Looks like another chess move - Gov. Arnold Schwarzenegger is preparing layoff notices to 20,000 state workers, an action he has delayed since Friday. From the LAT:

Schwarzenegger's move is the second in which state workers have felt the impact of the crisis, following his decision forcing them to take two days a month off without pay. He has since reached a contract deal with a union representing 95,000 employees to cut the furlough days to once a month, although the workers have yet to ratify it. With his layoff plan, Schwarzenegger hopes to eliminate 10,000 jobs, but is sending out more notices in case the state meets with obstacles, legal or otherwise, in laying off certain workers.

Meanwhile, there appears to be very progress today in resolving the budget impasse. Another vote could happen tonight, though that will probably depend on whether the Democrats can find one more Republican vote.