No Progress On Budget

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(Sacramento, CA)
Monday, June 20, 2005
 Democratic Assembly Speaker Fabian Nunez says a compromise is possible, but the governor needs to stop accusing the Democrats of trying to raise property and sales taxes.   "Oh, of course we’ve had confidential meetings with the governor.  But have I proposed in a serious way to raise taxes, either publicly or privately?  Absolutely not! "                       Assembly Democrats did force a vote last week on an income tax hike for the state’s wealthiest earners, but it failed to win the needed two-thirds majority. Republican Assembly leader Kevin McCarthy says any budget compromise must include more spending cuts. "We have to be able to move forwards and we have to stop being the only state in the union that automatically gives increases to welfare without looking at everything else.  That’s a big sticking point.  And we’ve gotta be able to discuss and make those changes. "                      McCarthy and Nunez were scheduled to meet late in the day, but there was no indication that the Governor would be a part of the negotiations.