Arnie budget rescue plan rejected



Governor Arnold Schwarzenegger has failed to push a financial rescue plan through the California legislature. The lawmakers' refusal to pass his budget raises the possibility that California's coffers will run dry in June, when $14bn in loans come due.

The actor-turned-politician has pledged to restore the hugely indebted state to financial health without raising taxes. He had been campaigning for a rescue package involving spending cuts and borrowing $15bn to cover the deficit.

Democrats who dominate the state assembly criticised the plan, but their own counter-proposal was fiercely opposed by Republicans. Midnight on Friday (0800GMT on Saturday) was the deadline to reach a deal to put the plan before voters in a ballot in March.

Mr Schwarzenegger spent Friday meeting legislators to try to muster support for his plan, but it was soundly defeated when it came to a vote.
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So how is he getting along? This is all I have heard lately.