[Harris:] So after an all-night session that came down to a single vote who is this guy? Oh, I know his name. Where's his name? I have it somewhere. The state senate that's George Runner. State Senator George Runner who was speaking there. The state senate passed a budget deal in cash-strapped California. The state assembly
[Evan Halper, Sacramento Bureau Chief, "los Angeles Times":] Well, it's always difficult to pass a budget with a deficit this big in California. And the reason particularly is because there is a two- thirds vote requirement, where one of just three states has that. And it basically gives the minority Republicans who don't have a lot of clout in Sacramento power to leverage it for all of the things they want. And so at any time there's, you know, a deficit to bridge, this kind of situation happens here.
[Harris:] Yes. And Ted, did Dems and Republicans agree on the extent of the crisis? I mean, we're talking about a projected deficit of $42 billion by the middle of next year. Or did they just differ on how to close it?
[Rowlands:] No, they agreed...
[Harris:] Yes. Let me send that to Ted for a second.
[Rowlands:] ... on the problem, that it was significant, but they just did not agree in terms of how to solve the problem, and that Republicans just said, no, we're not raising taxes. And they put their they settled in and said, we're not going to agree to this. But the pathetic reality in this state is that these lawmakers are beholden to their parties, not the voters. If you break ranks in this state and this is on both sides you will feel it. They will run a campaign against you the next primary. So lawmakers are petrified. So when the state really needs these people to rally and get something done like they did this year, because we go through this every year, they can't. They're petrified, because they're going to lose their seat. Luckily, the stakes were so high here today, they pulled the all-nighter and got it done.
[Harris:] Evan, weigh in on that. Did everyone agree on the size of the problem that needed to be tackled here?
[Halper:] Yes, absolutely. Everyone agreed the deficit is roughly $42 billion over the next 17 months or so. And he's absolutely right. I mean, every Republican in the legislature had signed a pledge that they would never raise taxes, every Republican but one. You needed six Republican votes to pass the budget. And because we have these term limits in California, you know, folks aren't around that long, and they're reluctant to go out on a limb and, you know, cross their parties.
[Harris:] Ted, did Republicans offer any alternatives? I understand not being in favor of tax increases, but I'm wondering, were there any alternatives offered?
[Rowlands:] Early on, yes, there were. But this is such a huge problem. The governor has said, if you think we can do this without any sort of tax increase, you've got a real issue with your math. This is a new definition of the new math, basically. And so they were but they were also involved in the negotiations leading up to this bill, this budget. So, they did have some involvement. It was just that because of this no-tax pledge that a lot of them had signed, they couldn't vote for it, because they were fearing political backlash.
[Harris:] And Evan, how much of a test was this for the governor, a political test, or otherwise, for Governor Schwarzenegger?
[Halper:] Well, it was quite a test, and, you know, he's had problems with the Republican Party here in California. I mean, he's popular nationwide, but any time he needs to get anything done in the legislature that requires bringing the Republicans over, you know, the Democrats say, look, you're a big Republican governor, you know, got swept into office as an anti tax crusader, these are your people, why can't you bring them along. And he never seems to be able to muster up any votes from them, because they feel he's, you know, he's left he's parted ways with them.
[Harris:] So, Ted, how diminished is the governor? Opinion polls, where do they stand for the governor right now?
[Rowlands:] He's dropped, but he's nowhere near as low as state lawmakers. And as Evan will tell you, this isn't just Governor Schwarzenegger, it's every governor in California, has the same problem, getting people to come together. It's just a locked up, ungovernorable state.
[Harris:] Locked up, ungovernorable. Evan, I found this little nugget in your reporting. So, the budget now, clearly, has passed, and the governor will sign it. Even if the deal makes it through the legislature and Schwarzenegger signs it, it will unravel if voters do not approve several provisions that would be on the ballot this spring. Evan, explain this.
