Despite negotiating until 10 p.m. last night, the negotiators were unable to reach a deal. While media reports suggest the breakdown is over education funding, there are other unresolved issues including an unbridged $400 million gap between the Governor and Democratic leaders.

But many other issues appear to still be fluid, including CalWORKs, where there is still no agreement. It is clear from yesterday that behind the scenes there is a furious battle to protect and preserve CalWORKs by key Democratic members and staff. Pro Tem Darrell Steinberg is quoted in today's Sacramento Bee saying that the state can't just look at numbers but it has to look at who that person is that is being affected. Other issues that appear to still be unresolved include fraud measures for IHSS, fingerimaging, MediCal managed care, redevelopment and privatization.

Advocates and counties appear to be making some progress in stalling the Governor's privatization proposal. One Administration official told a county advocate that the proposal was being revised and that the provisions exempting the Governor from state contracting law were being removed. But the Administration is still trying to win fast track authority that would leave the Legislature with little future control other than funding the effort. Advocates want the Legislature to reserve final approval until the Administration provides more specifics on what is being proposed.

A deal could come at anytime but it now appears that it will be early next week before any vote could be held. While we wait for resolution check out this piece from ABC News Bay Area on how the Governor's CalWORKs proposals impact real families.

http://abclocal.go.com/kgo/video?id=6917594