Schwarzenegger Optimistic About Budget Compromise
SANTA CLARA, Calif. (KCBS) _ Governor Schwarzenegger said he is guardedly optimistic that he and lawmakers can reach a budget compromise in the weeks ahead.
During a business round-table Friday in Santa Clara, Schwarzenegger said Republicans and Democrats want to finish negotiations as quickly as possible.
"I would say that we are now, approximately $4 billion apart. So as time goes on, we will get closer and closer to that," he said.
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Schwarzenegger said the big challenge is agreeing to longer-term reforms on pensions and taxes. He said they are already five weeks late on passing a budget and the deficit grows about $50 million as each day passes.
Earlier this week, Democrats released a new budget plan that included some spending cuts, lowering the state sales tax, and increasing the vehicle license fee and personal income tax.
Republican lawmakers said they oppose the plan and Schwarzenegger said he remains adamant about not raising taxes.
