While firmly rejecting suggestions of US forces mired in a guerrilla war in Iraq, Defense Secretary Rumsfeld said it will take "some time" to quell armed resistance by loyalists to the former regime of Saddam Hussein. In the meantime, the Bush administration is in talks with some 20 nations on contributing to a multinational force there, Rumsfeld said at Monday's news briefing. Sen. Joseph Biden (D) of Delaware, who recently visited the Gulf state, has said as many as 60,000 troops are needed to end daily attacks that have killed 28 American and British soldiers since May 1. (Stories, page 1; related opinion, page 9.)

On the first day of the new fiscal year, California was among six states without a budget. Lawmakers remained locked in a bitter partisan debate over spending and taxes to address a record $38.2 billion deficit - complicated by a recall effort aimed at Gov. Gray Davis (D). Above, state Sen. Gil Cedillo (D) massages one tired colleague while strategizing with another during a break at the Capitol in Sacramento. Oregon, Connecticut, Nevada, New Hampshire, and New Jersey also continue to work on spending bills amid some of the largest deficits in 50 years.

In the biggest drop in a year, construction spending fell 1.7 percent in May to a seasonally adjusted $869.8 billion, the Commerce Department reported. Another economic indicator also disappointed analysts. The Institute for Supply Management said its manufacturing index rose slightly to 49.8 in June, below the anticipated 51.0 reading. A reading above 50 indicates growth.

The University of Miami accepted an invitation to join the Atlantic Coast Conference (ACC), a shift that will enlarge that league to 11 schools next year. Miami followed fellow Big East Conference member Virginia Tech in making the move, dealing a heavy blow to the latter league's prestige and revenue potential. Four of the six remaining Big East schools are suing over the ACC expansion.

Heavy rains and flooding from tropical storm Bill left 100,000 homes and businesses without power in southeastern Louis-iana, and Gov. Mike Foster (R) declared a statewide emergency. The Coast Guard was searching for a fishing boat reported missing in the Gulf of Mexico. The storm was losing strength as it tracked northeast, with tornado watches posted for parts of Alabama.

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