SANTA MONICA, CA - JULY 20: A demonstrator mocks California Gov. Arnold Schwarzenegger for remarking that he relaxes in his jacuzzi with a cigar after each day of dealing with the state economy as activists rally near the Santa Monica Airport, where Gov. Schwarzenegger commutes between his home in Brentwood and Sacramento, to protest budget cuts proposed by the governor on July 20, 2009 in Santa Monica, California. State legislators continued bickering over the weekend, blaming one another for a scheduling problem that pushed negotiations on the budget meltdown back another day. With massive cuts to state services and welfare, and layoffs and cuts to worker salaries through three mandatory furlough days each month, California, one of the worlds largest economies, now pays its bills with IOUs and its credit ratings have faltered. Just 4 1/2 months after closing the previous $42 billion deficit, legislative leaders and the governor are again trying to solve the state budget crises. Unresolved issues include borrowing from local governments, whether to guarantee repayment of lost school funds and how state money to save for future emergencies.