California Senate Republicans Oust Leader Over Budget (Update1)
By William Selway and Michael B. Marois
Feb. 18 (
Bloomberg) -- California Senate Republicans’ ouster of their leader for negotiating a budget agreement with Governor Arnold Schwarzenegger and Democrats posed new challenges to a deal to close the state’s $42 billion shortfall.
The new Senate Republican minority leader Dennis Hollingsworth of Murrieta said $14 billion in tax increases included in the budget package must be removed and negotiations over how to fix the deficit reopened. The governor rejected the call.
“We don’t want to see taxes increased,” Hollingsworth told a growing number of reporters as the five-day, around-the- clock session continued. “We have to get spending more in line with revenues rather than just increasing taxes.”
The agreement stalled after Senate leaders and Schwarzenegger fell one vote short of the three Republicans needed for approval. The new leadership signaled renewed opposition to the plan. While Democrats control both chambers of the Legislature, taxes and budgets must be approved by a two- thirds supermajority equal to 27 of 40 seats in the Senate and 54 of 80 in the Assembly.
The Republican governor and Democratic lawmakers have backed a $40 billion package of tax increases, spending cuts and bond sales to close the shortfall through June 2010. ........(more)
The complete piece is at:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aaz3nkaiY2NM&refer=home