The San Francisco Chronicle takes an optimistic approach saying despite political posturing, negotiations are still going on in private...

"...the governor also said that he still hopes to reach a consensus before Christmas on a budget bailout. He said he and the Democrats are moving toward an agreement on the $18 billion package of program cuts and tax and fee increases that the governor vowed to veto just last Thursday."

The Huffington Post screams the headline: "CALIFORNIA BROKE? State Could Run Out Of Money In Two Months, Says Official."

"California's chief financial officer warned Monday that the state would run out of money in about two months as hopes of a Christmas budget compromise melted into political finger-pointing by the end of the day."