[Halper:] Yes, this is the kind of thing that happens every budget. They pass a plan, and it falls out of balance right away. This one all hinges on a whole bunch of ballot initiatives. Voters have to agree to take money away from mental-health programs and early-childhood education programs. They have to agree to borrow $500 billion against future lottery profits, which is confusing, and they may think is taking money away from education and not do. And if they don't approve those things, suddenly we're billions in the hole again.
[Harris:] Oh, my goodness. All right. Let's leave it there, Evan Halper of the "Los Angeles Times" and CNN's Ted Rowlands. Ted, good to see you. Guys, thank you. We appreciate it.
[Halper:] Thank you.
[Harris:] I believe do we have the motorcade shots of the president? All right. Let's take a look. The president leaving the Ottawa International Airport, now on his way to Parliament Hill, where the president, President Obama, will meet with the prime minister, Prime Minister Stephen Harper, and parliament officials. The presidential motorcade. As you know, the president is in Ottawa, Canada right now for meetings with the prime minister, Stephen Harper. And at the top of the agenda, obviously, economic issues, energy, climate. The president taking along Lawrence Summers, his top White House economic adviser, energy and climate coordinator Carol Browner, all for this meeting with the prime minister. Clearly, topping the agenda will be trade. Discussions on NAFTA, the North American Free Trade Agreement, and World Trade Organization rules will be discussed. Canada, as you know, was among a number of countries voicing concerns about "buy American" requirements in the $787 billion economic stimulus package just passed by Congress last week. The provision was modified in the final legislation to bar requirements that they violate trade agreements. Canada is why is this of concern to Canada? Canada is the biggest market for U.S. exports. So, the presidential motorcade now on its way to Parliament Hill, and we will follow these pictures as we get them here in the CNN NEWSROOM. So, just how much money is our nation spending? It seems like every day we're hearing about another bunch of bailout billions. Josh Levs is here to talk us through how much all of this is adding up to. Josh, help us through this.
[Josh Levs, Cnn Correspondent:] Tony, you ready for this?
[Harris:] Yes.
[Levs:] Are you?
[Harris:] No.
[Levs:] When you look at it all on one list, which I've actually done for the first time today, it's a little scary.
[Harris:] All right.
[Levs:] Check this out. The fine folks at CNN Money put this together.
[Harris:] Share the pain with us.
[Levs:] All right. Now, let's keep in mind as we see this, the government says that the recession goes back to December 2007. And we've been doing things for more than a year, right? People got stimulus checks last year. I'm just going to scroll way down so all these various plans. Check out the totals here. Tony, of all these plans that we've been hearing about, $10.8 trillion combined inside these plans. And this keeps going up. Don't be surprised if later today this jumps over $11 trillion because there's some
[Harris:] So, we're talking about actual spending in that big figure you showed us. Actual spending...
[Levs:] $2.1 trillion.
[Harris:] ... that's promised. And also, commitments of dollars, if they're needed.
[Levs:] Exactly.
[Harris:] If they're needed.
[Levs:] Well, if they're needed, but I mean, these are all things that the government has said, yep, we're ready to do these as part of these plans. You're right, the actual spending so far, just over $2 trillion.
[Harris:] My goodness. All right, Josh, appreciate it. Thank you.
[Levs:] Thanks, Tony.
[Harris:] College students are feeling the pressure of rising tuition in these uncertain times. As part of my "Class in Session" series, hear how troubled these future leaders are about making the grade and meeting their financial obligations.
[Unidentified Female:] My parents wanted so much for me, and at times it feels like I can't deliver it, because I'm here for an education. My tuition here is actually, with the hope, is more expensive than my sister's was, and my sister is only four years older than I am.
[Harris:] Is that pressure on you?
[Unidentified Female:] That's a lot of pressure on me, actually, to keep up that level of perfection that you need to have in order to make it in this country.
[Harris:] Wow. More frank talk with these bright young students tomorrow. Another installment of my "Class in Session" series. That's Friday, noon Eastern right here in the CNN NEWSROOM. President Obama in Canada. What Canadians think he should know about our neighbor to the north.