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Schwarzenegger Optimistic About Budget Session

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Schwarzenegger Optimistic About Budget Session

LIVERMORE (CBS 5 / AP) ― At a visit to Lawrence Livermore Laboratory on Monday, Gov. Arnold Schwarzenegger said he has no regrets about calling lawmakers back to work and is confident they will be able to address California's $11.2 billion budget deficit.

In declaring a special legislative session last week, the governor proposed a 1 ½-cent sales tax increase and $4.5 billion in spending cuts.

Schwarzenegger may hope that lawmakers facing the end of their terms will be more willing to approve a tax hike.

In all, 32 lawmakers are being termed-out, one more if counting Sen. Carole Migden, D-San Francisco, who will be forced out of her seat early after losing her re-election bid to Assemblyman Mark Leno, D-San Francisco.

The new California Legislature will be seated on Dec. 1.

"Why would I go with legislators that are complaining, 'Why do I have to go back now to work again? I thought that I'm finished.' Well, hello? You're all getting paid still," he said.

Schwarzenegger made his remarks after a tour of the Lawrence Livermore's National Ignition Facility, the world's largest laser. The governor also was briefed on an experimental technology that could use a similar laser system to generate carbon-free electricity.

Just weeks ago, Schwarzenegger signed an overdue state budget that was intended to close a $15.2 billion deficit with program cuts, accelerated tax collections and accounting gimmicks.

The rapid pace of decline in the national and state economies since then has reopened an $11.2 billion gap that threatens to widen even further.

Last week, Schwarzenegger proposed $4.5 billion in spending cuts to schools and social service programs and $4.7 billion in new revenue. That included the sales tax hike, which would last for three years.

Schwarzenegger also outlined a plan to expand the sales tax to more services. That would include vehicle repairs, appliance and furniture repairs, veterinarian services and even greens fees for playing golf.

On Monday, he said he expected "lively debates" about potential solutions but in the end believed lawmakers would act responsibly.

"I think that it will work. I think that everyone wants to go out and say, 'We have really accomplished a lot and we have fixed the problem,"' he said.

Schwarzenegger's proposal faces criticism from Democrats and Republicans.

Assembly Speaker Karen Bass, D-Los Angeles, said she would oppose some of the governor's cuts to social service programs. Republicans, a minority in both houses but needed to pass budgets and tax hikes, remain steadfastly against raising taxes.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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