The state's new fiscal calendar started Tuesday, but there's still no agreement on how to close a massive budget deficit. Meanwhile, Governor Schwarzenegger has declared a financial emergency and the state is now issuing IOUs instead of making payments. Helping to make sense of it all is the California Report's Sacramento Bureau Chief, John Myers.
Music Bridge 1: "Rock 'n' Roll Polar Bear" by Colourmusic from the CD "F, Monday, Orange, February, Venus, Lunatic, 1 Or 13" (Great Society)
Last month, President Obama signed into law a billion dollar program to encourage car owners to trade in their old clunkers for a new, more fuel efficient models. Getting gas guzzlers off America's highways seems like it would be good for the environment, but will it mostly help automakers sell new cars? One clue can be found here in California, where we've had a similar program for a decade.
Reporter: Amy Standen
At many California high schools, the student body is a rich ethnic mix. But at some campuses, racial tensions shatter that mosaic. It was like that at one Los Angeles area school, until a high school senior helped put the pieces back together again.
Reporter: Adolfo Guzman-Lopez
Music Bridge 2: "Bone Again With Bonerama" by Roswell Rudd from the CD "Trombone Tribe" (Sunny Side)
The fourth of July is normally a busy travel weekend, but the economy is keeping many folks close to home. We talk to Liz Scott, author of "Moon's California" guidebook about some of the offbeat places Californians are discovering in their own backyards.
Music Bridge 3: "Dixie Lee" by Donald Byrd from the CD "Blue 'N' Groovy Volume 2: Mostly Modal" (Blue Note)
If you're itching to explore some local history, we've got a recommendation: a Sacramento restaurant just blocks from the Capitol. At the Pancake Circus, you'll find politicians lunching and people nursing hangovers on weekends. The restaurant opened nearly 40 years ago and not much has changed, including the clown decorations, which may or may not be political commentary. But there's more under the big top besides pancakes.Reporter: Elaine Corn
End Music: "Duke's In Bed" by Johnny Hodges from the CD "Verve Jazz Masters 35: Johnny Hodges" (Verve)
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