Schwarzenegger: No budget without tougher reforms

September 15, 2008 12:00:00 AM PDT
Gov. Arnold Schwarzenegger says he will not sign the compromise budget proposal California lawmakers were considering Monday unless they include his requests for a stronger savings account. In a letter to the four legislative leaders, the governor says he wants more money set aside in a rainy day fund and tighter controls on when that money could be spent.

The letter was obtained by The Associated Press as the state Assembly was meeting to consider a proposal to end the state's record-long budget impasse.

The governor has been stumping statewide for long-term fiscal reform and had said he will not sign a budget that fails to include it.

He wants 3 percent of general fund revenue to be automatically deposited into the rainy day account each year, stopping only when the account reaches 12.5 percent of the general fund.

Schwarzenegger also wants assurances that the fund could be tapped only when revenue falls below projected spending.
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