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Rumors Fly in Sacramento About a Budget Compromise

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Aired 4/19/09

It's budget season around the state Capitol and that means rumors fly just about every day. Wednesday's included an early report of a compromise. From Sacramento Jenny O'Mara reports.

 

An early report that the Democratic head of the state Senate and Governor Schwarzenegger had reached a budget deal created quite a buzz. But later, Senate President Pro-Tem Don Perata defused the news, saying instead the parties were at an "impasse" once again.

 

Perata: We've made lots of concessions and we've moved in the direction the Governor's asked us to move. We're not gonna give up next year to satisfy next year and that's what a lot of people around here want to do.

 

Perata's talking about borrowing-and says he doesn't want it. Reports of the deal said it included limits on future state spending and a bigger rainy day fund, things Republicans have asked for. It also reportedly includes a temporary one-cent sales tax increase. The plan would need GOP votes.  Republican Senator Roy Ashburn said he'd look at it, if it also included tax credits for business. There were also rumors of a budget vote this weekend. Perata says only that a vote will come eventually.

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