Jun 28, 2009 10:10 pm US/Pacific
Calif. Lawmakers Try Again To Close Deficit
LOS ANGELES (AP) ―
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California Governor Arnold Schwarzenegger offered new moneysaving proposals on funding state pension benefits and administering health and human services programs. (File)
Justin Sullivan/Getty Images
The state Assembly has approved part of a Democratic budget plan that would raise $2.4 billion through higher taxes on tobacco, oil drilling and vehicle licenses.
The revenue portion of the Democrats' overall budget package was approved on a simple majority vote, 44-30. Yet Republicans questioned whether the action was constitutional because tax increases in California require a two-thirds vote.
Despite a debate that lasted nearly two hours, the Assembly action late Sunday night was largely symbolic.
Gov. Arnold Schwarzenegger has said he would veto the 14-bill package if it reached his desk, primarily because he objects to the new taxes and fees.
Lawmakers convened Sunday night as the state was just days away from issuing IOUs because it will not have enough money to pay all its bills.
(© 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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