California Legislature Closes In on Budget Deficit: Wilson Threatens ...
SACRAMENTO, Calif., July 3ÛÓ Under prodding from Gov. Pete Wilson (R), a legislative conference committee tonight approved a new tax package that would take the final steps in closing a $14.3 billion budget deficit, largest in the history of any state.</br></br>The Senate approved the package late tonight, but the bill's fate in the Assembly remained uncertain.</br></br>With a midnight deadline approaching, Wilson called legislative leaders into a closed-door session to work on a deal intended to solve</br></br>California's fiscal crisis. Wilson warned the leaders that he would veto a $56.4 billion budget approved last week after protracted controversy unless the Legislature raised the taxes to pay for it, as the state Constitution requires.</br></br>Wilson told reporters after the meeting that the only obstacle remaining to resolution of the fiscal crisis was passage of a measure demanded by business interests that would make it more difficult for workers to obtain workersÛª compensation for loss of income due to stress.