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Governor Warns Of Tax Increase If Voters Turn Down Spending

Sacramento, CA — Governor Schwarzenegger has warned voters he might be forced to raise taxes if his spending control plan, Proposition 76, is turned down in November´s special election.

The measure is considered the cornerstone of the governor´s ballot agenda. It would limit how fast state spending could grow and it would give the governor new power to cut spending without legislative approval.

A recent poll showed that the proposal was favored by just 28 percent of likely voters with 61 percent opposed. Schwarzenegger, who has until now been steadfast against new taxes, told a radio audience in Sacramento Friday that if the spending cap is not approved he might have no other choice but to propose a tax increase.