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Calif. Lawmakers Return, Resume Budget Talks

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Jan 5, 2009 6:37 pm US/Pacific

Calif. Lawmakers Return, Resume Budget Talks

SACRAMENTO (CBS 5 / KCBS) ― State lawmakers opened a new special session in Sacramento Monday; their third attempt to close a growing budget deficit that could reach $40 billion over the next 18 months.

No official progress was announced, but Republicans appeared willing to talk about possible tax hikes. Previously, GOP lawmakers vowed not to support any kind of tax increase.

Under the right conditions, some Republicans are softening their position, according to GOP Assembly leader Mike Villines of Clovis. He says those conditions must include ways to avoid having another budget crisis in the future.

Meanwhile, the governor's office said talks with Democratic leaders remain stalled. Democrats want a mix of tax hikes and spending cuts, but Aaron McLear, the governor's press secretary, said the budget needs to be balanced out with real economic stimulus.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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© MMIX, CBS Broadcasting Inc. All Rights Reserved.