Schwarzenegger threatens not to sign budget
The governor says he wants the proposal changed to further restrict future spending.
SACRAMENTO — Gov. Arnold Schwarzenegger has told lawmakers that he will not sign the budget they are poised to approve tonight unless it is changed to further restrict future spending.
The governor made his threat in a letter to legislative leaders obtained by The Times. He sent it as the Assembly and Senate prepared to vote on a budget proposal that does not include new taxes and relies heavily on accounting maneuvers that push much of the state's $15.2-billion shortfall into the future. Legislative leaders have expressed confidence that the plan would be approved.
But Schwarzenegger said the proposal, which would bolster the state's rainy day fund, does not go far enough to limit future spending.
"I have been very clear this entire year that I would be unable to sign a budget without meaningful budget reform," the governor wrote.
He demanded that the proposed spending plan be changed to require more deposits into the rainy day fund and make it tougher for lawmakers to suspend deposits into the fund or raid the fund.
"Without these changes, I can not sign this budget," he wrote.
The threat comes as the state appears to finally be nearing an end to the longest budget impasse in recent history. The fiscal year began July 1, but the state has been unable to make billions of dollars in payments to schools, healthcare clinics, day-care centers and other service providers in the absence of a budget.
If the plan were to be approved but then vetoed by Schwarzenegger, lawmakers could override him with the same two-thirds majority required to initially pass it.
evan.halper@latimes.com
jordan.rau@latimes.com
