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Feinstein: Compromise Necessary on State Budget

The governor and the legislature are facing criticism from California Senator Dianne Feinstein as the state enters the second-longest budget impasse in its history.

Feinstein said she was concerned about the state's ability to function as the stalemate wears on.

"Every day it costs California tens of millions of dollars, and so the delay makes no sense. I think you have to bite the bullet and you have to pass a budget and do so quickly," she said.

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Governor Arnold Schwarzenegger did not take the criticism kindly, lobbing back criticism the federal government had its own problems to solve.

He said a deal to close California's $19 billion deficit was very close.

"We have 120 very creative legislators out there that have their own way of thinking, OK? The bottom line is that just because there's inaction in the legislature does not mean there should be inaction in this governor's office," Schwarzenegger said.

The governor embarks on a six-day trade mission to Japan and Korea on Thursday.

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