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Gubernatorial hopefuls skip budget crunch

SACRAMENTO, April 1 (UPI) -- California Gov. Arnold Schwarzenegger and Democrats who want his job are saying little about how to solve the state's projected budget crunch, a report said.

The GOP incumbent, who is seeking re-election, and Democratic state Controller Steve Westly have proposed nothing concrete to deal with the state's budget shortfall, which is projected to hit $5 billion in three years, The Los Angeles Times reported.

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Democratic state Treasurer Phil Angelides, an opponent of Westly in the upcoming June primary, has suggested higher income taxes while closing tax loopholes -- but only to benefit schools.

"It's such a contentious issue that nobody wants to deal with it," economist Christopher Thornberg of the University of California-Los Angeles told the newspaper.

While Schwarzenegger has said economic growth will cure most of the state's budget ills, a UCLA report last week projected California's job growth will slow during the next two years due mainly to a weak construction industry.

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