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Governor Still Critical Of License Fee Increase

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Assembly Democrats have set the stage for a possible clash with Governor Davis by tying enactment of nearly $8.6 billion in budget cuts and funding shifts to a $4 billion increase in vehicle license fees.

Democratic lawmakers say linking the fate of the fee increase with the budget cuts would ensure a balanced approach in beginning to deal with a state budget deficit that the administration pegs at $34.6 billion. The legislative analyst says it totals $26.1 billion. But the Democratic governor has criticized the VLF increase, stopping just short of saying he would veto the measure if it reaches his desk. Instead, he´s supporting $8.3 billion in income, sales and tobacco tax increases.