SACRAMENTO, Dec. 18 (UPI) -- The California legislature Thursday passed an $18 billion plan to close a state budget gap but Gov. Arnold Schwarzenegger said he will veto the measure.
Schwarzenegger said the Democratic majority in Sacramento ignored his call to ease environmental rules to speed up new construction included in the plan, and intended to be an economic stimulus, the Los Angeles Times reported. He also wanted a greater role for private contractors in public projects to build schools, flood protection and roads.
"They thought I would sign it, that they could put the pressure on," he said.
Schwarzenegger did not object to increases in gas, sales and income taxes and cuts in state spending on education and healthcare. Democratic legislative leaders framed the revenue-raising elements of the measure as fees, rather than taxes, so the increases would not be subject to a state law requiring a two-thirds majority in the legislature to raise taxes.
However, some of Schwarzenegger's fellow Republicans said they will sue to have the measure invalidated.
Jon Coupal, president of the Howard Jarvis Taxpayers' Association, promised a referendum vote to roll back the 13-cent-a-gallon hike in the gas tax, the newspaper said.
