Governor, localities mull deal

[Kadie]

Governor, localities mull deal
By Alexa H. Bluth -- Bee Capitol Bureau

Published 2:15 am PDT Thursday, April 22, 2004

Gov. Arnold Schwarzenegger is on the verge of persuading local governments to accept deep budget cuts for two years in exchange for his support of a constitutional amendment that would restrict the state from raiding city and county coffers in future years, sources close to the talks said Wednesday.

The deal, being shaped by Department of Finance and local government officials, would provide the reassurance local groups have sought for years that the state will not raid their treasuries to help fill its own.

It also would capitalize on a strategy that has proven hugely successful for the first-year Republican governor: hammering out deals with key players in private, and using the promise of his tremendous sway with voters to seal the deal.

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http://www.sacbee.com/content/politics/ca/story/9003918p-9929893c.html