Governor rejects Democrats budget due to tax increases

June 17, 2:17 PMCalifornia Statehouse ExaminerScott Sabatini

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Gov. Arnold Schwarzenegger has said he won't approve additional tax increases./AP

Democratic leaders talked boldly about getting a budget done quickly this time around. But under the typical pressure for powerful lobbies and special interest groups to increase taxes, the Democrats presented a budget Gov. Arnold Schwarzenegger said he simply won’t sign, according to a report by the Sacramento Bee.

"I cannot sign a budget that has tax increases in it," Schwarzenegger, a Republican, said after meeting with the legislative budget committee.

The Legislature’s joint budget conference committee adopted a budget plan that included taxes and a cigarette tax to shore up the state’s $24 billion budget gap. Republicans opposed the plan.

In the past Schwarzenegger has gone against his own party to reach a budget compromise that included taxes, but since a solid rejection of those plans by voters during a May 19 election, the governor has sworn off all new taxes.

"To now, four months later, come out with another tax increase is irresponsible," the governor said.

Schwarznegger also said Democrats must deal with strong public opinion that state workers need to face stiffer cutbacks than already in place. Schwarzenegger also wants the budget to make long-term fixes rather than one-year stop-gaps, he said.

The state has dealt with the fallout from its ongoing budget problems, including the worst credit rating possible among states. Sacramento Bee columnist Dan Walters described the situation as on the verge of becoming “an international laughingstock.”

 Republicans have their position about as clear as can be, while leaning on voters who have backed their anti-tax stance at every turn. That has done nothing to pursuade Democrats to try a new aproach. The Republican response is here, in a short YouTube video:

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