Gov. Arnold Schwarzenegger has threatened to veto the Assembly's "Race to the Top" bill if it is sent to his desk.
"This is Race to the Top -- not race to the status quo. We must make the necessary reforms to improve our schools and make California highly competitive for this federal education funding. The Assembly bill is a step backwards and if it reaches my desk -- it will be vetoed," he said in a statement.
Schwarzenegger's threat comes a day after the Assembly Education Committee blocked the Senate's version of the legislation, which was based on his plan for ensuring California can cash in on hundreds of millions of dollars in "Race to the Top" federal education funds. The Assembly bill, which has the support of the California Teachers Association, passed out of the committee on a 10-6 vote.
Schwarzenegger and his backers say the Assembly bill falls short of the Obama administration's eligibility guidelines for states seeking the funds.
The Assembly Appropriations Committee was scheduled to consider the Assembly bill this morning, with a floor vote expected to follow this afternoon.
That hearing has been delayed, as negotiations on the bill language continue and Assembly Democrats continued talks to finalize their speaker selection.
If passed by the Assembly, the bill will still need Senate approval. The Senate has scheduled a floor session for next Thursday.

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