Wednesday, January 7, 2009
Governor Arnold Schwarzenegger says he will restart stalled budget talks in hopes of getting an agreement to deal with California's projected $42 billion deficit. The Republican governor says he'll ask the Legislature's four top leaders to meet with him Thursday to try once again to reach a compromise.
Schwarzenegger: It is time for Republicans and Democrats to put politics for once and for all aside to make the tough choices needed to keep our state from financial disaster that would take years to recover from. It's not enough for Republicans just to say that we want to see first the cuts before we even talk about revenues.
Schwarzenegger yesterday vetoed an $18 billion Democratic budget package that included new taxes and state program cuts. Schwarzenegger says the plan didn't do enough to cut spending and clear the way for public works projects.
Democrats and Schwarzenegger want a combination of tax increases and spending cuts to deal with the deficit. So far, Republicans have balked at any tax hikes.