LOS ANGELES -- California finance officials met Tuesday with a consortium of 18 banks to arrange creciit backing for $4 billion of the state's unprecedented $7 billion of borrowings planned next month:

The meeting occurred as the state's political leadership continued to grapple with how to resolve a budget impasse in time for the start of the next fiscal year on Friday. One problem holding up a budget is that lawmakers cannot agree on how to devise a so-called trigger mechanism that would guarantee repayment of the short-term borrowings.

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