Legislators of both parties have agreed on a state budget without including Governor Schwarzenegger in their negotiations. He says he'll veto it, but they're claiming the votes to override. On Reporter's Notebook, former and current LA Times reporters are taking Sam Zell to court.
FROM THIS EPISODE
The longest budget stalemate in state history is not over yet. Governor Schwarzenegger says he'll veto the plan finally approved this week by both parties. He says it contains "fake budget reform" and makes the fiscal crisis even worse because "it kicks that can down the alley" into next year.
When Sam Zell bought the Tribune Company, including the LA Times, he only invested $315 million. The $8.2 billion arrangement burdened the company with $13 billion in debt, in a so-called Employee Stock-Ownership Plan. But that ESOP also made the employee pension plan the majority owner, and that may come back to haunt Zell.