Capitol Notes from KQED summarizes the most recent steps:
BUDGET DAY PLUS 44 -- It now looks as though the Assembly will convene on Sunday to consider a budget proposal, in what would be the first actual floor vote on a new spending plan this year.
But it's not necessarily a deal. In fact, as of now, it's not a deal at all.
Assembly Democrats have scheduled a floor vote for 3 p.m. on Sunday, and believe that the budget to be debated represents a fair balance between their position and that of Governor Schwarzenegger. One would assume that this means some blend of taxes and spending limitations... even budget reform. But there's no confirmation of exactly what will, or won't, be in this budget bill.
As such, it's not surprising that there's no word of official support from the governor. And Assembly Republicans are quick to point out that they're not on board with what they've heard so far... which means the bill will almost undoubtedly fail to garner the necessary 54 votes for passage.
In years past, such floor actions have been derided as a political "drill," because the outcome was never in doubt. But this year, it seems everyone is finally ready to have that public debate. And perhaps some venting on both sides... assuming no deal is struck in the next three days... is the only way the budget impasse can be resolved.