Gov. Arnold Schwarzenegger's effort to retool the state's health care system ran aground Monday after some lawmakers raised concerns that it was too costly for the cash-strapped state.The $14.7 billion program, negotiated only weeks ago with Democratic leaders, failed to get out of a key...

Gov. Arnold Schwarzenegger is considering the early release of more than 20,000 low-risk prison inmates from the nation's largest prison system as a way to save money amid a worsening budget crisis, a newspaper reported Thursday.Only nonviolent offenders would be eligible, and prisoners considered for...

In its freshest set of troubles, the American Red Cross is cutting a third of the 3,000 jobs at its national headquarters in an overhaul intended to eliminate a $200 million deficit within two years.The charity's board of governors gave general approval to the cutbacks...

Arnold Schwarzenegger stormed into office during California's last budget crisis, promising to "end the crazy deficit spending" so the state would never go over the financial cliff again. But four years later, California is back in the same spot.The cooling economy has opened up a...

This article is about how the legislators will be willing to cut their spending to help California's budget crisis: Defines terms such as opportunity cost