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Bid To Renew Calif. Tax Hikes Fails Senate

SACRAMENTO, Calif. (AP) -- The state Senate has rejected extending recent tax hikes for another year to help close California's $9.6 billion budget deficit but approved a bill that would allow local communities to more easily go to the voters for tax increases.

The Senate voted 22-15 along party lines Friday for the so-called "bridge tax," which would have continued for one year increases in the sales and vehicle taxes enacted in 2009. The measure fell five votes short of the two-thirds majority needed.

The higher tax rates will expire June 30 unless they are renewed.

Democrats want a one-year renewal to give school districts certainty over their funding. Gov. Jerry Brown wants lawmakers to call a special election in September so voters can decide whether to extend the tax hikes for five years.

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