Schwarzenegger Pledges To Veto Democratic Proposal for Budget
On Thursday, Gov. Arnold Schwarzenegger (R) pledged to veto an $18 billion plan by Democrats that includes $7.3 billion in cuts to health care, schools and other programs as a step toward addressing the state budget deficit, the Los Angeles Times reports.
California's deficit is projected to hit $41.8 billion by 2010.
The Legislature approved the package of bills yesterday.
The plan is projected to increase revenue by $9.3 billion through a series of maneuvers that would result in increases to some taxes and fees.Â The plan centers on a legal distinction between taxes -- which require two-thirds legislative approval -- and fees -- which require a simple majority approval (Rau/McGreevy, Los Angeles Times, 12/19).
It also includes Schwarzenegger's proposal to exempt small hospital renovation projects from review by state officials (Herdt, Ventura County Star, 12/19).Â The Democrats' plan aims to expedite more than $3 billion in public spending on hospitals and other construction projects as part of an economic stimulus effort.
Schwarzenegger's Sticking Points
Schwarzenegger said he would reject the Democrats' plan because it did not include all of his proposals for an economic stimulus package and did not go far enough in spending reductions (Los Angeles Times, 12/19).Â He said that the plan "fell short on every single level."
Schwarzenegger is expected to call another special session of the legislature, possibly as early as today, the Star reports (Ventura County Star, 12/19).
According to the Times, the legislation had not been sent to the governor late Thursday, and legislative staff said that lawmakers would resume discussions with the governor's office (Los Angeles Times, 12/19).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.