Authoritative Source

"AN UNGLY WIN FOR SCHWARZNEGGER"

The outline of the final $41 billion package, a combination of steep spending cuts, tax hikes, borrowing and provisions meant to boost the state's business climate, was nearly identical to the framework Schwarzenegger laid out late last year.

And as a bonus, the package authorized two ballot measures sought by Schwarzenegger: one to cap future state spending and another to create a so-called open primary system that the governor believes would help elect more moderates like himself.

Also almost overlooked amid the budget theatrics was Schwarzenegger's about-face on taxes, an issue he rode into office twice since 2003. His first act as governor was to slash the vehicle license fee that motorists pay to register their cars — a move that was responsible for a big chunk of the state's recent budget shortfalls. The agreement forged last week nearly doubles that license fee, though it will remain lower than it was before Schwarzenegger took office.

Schwarzenegger's supporters counter that cajoling enough Republicans to vote for a budget with billions of dollars in tax increases would have been a steep task for any governor. The bare minimum number of Republicans to reach the required two-thirds threshold for taxes — three in the Senate and three in the Assembly — ultimately signed on.