The final budget approved by the California Legislature does not include proposed big increases in cigarette
taxes and motor vehicle license fees. Minority Republicans in the state Assembly held fast during the past two months in opposing tax increases. It took four Republican votes to reach the two-thirds majority required for Assembly passage. One Republican joined Democrats controlling the state Senate. While Republicans declared a victory for fiscal conservatism, Democrats hailed the preservation of funding for education and prisons. But the minimum amount of money the state must spend on schools was cut by about 700 million dollars.