Politics > Calif. Governor Warns of Tax Increase

California Governor Warns of Tax Increase if Voters Turn Down His Spending Measure

California Gov. Arnold Schwarzenegger is seen during a news conference in downtown Los Angeles, Friday, Sept. 2, 2005, held to ask California residents to help the victims of Hurricane Katrina. (AP Photo/Jae C. Hong)

The measure, considered the cornerstone of the governor's ballot agenda, would impose spending caps on everything from education to health care and criminal justice. It also would give the governor new power to make cuts without legislative approval.

However, a recent poll by the Public Policy Institute of California showed that Proposition 76 was favored by just 28 percent of likely voters, with 61 percent opposed and 11 percent undecided.

Schwarzenegger, who has until now been steadfast against new taxes, told a radio audience in Sacramento on Friday that if the spending cap is not approved he might have no choice.

"Then we have to look at raising taxes, because this is the only option we have," he said in response to a question. "And this is why I tell people vote yes on Proposition 76 and make sure that we do everything that we can to pass this proposition so that we force our legislators once and for all to live within their means and not to continue spending money and to keep making promises to people that they can't keep."

Critics of Proposition 76 argue the proposal would give the governor too much authority over spending choices.

Bob Mulholland, spokesman for the California Democratic Party, said he did not believe Schwarzenegger would follow through with the threat, largely because it would alienate his own Republican base.

2005-09-04