The Associated Press reported on Monday that Gov. Arnold Schwarzenegger may not sign the state budget before he is termed out of office in January.
The state is facing a $19 billion deficit for the fiscal year which began on July 1.
"If I don’t get what I need, I will not sign it and it could drag on to the next governor," Schwarzenegger said after meeting with the Los Angeles Area Chamber of Commerce on Monday. The governor wants pension, tax and spending reforms added to the new budget.
California has been without a budget for four weeks. If a budget is not passed soon, the state controller’s office would have to delay payments to local agencies and possibly send out IOUs, an action taken last year. The state has enough cash until August, according to the state controller’s office.
A new ballot measure could speed things along in the future when it comes to the state’s budget. Proposition 25, if approved by voters in November, would let the state Legislature pass a budget with a simple majority. Currently, they need a tw0-thirds majority to pass a budget. California and Rhode Island are the only states with a two-thirds vote requirement.
Schwarzennger said he would oppose the initiative because he believes it would give the dominate party more power. "One party will make all the decisions," he said.
