Gov. Arnold Schwarzenegger threatened to veto the budget legislation that was negotiated by the California state house and senate, because the budget did not meet with his demands. He wanted to protect the state’s rainy day fund from being raided. He also did not want California taxpayers to have their taxes withheld early, so that tax revenues would be available faster in an act of creative accounting.
The legislature could have enough votes to override a veto, so they threatened to override the veto. The LA Times recounts the Governor’s response:
More than 800 bills that lawmakers passed this year hang in the balance. On Tuesday, when Schwarzenegger issued his budget veto threat, he also declared that if lawmakers were to override him, he would reject most of the legislation.
The legislators have taken the Governor’s threat seriously. They have renegotiated a new budget that meets all of the Governor’s demands. Score another one for Arnold.
