The budget crisis in California is becoming critical. The state is still paying its debt in IOUs, but major banks are refusing to accept them. Late yesterday, the state legislature was poised to finally pass a budget and close its $26 billion deficit, but the negotiations stalled over the governor's plan to suspend a law on school funding. Schools are likely to be one of the biggest casualties from this budget crisis. On The Takeaway with more of the story is KPCC Reporter Patricia Nazario.