Part of the Bay Area News Group

A state budget fix? Not yet.

By epearlman
Friday, December 19th, 2008 at 7:37 am in California, Schools, the economy.

Yesterday Gov. Arnold Schwarzenegger said he will veto the budget proposal that the Dems passed yesterday. From the Sac. Bee:

California’s budget mess got messier Thursday as Democratic legislators approved a package of tax increases and spending cuts, Republican legislators threatened to sue over the package’s questionable constitutionality and Gov. Arnold Schwarzenegger made the issue moot by promising to veto it.

The Contra Costa Times has this:

Just when it looked like Democrats had devised a way out of their suffocating impasse with Republicans over the state budget, Gov. Arnold Schwarzenegger stepped in Thursday afternoon with this message: Not so fast.

In a dramatic day at the Capitol that alternately had on display exultant Democrats, angry Republicans and a frustrated Schwarzenegger, the governor announced he would veto a Democratic gambit to raise billions in new revenue.

By exploiting a legal loophole over the definition of taxes vs. fees, Democrats had hoped to sidestep the state’s two-thirds majority hurdle for raising taxes. But the part of the package that offended the governor most did not involve the end-run on taxes; instead, Schwarzenegger said the proposal did not go far enough to trim spending and stimulate the economy.

More up to the minute state budget info at Calitics.

[You can leave a response, or trackback from your own site.]