from the LA Times:
Schwarzenegger says he will veto Democratic budget plan
The governor says the $18-billion plan passed today calling for higher taxes and spending cuts doesn't go as far as he'd like to stimulate the economy.By Jordan Rau and Patrick McGreevy
5:00 PM PST, December 18, 2008
Reporting from Sacramento -- Sidelining the Legislature's minority Republicans, Democratic lawmakers today passed an $18-billion plan to ease the state's financial crisis through higher gas, sales and income taxes and cuts to schools and healthcare.
But Gov. Arnold Schwarzenegger announced he would veto the package, saying it did not go as far as he wanted to stimulate the economy.
"I need exactly what I recommended recovery package," he told reporters an hour after the Senate and Assembly concluded voting. "I think they should stay here, work some more on this budget."
Schwarzenegger objected not to the package of new taxes and fees intended to reduce the state's budget crisis, but to details of provisions he demanded to help the state's ailing economy. He said the Democratic plan -- which would speed up more than $3 billion in public spending on construction related to hospitals, streets, housing, flood protection, parks and transit -- was "bogus" because it did not ease environmental rules as he desired to speed up such projects or allow a greater role for private contractors in public building.
"They thought I would sign it, that they could put the pressure on," he said.
Even before the votes, several Republican lawmakers and antitax advocates said they would file a lawsuit charging that the plan violates Proposition 13's provision that all tax increases require a two-thirds vote of the Legislature. .......(more)
The complete piece is at:
http://www.latimes.com/news/local/la-me-budget19-2008dec19,0,2571906.story