On October 8, Governor Arnold Schwarzenegger signed the 2010-11 Budget Act for the State of California. This budget was the outcome of many months of negotiation between the Governor and the Legislature. The Governor vetoed $963 million in spending from the Legislature's budget, arriving at a budget that addresses an estimated $19.1 billion shortfall. The final budget includes $86.6 billion in General Fund spending, up slightly from 2009-10. As signed, the budget was projected to end the 2010-11 fiscal year with a $1.2 billion reserve. More recent information shows a projected budget deficit of $6.1 billion for 2010-11, and a $25.4 billion deficit through the end of 2011-12. The Governor has called for a special legislative session to address the budget shortfall to be convened on December 6 when the new Legislature is sworn into office. This paper presents the update on California's 2010-11 state budget and discusses the state's ongoing budget deficit. (Contains 2 tables.)