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Attempt to Ease School Contracting Rule Killed

From Times Staff and Wire Reports

In a defeat for Gov. Arnold Schwarzenegger, Democratic lawmakers killed legislation that would have made it easier for school districts to hire private companies for busing and other services.

Schwarzenegger was seeking to repeal a 2002 law that had prohibited schools from using outside companies unless no jobs were lost and administrators could prove a cost savings.

The Assembly Public Employees Committee rejected legislation to repeal the law by a 6-3 vote. Schwarzenegger said special interests killed it.

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