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Calif. Assembly Speaker Challenges GOP On Producing Budget Plan

SACRAMENTO (CBS / AP) -- One of the state's leading Democrats on Tuesday challenged Republican lawmakers to come up with their own budget plan that can get Democratic support or work with their counterparts across the aisle on a balanced approach that includes tax extensions.

Assembly Speaker John Perez said Republicans have run out the clock on Gov. Jerry Brown's plan for a June special election on tax extensions, so he is challenging GOP lawmakers to come up with a plan of their own.

In response, Assembly Republican Leader Connie Conway said her members have put forward solutions and challenged Democratic lawmakers to pass cuts proposed by the governor that were rejected by his party as too severe, including ending welfare for poor children after four years.

"Despite the fact that every budget solution offered by Republicans has been summarily dismissed by Democrats to date, we will continue to offer more budget solutions," Conway said.

Perez, a Los Angeles Democrat, said a budget that closes what had been a nearly $27 billion deficit entirely with spending cuts is not a viable solution.

He announced that Assembly Democrats will hold budget summits throughout the state, emphasizing the need for tax extensions.

"It's clear the Republican legislators acted irresponsibly throughout this process, and they need to now step up and act like responsible leaders," Perez said.

The Legislature has approved $11.2 billion in cuts and fund transfers to help close part of the state's $26.6 billion budget gap for the fiscal year that will start July 1. To fill the remaining gap, the governor and Democratic lawmakers want to extend temporary tax increases to state sales, personal income and vehicle taxes that will expire this year.

Brown, who is scheduled to address a Bay Area business group later Tuesday, wants them renewed for five years. No Republicans have supported that plan so far.

Democrats have wide majorities in the Assembly and Senate but two Republican votes are needed in each house to reach the two-thirds threshold required for approving a ballot measure or tax increases.

GOP leaders say voters previously rejected tax hike proposals.

Brown said he supported some of the reforms sought by Republican lawmakers, including a state spending cap, changes to the pension system for public employees and streamlining business regulations.

But after progress was made on those issues, the Republicans issued a much longer wish list that included items not related to the state budget debate and corporate tax breaks that would cost the state billions of dollars a year, Brown said.

Conway said she has heard from Californians who don't want to pay for increased state spending while the state's unemployment rate hovers above 12 percent.

"The working families I talk to when I go to the grocery store, attend church or speak at community events are struggling to make ends meet. Some are having a tough time just finding a job," Conway said.

Because the June special election is no longer option, Perez says he is now hoping lawmakers will either pass tax extensions on a vote of the Legislature by the June 15 budget deadline or approve provisions that require voter ratification afterward.

"If they don't like our approach, they need to put forward their own plan in full view of the public and we will ensure that their plan is fully vetted," Perez said. "Failing that, they have an obligation to work with us to find new revenues to close our deficit."

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)

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