He is using the lag time to criticize lawmakers for approving what he calls a very bad spending plan that doesn't work year after year.
"Borrow from the future; kick the problem to the next year and with no serious budget reform. This is why I said, 'OK, you guys can pass the budget. You can sign the budget. But you are not getting to get my signature. I'm going to veto that budget,'" said Governor Schwarzenegger.
Legislative leaders agree their deal just pushes the problems into next year, but said it's best to override the governor's veto.
The budget is already almost three months overdue, and hundreds of programs that rely on state funding have gone without it since July 1.
Senate President Don Perata is prepared to offer the governor the one last budget reform proposal lawmakers failed to give him. That proposal will tighten the reins on California's "rainy day fund."
"If that would end it, yeah ... If that would end it. And then everyone could criticize us for that," said state Senator Don Perata (D-Oakland).