Schwarzenegger Says He Will Veto Calif. Budget

SACRAMENTO (AP) – Gov. Arnold Schwarzenegger has rejected the budget sent to him hours earlier by the Legislature, criticizing it for failing to meet his reform demands and solving California’s persistent fiscal problems.

The announcement marked the first time in modern history that a California governor would veto a state spending plan.

It set in motion a historic showdown with the Democratically controlled Legislature, which has said it is prepared to override the governor’s pending veto.

Schwarzenegger’s announcement during a Capitol news conference Tuesday came after a record-long budget stalemate that forced the state to delay billions of dollars in payments to schools, medical clinics, daycare centers and state vendors.

Lawmakers finally cobbled together a patchwork spending plan on the 78th day after the start of the fiscal year, passing a $143 billion budget shortly after 2 a.m. Tuesday.

He called the budget irresponsible and said the reforms it contained were phony: “I say enough is enough.”

(Copyright 2008 by The Associated Press. All Rights Reserved.)