SACRAMENTO — Two weeks before the special election, the head of the state Senate continued Wednesday to warn that Californians face dire consequences if voters reject budget-related measures on May 19.
The measures include a spending cap that would extend newly enacted tax hikes for up to two years and a plan to borrow up to $10 billion against future revenue from the California Lottery, according to Senate President Pro Tem Darrell Steinberg (D-Sacramento).
Even if the six measures pass, the state will face an $8-billion budget shortfall, according to recent projections. Steinberg said he is confident the situation can be fixed by borrowing from the lottery and tapping the $2-billion reserve fund set up in February when the state approved a budget.
Gov. Arnold Schwarzenegger said this week that rejection of the ballot measures could force firefighters to be laid off and local governments to make up to $2 billion in cuts. Opponents of the ballot measures have called such proclamations "scare tactics."
"Is it a scare tactic? No. It's reality. The numbers are the numbers," Steinberg told reporters at a Capitol news conference Wednesday.
Steinberg said that talks are underway on how to plug a budget hole of $18 billion or more if voters say no May 19.
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patrick.mcgreevy@latimes.com
