Senate President Pro Tem Don Perata today welcomed Gov. Arnold Schwarzenegger's proposed 1-cent sales tax hike as "a start," but declared budget negotiations are at an impasse and said he does not expect a quick resolution.
Perata's comments, following a Senate session, were his first since Schwarzenegger proposed the temporary sales tax increase over the weekend in an effort to bridge the state's $15.2 billion deficit and bring an end to the 36-day budget standoff.
"I'm glad the governor has come around to saying publicly what we've known all along - that we have to have taxes in order to correct the problems we're in right now," said Perata, D-Oakland. "So I say it's a start."
Perata said he had not discussed the Republican governor's proposal with his caucus, but said Democrats would prefer increasing taxes on high-income earners.
The senator said the governor "doesn't have any support in his own party" for his sales tax proposal.
"We are now at loggerheads - this is an impasse," Perata said, adding that leaders from both parties have stopped negotiating "because there's no solutions here."
Perata said he's told Democratic senators not to plan to attend the Democratic National Convention, which will be Aug. 25-28 in Denver.
"I've told everybody ... don't plan to be there for the convention," Perata said. "I don't see (the budget stalemate) ending for quite some time."
Call Aurelio Rojas, Bee Capitol Bureau, (916)326-5545.
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