California lawmakers have finally come to an agreement on the new state budget, ending a stalemate in which Republicans refused to add new taxes and Democrats fought against cutting funding for education and health care. The compromise sees the state using next year's money to pay off its current debts, writes the Los Angeles Times.
Gov. Arnold Schwarzenegger might still demand changes, but any veto from his office could be overridden by the same two-thirds vote needed to pass the bill. The plan requires taxpayers and businesses to pay more of their taxes earlier, and will avoid the need to cut state employees' salaries to minimum wage, as Schwarzenegger had been trying to force the state controller to do.
(More California stories.)