[AUDIO: Ben Adler gives a summary of budget activity at the Capitol]
Republican Tony Strickland said the taxes would put more Californians out of work.
Strickland: "It's a tax increase that people don't want. They've already voted it down once. They'll vote it down again. And it's wrong for California to move forward and hopefully put people back to work."
But Democrat Noreen Evans called it "fiscal prudence" to give school districts some much-needed budget certainty.
Evans: "To do otherwise means we open up a huge gap in this fiscal year's budget and create economic chaos around the state."
When that "bridge tax" measure failed, Senate Leader Darrell Steinberg forced through his controversial backup plan - a bill that would expand the taxing authority of local governments. That bill is strongly opposed by Republicans and the business community.
The Senate will meet again Saturday. The Assembly will start its debate on Monday.