California governor halts budget talks with Republicans

Reuters News
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Posted: Mar 29, 2011 7:35 PM

SACRAMENTO, California (Reuters) - California Governor Jerry Brown said in a statement on Tuesday he has halted talks with Republican lawmakers over the key part of his state budget plan, a tax measure to raise revenue to help fill a nearly $27 billion deficit.

The Democratic governor has been trying to convince Republicans in the legislature's minority to support legislation to put a tax measure on the June ballot.

For their part, Republicans have urged Brown to support a spending cap and changes to the state's pension system and regulations as a way to reach a possible compromise on a tax measure.

(Reporting by Marianne Russ in Sacramento; additional reporting by Jim Christie in San Francisco; Editing by Gary Hill)