Schwarzenegger issues warning on taxes

SACRAMENTO (AP) -- With his Proposition 76 spending control plan trailing badly in the polls, Gov. Arnold Schwarzenegger is warning voters he might be forced to reverse his stance and raise taxes if the measure fails in the Nov. 8 special election.
The measure, considered the cornerstone of the governor's ballot agenda, would impose spending caps on everything from education to health care and criminal justice. It also would give the governor new power to make cuts.