LOS ANGELES (AP) — California voters have rejected a ballot
measure that would have created a state spending cap while prolonging
temporary tax increases.
Proposition 1A was the centerpiece of
efforts by Gov. Arnold Schwarzenegger and other state leaders to fix
California’s ongoing fiscal problems. It also would have strengthened
the state’s rainy day fund.
The measure’s defeat means
Proposition 1B, which would have restored more than $9 billion to
schools, cannot be enacted even if voters approve it. That measure also
was trailing in early returns Tuesday.
Proposition 1A generated
the most opposition among the six measures on Tuesday’s ballot. State
employee unions opposed the spending cap, while anti-tax groups
criticized the $16 billion in tax increases it would have triggered.