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Nation
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SACRAMENTO, Calif. — Against a backdrop of IOUs and expanding government furloughs, Gov. Arnold Schwarzenegger and legislative leaders expressed optimism Saturday that they were moving toward a compromise that could end California's fiscal calamity.
LANSING, Mich. — Long before California resorted to IOUs to pay state bills, and before New York's political insurrection made a mess of this year's budget planning, and even before the recession pushed dozens of other states into their worst fiscal distress in decades, lawmakers here were cutting.