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The Republican governor had said improving the state's water storage and delivery system was one of his top priorities.
On Tuesday, he said the timing was poor and wants to delay the measure until 2012.
He says putting the measure on the ballot this year, when the state faces a $19 billion budget deficit and record unemployment, would jeopardize its passage.
He says the focus in the Capitol should be on fixing the deficit, reforming government pensions and creating long-term budget reforms. The Legislature would need to agree for the measure to come off the ballot.
