I keep saying this is all definitely leading to a government shut down next month. But really, I have no idea what will happen. All I know is the scenario remains unchanged. The Fiscal Cliff is 600 some odd million dollars big. Depending on what they decide not to fund, there are federal multipliers at stake that could do billions of dollars worth of damage to vital services.
Republicans have (or believe they have) very little political incentive to take that seriously. They calculate that they can spend the next month lying about "medicare faud," and making a show out of holding the line on taxes, and whatever the form of the resulting disaster might be, the voters will take it all out on the governor next year.
If they can get there while passing one of the "pretend" budgets, they will. If they can get there while crashing the whole state in the meantime, they will do that as well.
Update: Looks like the special session call is going out this afternoon.