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Can't help it folks - the news just stinks. An $18 billion package of tax increases and cuts being proposed by Democratic leaders appears headed for the dustbin. They sent the proposal to Gov. Ahnold this afternoon, but he has promised to veto it. Just to be sure, GOP lawmakers are ready to go to court over the legally shaky plan. From the LAT:
Schwarzenegger had indicated that he would sign the tax hikes into law if Democrats cut more services, relaxed some environmental laws and opened government construction projects to private contractors. Absent such changes, he said, a veto was certain. Democrats said today that they are unable to meet all the governor's demands.
The state is quickly running out of money, and officials are preparing to halt billions of dollars in payments beginning Feb. 1.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.