It’s the Democratic spending plan that lawmakers are expected to take up in both houses of the legislature. It includes cuts to education and health and social programs. But it also includes new taxes on oil, car registrations and tobacco. And that’s something both Republicans and Governor Schwarzenegger oppose. Despite that, Democratic Assembly Speaker Karen Bass and Senate Leader Darrel Steinberg told reporters recently a deal would be worked out quickly:
“It is not going to be a lengthy stalemate. No, it won’t. It’s just not. We’re going to surprise you all. I hate to disappoint you.”
Republicans and Governor Schwarzenegger also want a budget plan that includes a bigger state savings account. The pressure to balance the state’s budget is mounting. The State Controller says California will run out of cash next month.