Gov. Arnold Schwarzenegger has put his foot down to the compromise budget proposal being considered by the California lawmakers. He has refused to sign the budget if some fundamental changes are not undertaken.
In his letter to the four legislative leaders, Schwarzenegger wrote: “I have been very clear this entire year that I would be unable to sign a budget without meaningful budget reform.”
Hence, the Governor has yet again clarified his opinion about two main changes he desires about restricting future spending – additional finances in a rainy day fund and tighter controls with respect to situations in which the money can be spent. “Without these changes, I can not sign this budget,” he wrote.
The Associated Press got hold of this letter as the state Assembly met to consider a proposal for putting an end to the state’s record-long budget impasse.
If the ‘patchwork’ proposal works, it might help to close the state’s deficit of $15.2 billion, without borrowing or without any new taxes. However, lawmakers assert that even then it will be difficult to solve the persisting fiscal problems.
As the fiscal has already started on July 1, the state has still not been able to make billions of dollars in payments to schools, healthcare clinics, day-care centers and other service providers, due to the absence of a budget.
In case the lawmakers decide against the changes in the plan, it can be vetoed by Schwarzenegger. This would imply that lawmakers, in order to overrule the Governor’s decision, will require the same two-thirds majority that was required to pass the plan in the first place.