Wondering when California's budget is going to get fixed

One great thing about California is they’re not allowed to go into debt, like the federal government. They must always balance their budget. And yet the California legislature has failed to address this problem and has let deadline after deadline slip by, in seeming mockery, in spite of Gov. Schwarzenegger’s continued pleas and coaxing. When in the world will they get their act together?

Gov. Schwarzenegger’s weekly address, 7/3/09

Governor discusses state budget in weekly address

Anyone from California care to clue me in? Seems to me the legislature’s stalling because they have their own agenda and want to spite Schwarzenegger. What he’s saying makes sense to me. Is there another side to this story that I don’t know about?