The California Senate's first budget vote fell three votes shy of passage Friday after Republicans opposed a temporary sales tax increase supported by Gov. Arnold Schwarzenegger and Democrats, leaving the state without a spending plan 61 days into the fiscal year.
Assembly Republicans earlier this month defeated a spending plan that would have boosted taxes on the top income bracket, a proposal Schwarzenegger opposed.
The two votes were widely viewed as drills intended to publicly air partisan differences. Barring a quick resolution this weekend, the Legislature will set a record for a late budget next week.
Senate Republican leader Dave Cogdill, R-Modesto, said the Senate plan, which can be reconsidered, gives his caucus "a document to work with."
"We expect very shortly, within 24 to 48 hours, we will have our proposal," Cogdill said after the vote.
During a news conference in San Diego before the vote, Schwarzenegger praised the $103.4 billion spending plan as "very courageous."
The proposal, which included a temporary three-year, 1-cent sales tax increase, was built on a proposal the Republican governor unveiled earlier this month.
But the Democratic plan did not lower the tax by 1.25 cents in the fourth year as Schwarzenegger had requested. President Pro Tem Don Perata, D-Oakland, said a "back-end tax cut" would leave the next governor to deal with the state's fiscal solvency.
A budget vote requires a two-thirds majority – 27 votes in the Senate. Friday's proposal got 24 votes with all 15 Republicans voting against it. One Democrat – Sen. Lou Correa of Santa Ana – abstained.
Sen. Bob Dutton, R-Rancho Cucamonga, said a tax increase "should be the last thing we do" because of the state's fragile economy.
"Increasing taxes will only put more Californians out of work and delay the economic recovery," Dutton said during the Senate debate.
Cogdill said the Republican counterproposal will be "more responsible" and balance the budget "without a tax increase."
With the state facing a $15.2 billion deficit, that would require deeper program cuts and borrowing, which the governor and Democrats oppose.
In a related development Friday, Secretary of State Debra Bowen declared the deadline has passed to add measures to the November ballot.
Schwarzenegger and Republican lawmakers have said that pairing a spending plan with an overhaul of the budgeting system is key to striking a deal.
Call Aurelio Rojas, Bee Capitol Bureau, (916) 326-5545.
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