Posted on 06/15/2005 4:40:47 PM PDT by NormsRevenge
SACRAMENTO (AP) - Assembly Republicans rejected a $116.6 billion budget proposed Wednesday by majority Democrats despite its similarity to one proposed by Gov. Arnold Schwarzenegger, as the Legislature failed to pass a spending plan on time for the 19th consecutive year.
Voting along party lines, the budget plan failed on a vote of 45 to 32, seven votes short of the two-thirds needed.
In hopes of winning support, Democrats dropped plans to increase education spending by $3 billion next year and left in place Schwarzenegger's hard line against new taxes and borrowing while providing money he wanted for transportation.
While the proposal was aimed at cultivating Republic support, GOP lawmakers said it would add to the state deficit by repaying a $600 million loan to local governments. They also said they did not have time to consider the massive document.
"Most of this budget, as usual, was done at the last minute," said Assemblyman Rick Keene, R-Chico, vice chair of the budget committee. "This budget is half-cooked."
Lawmakers have not met the June 15 constitutional deadline for passing a budget since 1986.
In addition to the loan payment to cities and counties, the two budget plans have several key differences. At $115.7 billion, the governor's plan is nearly $1 billion less expensive.
Democrats proposed spending $469 million for school pension payments - a bill that Schwarzenegger had proposed schools pay.
The governor also said he could attain $408 million in unidentified savings by changing labor agreements with state workers. The Democratic plan dropped that idea.
The two sides also have different estimates about how much tax revenue the state will receive next year.
Still, Assembly Speaker Fabian Nunez, D-Los Angeles, said the proposal closely reflected what Schwarzenegger proposed in May and forced his party to make concessions.
"We decided that instead of dragging this budget out, it would be in the best interest of the voters of this state to find some common ground," he said.
Other Democrats, however, were skeptical about the Republican motivation for not supporting the proposed budget - noting that the special election called by the governor for November is coloring the budget debate.
"This little game here today is about the November ballot," said Assemblywoman Jackie Goldberg, D-Los Angeles. "This has nothing to do with the budget."
Meanwhile, in a separate action, the Assembly also turned down a Democratic plan to raise taxes on the state's wealthy to fund education.
It failed on a vote of 46 to 32, eight votes short.
The tax plan, which would provide about $1.2 billion a year for schools, would have imposed 10 percent tax rates on couples earning $285,000 a year and 11 percent on those earning $570,000 or more annually. Currently, the highest tax rate is 9.3 percent.
The state Senate was also scheduled to vote on the budget plan Wednesday, but Republicans are also not expected to support the plan.
It is unclear where the budget debate goes next, although the governor's Finance Director Tom Campbell said Tuesday that the differences between the two sides were not insurmountable.
Party leaders are expected to meet with Schwarzenegger in coming days to work out their differences.
But with the governor and Democratic leaders gearing up for a major fight over a variety of November ballot measures, there is uncertainly about how much they will compromise.
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On the Net:
Gov.'s home page: http://www.governor.ca.gov/state/govsite/gov-homepage.jsp
California Senate: http://www.sen.ca.gov/
California Assembly: http://www.assembly.ca.gov/acs/defaulttext.asp
Surely the Arnold bashers will show up shortly.
Let me get it started: That Arnold is nothing but a Democrat, constantly giving in to the special interests.
Now now,, ;-)
We are here to inform the public, call 'em the way we see 'em, let the chips fall where they may and not just bash for bashing sake. ;-)
btw, I have seen him described as a libertarian, a Green, a Republican, an elitist, for starters. and now democrat.
(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
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