More hints that budget deal is close

Gov. Arnold Schwarzenegger says that the Legislature might vote on a state budget within the next week or so. Schwarzenegger and legislative leaders are scheduled to meet tonight in his Sacramento office. Meanwhile, state Treasurer Bill Lockyer says he is lining up a short-term loan of more than $5 billion from a groups of Wall Street banks. From Bloomberg:

The state may borrow the money from Bank of America Merrill Lynch, JPMorgan Chase & Co., Goldman Sachs Group Inc. and RBC Capital Markets once a budget is enacted and would repay the funds with an estimated $10 billion of notes it will sell in October or November, Lockyer said today in New York. The state can't issue those notes until a budget is signed.

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The Department of Finance has identified about $6 billion of bonding needs through the end of November. Lockyer has been waiting to sell the debt pending approval of a budget. He has warned lawmakers and Schwarzenegger that they need to complete a budget by the end of next week to allow time to sell bonds needed to keep funding public works projects.