Governor says he will veto budget bill

In yesterday's post I said that the governor and lawmakers reached a budget deal - apparently I was only half right. While the legislative leaders struck a deal, the governor is not on board. The Los Angeles Times' Jordan Rau and Evan Halper reported this afternoon that the governor is planning to veto the proposal that lawmakers passed around 2 a.m. this morning.

Excerpt:

Gov. Arnold Schwarzenegger announced this afternoon that he will veto the state budget passed by the Legislature early this morning, setting the stage for an unprecedented confrontation in California's Capitol.

"When they send me the budget, I will veto it," Schwarzenegger said at a Capitol news conference. "If my veto is overriden," he said, " ... hundreds of bills will be vetoed."

Schwarzenegger had warned lawmakers in a letter last night that he would veto their spending plan -- 78 days late today -- if it did not include three provisions to ensure the state a reliable rainy day fund for times of fiscal trouble. This year, California has developed a $15.2-billion budget gap.

The Legislature agreed to two of his three requests.

A budget veto would be a first for California, but legislative leaders in both parties said early this morning that it is likely the Legislature would override it.