California Considers License Fee Hike

SACRAMENTO, Calif. -- The California State Assembly passed a bill last week that would nearly triple the vehicle license fees in California, despite Governor Gray Davis' criticism of the plan.

The Assembly also approved a bill making $8.6 billion in midyear budget cuts backed by the governor. However, the Assembly made the cuts contingent upon the governor's approval of a measure that could trigger the license fee hike.

In response, Governor Davis argued that the Assembly's decision to attach conditions to the midyear cuts may ultimately jeopardize the state's credit rating.

The Senate is expected to consider the fee hike today.

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