SACRAMENTO, Calif. -- Gov. Arnold Schwarzenegger said Thursday he will veto an $18 billion package of budget cuts and tax increases Democratic lawmakers pushed through the state Legislature.
Schwarzenegger says it doesn't do enough to revive California's spiraling economy and close a projected $42 billion budget shortfall over the next 18 months.
He says he wanted an economic stimulus package that includes partnerships with the private sector and help to keep struggling Californians in their homes.
Schwarzenegger also says Democrats watered down the spending cuts and increased the taxes from the package he was negotiating with them.
The plan they approved Thursday made more than $7 billion in cuts to education, health care and prisons, and added about $11 billion in tax increases and fees.
Schwarzenegger says he warned Democratic leaders he wouldn't sign a watered down package.