Prop Zero
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State Leaders Make Budget Breakthrough

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    NEWSLETTERS

    California took a big step toward resolving its budget crisis Thursday afternoon. Spokespersons for Gov. Arnold Schwarzenegger said in an e-mail, "the Governor and Legislative leaders have reached the framework of an agreement, will work through the details over the weekend, and hope to come to a final agreement when they reconvene Monday (September 27).

    Now, a lot could happen between now and then, but this can only be seen as the first positive news about the state budget since lawmakers blew through the deadline for a deal 85 days ago.

    What no one is saying yet is who agreed to what.    Republicans have refused to budge on the issue of tax hikes, while Democrats have fought against additional cuts.

    Legislative leaders reached the deal at the Governor's offices in L.A.  They were meeting there because Mr. Schwarzenegger has been battling a cold.

    It might not be as therapeutic as chicken noodle soup, but a budget deal has to make Ahnold feel better.