Voters rejected all five other measures, including Proposition 1A, the centerpiece of efforts by Gov. Arnold Schwarzenegger and other state leaders to fix California's ongoing fiscal problems. It would have created a state spending cap while prolonging temporary tax increases and also strengthened the state's rainy day fund.
"Tonight we have heard from the voters and I respect the will of the people who are frustrated with the dysfunction in our budget system," Schwarzenegger said in a statement late Tuesday. "Now we must move forward from this point to begin to address our fiscal crisis with constructive solutions."
The failure of the measures means California's budget deficit will grow by nearly $6 billion above the current $15.4 billion deficit, forcing Schwarzenegger to make further cuts to state programs already facing major rollbacks.
"Obviously, it's disappointing," said Democratic Assemblywoman Noreen Evans, chairwoman of the Assembly Budget Committee. "But I think the voters are sending a message that they believe the budget is the job of the governor and Legislature. We probably need to go back and do our job."
Other measures voters rejected would have transferred $460 million over the next two years from mental health programs to help close the state deficit; redirected $1.7 billion from children's programs; allowed $5 billion in borrowing from lottery revenue; and restored more than $9 billion to schools.
The special election ballot also included races for a congressional seat and a state Senate seat, both in Southern California. East of downtown Los Angeles, voters were deciding who would fill the seat vacated by U.S. Labor Secretary Hilda Solis. Former state Assemblywoman Judy Chu was leading fellow Democrat Gil Cedillo with 42 percent of the vote late Tuesday; a candidate had to top 50 percent to win.
The governor missed Election Day in California but cast a mail-in ballot before leaving for the nation's capital, where he joined a White House announcement on new vehicle fuel-efficiency standards.
The Republican governor spent part of the day talking to members of California's congressional delegation, bracing them for the prospect of additional spending cuts if the propositions failed.
Laying off thousands of state employees, reducing the school year by seven days and cutting health care services for tens of thousands of low-income children are among the options. California will need a waiver from the federal government allowing it to make some of those cuts without jeopardizing money from the stimulus package.
Despite the doomsday predictions, California voters largely tuned out. Only 14 percent, or about 2.4 million, of Californians who vote by mail had cast their ballots before election day, according to tallies reported by the California Association of Clerks and Election Officials.
"This is a statewide election in May. We've never had one before," said Joe Holland, Santa Barbara County registrar of voters. "I think in general people were not interested in voting in this election. It didn't generate a lot of excitement."
Sentiment at polling stations throughout the state was a mix of anger toward politicians and resignation that the state would continue to face financial turmoil no matter the outcome of Tuesday's vote.
Yvonne Frazier decided to vote for every proposition except one that would transfer money from a fund dedicated to helping the mentally ill. The grant writer from San Francisco saw it as the only way to balance the state's budget.
"I wasn't real happy about it, but what are going to do?" she said. "It's a vote out of desperation."
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Associated Press Writers Kevin Freking in Washington, D.C., Don Thompson in Sacramento, Paul Elias in San Francisco, and Shaya Tayefe Mohajer and Jacob Adelman In Los Angeles contributed to this report.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
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