Jun 30, 2008 5:43 pm US/Pacific
Calif. Begins Fiscal Year With No Budget
SACRAMENTO (AP) ―
California lawmakers have missed the deadline to approve a state budget for the fiscal year that starts Tuesday.
Republicans and Democrats in both houses of the Legislature remain far apart on how to close the state's $15.2 billion budget shortfall.
Republicans, including Gov. Arnold Schwarzenegger, favor wide-ranging cuts to services and programs. Democrats want to raise taxes by anywhere from $6 billion to $11 billion.
Republican Leader Mike Villines said there is one thing the legislative leaders have said they agree on: A proposal from Schwarzenegger to borrow against future lottery earnings will not help solve this year's problems.
But Democratic Assembly Speaker Karen Bass said she will not rule out the plan, which would require voter approval in November.
The Republican minority wields more power than usual during budget talks. Democrats need some Republican votes in the Assembly and Senate to reach the two-thirds majority required to pass the spending plan.
Lawmakers are constitutionally required to pass a budget by June 15 and give it to the governor to sign by July 1. That's happened only a dozen times over the last 30 years. The last time lawmakers passed a budget by June 15 was 1986.
Despite that record of procrastination, Schwarzenegger said he is confident lawmakers can work out a deal before the delay seriously harms state programs.
During a news conference at the Capitol, a reporter asked Schwarzenegger if the state might run out of cash to pay for vital services. The governor reached into his front pants pocket and pulled out a money clip, flush with bills.
He grinned and said: "I still have some left."
(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
