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White House monitoring California budget crisis

WASHINGTON
Wed Jul 1, 2009 12:46pm EDT

WASHINGTON (Reuters) - The White House on Wednesday stopped short of promising any new federal aid for California, after lawmakers there failed to meet an early morning deadline to agree on a balanced budget.

"We continue to watch the situation and we'll see as it develops," White House spokesman Robert Gibbs said, when asked what action the federal government could take to help California, which will have to begin issuing "IOU" notes to the state's venders and local agencies.

(Editing by Ross Colvin)


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