California Gov. Arnold Schwarzenegger (R) on Wednesday said he will veto a health care bill by Democratic lawmakers if it relies solely on employer contributions for funding, the Sacramento Bee reports. The Democrats' bill would require employers to spend at least 7.5% of payroll on employee benefits (Yamamura, Sacramento Bee, 8/23).

Schwarzenegger said that the final health care plan "needs to have mandatory health care coverage, and it needs to have shared responsibility." The governor's plan to expand coverage to all residents would be funded through mandatory contributions from employers, hospitals and physicians, as well as increased federal funds (Rau, Los Angeles Times, 8/23). Schwarzenegger said that he would consider pursuing a ballot measure to overhaul the state health care system if negotiations in the state Legislature fail.

Schwarzenegger at a rally in Sacramento, Calif., on Wednesday told about 1,000 AARP members that he "can guarantee" a compromise on health care reform will occur this year (Herdt, Ventura County Star, 8/23).

Steven Maviglio, spokesperson state Assembly Speaker Fabian Núñez (D), said, "When [Schwarzenegger] decides to roll up his sleeves and engage with the speaker and [Senate President Pro Tempore Don Perata (D)], we are confident we can resolve the minor differences we have and complete comprehensive health care reform" (Kurtzman, AP/San Jose Mercury News, 8/23).

However, Perata said, "We should have been working on this every day this month," but lawmakers were "tied up with the budget stalemate." He added, "When we try to do things fast around here, we usually make mistakes that we regret" (Chorneau, San Francisco Chronicle, 8/23). Perata also suggested that Schwarzenegger might have to call a special session after the legislative session ends Sept. 14 to finish negotiating a health care bill (Ventura County Star, 8/23).