The 2008-09 California state budget was not enacted at the start of the fiscal year: July 1. After a record delay of two and a half months, the legislature enacted a budget which Governor Arnold Schwarzenegger announced he would veto. Budgets and tax increases in California require a 2/3 vote. To override the veto, a 2/3 vote is also needed. During the budget crisis, Gov. Schwarzenegger called for long term fiscal reform which would include an enhanced rainy day fund. However, since the state had no surplus, a rainy day fund would not resolve the immediate 2008-09 crisis. Earlier in the budget negotiations, Gov. Schwarzenegger seemed to want enhanced power to cut the budget, a power that would address the short term problem. However, this demand was not mentioned when the intent to veto was announced. Part 1 is the opening statement by the governor on the veto. Part 2 is the question and answer session with reporters. Note that although the governor says in his message that he expects his veto to be overridden, in fact, a face-saving compromise was reached with the legislature shortly thereafter.
