The Governor wants to close the $16 billion budget gap with cuts to health and welfare programs and state worker compensation.
It also depends on revenues from a proposed tax initiative in November.
Democratic State Senator Mark Leno says there is no other way to get California out of its budget hole.
Leno: "Every Californian needs to see that we need some revenue because otherwise everything is going to continually be at risk."
But Senate Republican Leader Bob Huff says Californians can't afford more taxes.
Huff: "We have also grown government 10 percent, $20 billion in the overall budget since we entered the recession of 2007-2008, that's lost in this dialogue that somehow we think the only way we can balance this is to raise taxes"