The Associated Press
Created: 03/24/2011 06:09:59 PM PDT

SACRAMENTO – Gov. Jerry Brown said Thursday that he has told his labor union allies they should be open to concessions that Republican lawmakers are seeking on public employee pensions in exchange for GOP votes on the budget.

The Democratic governor has warned that if Republicans fail now, conservatives could try for even bigger giveaways with a future ballot initiative.

A group of GOP lawmakers wants pension reforms, looser business regulations and a state spending cap in exchange for their votes to call a special election. Brown wants to ask Californians to extend temporary increases enacted two years ago on the personal income, sales and vehicles taxes for another five years. The tax hikes are scheduled to expire this year.

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