Gov. Jerry Brown and Democratic leaders say they have reached an agreement to finalize California's budget.
A vote of the Legislature will take place next week.
Brown and legislative leaders announced Thursday that the plan protects education, permanently reforms welfare and includes tough ongoing cuts. He says the plan "positions the state to withstand the economic challenges and uncertainties ahead."
Although Democrats passed the main budget bill on a majority vote last week, the governor pressed for deeper cuts to welfare and other social services amid a projected $15.7 billion shortfall.
The Legislature passed a $92 billion budget Friday but several companion bills must still pass before the state's spending plan can take effect.
The whole package hinges on voters approving an initiative in November to raise taxes.