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With the Clock Ticking Governor Rejects Democratic Budget


Governor Arnold Schwarzenegger is soundly rejecting a sweeping package of tax increases and spending cuts put forth by Democratic lawmakers. They approved measures yesterday/Thursday by simple majority votes to address part of the state's nearly $42-billion budget shortfall. Jenny O'Mara reports.

Governor Schwarzenegger called the Democrats' plan a 34e "terrible budget". He says their $18-billion package of tax increases and spending cuts only hurt the people of California. He urged lawmakers to keep at it.

Schwarzenegger:  "I don't think that anyone should go and celebrate Christmas. None of the legislators, and have people out there suffering. I think the legislature owes it to the legislature to solve this problem before Christmas…"

Schwarzenegger says he wanted more in the way of economic stimulus proposals-including help for those in danger of foreclosure. Democrats say their plan is a dent in the state's problem-and the only one with any votes.

Republican lawmakers had denounced the move to raise taxes as illegal-and were preparing to fight it in court. The State Controller has warned California could run out of cash as early as February.

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