Lawmakers- Governor Appear to Reach Deal
It appears the Governor and state legislative leaders have reached an agreement on a budget deal – that will avoid Schwarzenegger’s threatened veto.
Thursday, September 18, 2008
Governor Schwarzenegger and legislative leaders met twice Thursday to work out an agreement that will end the state’s nearly three month long budget stalemate. Lawmakers approved a budget plan earlier in the week but Schwarzenegger threatened to veto it. Senate President Pro-Tem Don Perata says the Governor was firm about what changes he required.
“His vote is bigger than 120-votes. And he laid down what he wanted, he said he was not going to relent. ”
Lawmakers will drop a controversial plan to bring in money by increasing tax withholdings from Californians’ paychecks. Instead they’ll double penalties on corporations that underpay their taxes by a million dollars or more. The agreement also makes changes to the “rainy day fund”—with rules about when the money can be taken. The lengthy impasse was drawn out amidst disagreements over raising taxes— Democrats and the Governor brought up different plans to do so—which Republicans rejected.