The state budget deadlock over an initial package of spending cuts and an increase in vehicle license fees appears to have been broken.
Earlier today the Assembly approved a package of about $8.6 billion in spending cuts that are not tied to legislation designed to trigger a VLF increase. The action came more than three months after Governor Davis called a special legislative session to attack a budget deficit that could reach $34.6 billion over the next 16 months.
The bills approved today are nearly identical to a package of midyear cuts and funding shifts that lawmakers approved several weeks ago. But those cuts were tied to enactment of a bill by Assembly Speaker Herb Wesson that was designed to trigger an increase in the VLF to help ease the state´s revenue problems. Davis announced that he would veto the Wesson bill, and the speaker never sent the earlier package of cuts to the Democratic governor.