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United States

Sacramento

Budget bailout fails: California voters have overwhelmingly rejected a package of ballot initiatives aimed at plugging the state’s massive budget deficit, leaving it near bankruptcy. The measures would have capped spending, extended tax increases, and authorized the state to borrow against lottery revenues. About 10 percent of registered voters went to the polls, and they nixed all but one measure, which bars pay increases for legislators and the governor. “I respect the will of the people who are frustrated with the dysfunction in our budget system,” said Gov. Arnold Schwarzenegger, who called on both parties to forge a plan to close the state’s $21.3 billion budget deficit.

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