Schwarzenegger threatens not to sign budget

LOS ANGELES Speaking in Los Angeles, Schwarzenegger told reporters wants certain reforms concerning tax, pension and spending and added that if he doesn't get them, the budget will not get his signature.

California faces a $19 billion deficit and a budget deadline came and went about four weeks ago.

Democrats want a new oil tax and are trying to hold off on corporate tax breaks. But Schwarzenegger and Republican legislators oppose any new taxes.

The state controller's office says that California will have enough money to keep operating through August. But after that, the state will likely be forced to issue IOUs.

The Associated Press contributed to this report.

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