SAN FRANCISCO (KCBS) -- The state budget crisis does not play into the hands of rival states trying to lure new business away from California, Governor Arnold Schwarzenegger said Friday.
The governor was at his San Francisco office keeping a firm stance on his negotiations with the legislature, saying he would not raise taxes to close a swelling $26.3 billion deficit.
“Get rid of the fraud waste and abuse,” Schwarzenegger said, reiterating his belief the budget crisis can only be solved by draconian cuts. The governor said he would not sign any legislation to balance the budget that did not change how the state spends money.
“Taxpayers hate to pay taxes and know that one-third of the money is being wasted for things that we don’t need,” he said.
KCBS' George Harris reports
The deadlock forced the state to start issuing IOUs to taxpayers and vendors on Thursday, a move Gov. Schwarzenegger does not see as a threat to companies trying to do business in the state.
“Sometimes people criticize and say we are the worst state to do business in, which is not true,” he said. “We are sixteenth in the nation when it comes to economic activities.”
Nevada regularly receives inquiries about relocating from California businesses, said Julie Ardito with the Economic Development Authority of Western Nevada.
“We are receving calls from California companies that are frustrated and fed up with the business plan and situation,” she said. “Honestly this is nothing new.”
Schwarzenegger admitted California's tax codes needs some business friendly reforms. But even so, he said, California’s diversity has far more to offer than neighboring states.
Meanwhile, the state is sending out IOUs instead of student aid to thousands of Californians who depend on that money to go to college.
(jro)
Print Story
DW.pageParams = {
siteId: '255'
};
DW.clear();
DW.trackClicks();
