The Governor Grows A Spine - Turns Down Budget.

“NO”

Schwarzenegger to veto California budget, a first in modern times

California Gov. Arnold Schwarzenegger says he will veto a state budget passed after a 78-day stalemate, setting up a historic showdown with the Legislature.

As the San Francisco Chronicle explains, the proposed budget sought to close a $17 billion deficit for the fiscal year that began July 1 without new taxes, a demand by Republicans. It did so by requiring all taxpayers to make earlier and larger tax payments to the state government.

Schwarzenegger, a Republican, made the announcement this afternoon. The veto will mark the first time in modern history that a California governor has rejected a state spending plan. The Democrat-controlled Legislature has said it is prepared to override a veto.

Yesterday, about 12 hours before the last vote was taken at 2 a.m. today, the governor sent Assembly and Senate leaders a letter threatening the veto

"I have been very clear this entire year that I would be unable to sign a budget without meaningful budget reform," the governor wrote, stressing that spending cuts were needed.

State Treasurer Bill Lockyer, a Democrat, also assailed the budget plan, saying this morning that it "gives gimmicks a bad name."

"It's banana republic financing," Lockyer said. The spending plan relies on "phony money and phony estimates."

Update at 7 p.m. ET: "When they send me the budget, I will veto it," Schwarzenegger said at a Capitol news conference, the Los Angeles Times reports. "If my veto is overriden," he said, " ... hundreds of bills will be vetoed."