax increase. This means Perata would need more Republican votes to pass the budget.

Meanwhile, despite immense opposition from Democrats and labor groups, the Sacramento Bee is reporting that Gov. Arnold Schwarzenegger still plans to sign an executive order to reduce pay for about 200,000 state workers to the federal minimum wage and lay off 22,000 temporary workers and retired annuitants. The executive order, according to the Sacramento Bee, will save the state about "$1 billion per month starting with the August pay period."