
SACRAMENTO, Dec. 24 (UPI) -- California's legislative analyst says the governor erred in ordering cities and counties be repaid for funds lost when he cut the vehicle license fee.
Upon taking office last month, Gov. Arnold Schwarzenegger revoked a $4 billion annual hike in the so-called car tax, the Los Angeles Times reported Wednesday.
Because cities and counties depend on the tax to fund services, Schwarzenegger asked the Legislature to compensate for the loss by sending other money to local governments.
When lawmakers adjourned for the year without offering any solution, the governor declared a fiscal emergency and independently directed that cities and counties start being repaid from the state's general fund.
In a letter made public Tuesday, Legislative analyst Elizabeth G. Hill called the governor's order to make $2.6 billion in payments without approval of the Legislature a "flagrant misuse" of his budget powers and "a serious infringement of legislative powers."
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