SAN FRANCISCO, Nov 6 (Reuters) - California Gov. Arnold Schwarzenegger said on Thursday that lawmakers should approve a severance tax on oil production in the state to raise revenue to help close a state budget shortfall that has swollen to $11.2 billion.
"We have drastic problems that require drastic and immediate action -- we must stop the bleeding right now," the Republican governor said in a statement a day after two top lawmakers in the state's Democrat-led legislature also called for an oil severance tax.
Schwarzenegger has previously allied with Democratic lawmakers on a number of environmental initiatives, including a landmark law requiring cuts to greenhouse gas emissions, but has resisted calls from Democrats to increase taxes in general.
California voters tend to rank environmental matters as a top priority but on Tuesday they rejected two ballot measures focused on alternative energy.
Additionally, two years ago they rejected a statewide measure proposing a tax on oil producers extracting oil in the state to fund incentives for researching and producing alternative energy and alternative fuel vehicles.
Schwarzenegger opposed the measure, Proposition 87, which had the backing of former President Bill Clinton, former vice-president Al Gore and Hollywood celebrities.
(Reporting by Jim Christie; Editing by Diane Craft) Keywords: Keywords: ECONOMY CALIFORNIA/OILTAX
(jim.christie@thomsonreuters.com; +1-415-677-2539; Reuters Messaging: jim.christie.reuters.com@reuters.net)
COPYRIGHT
Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
