Brokered Budget Deal Heads to Arnold's Desk

The California Senate and Assembly approved a long-awaited budget package intended to wipe out a $42 billion deficit, possibly steering the state clear of a fiscal disaster.

One vote was all that was needed to pass the plan, but Republicans, opposed to raising taxes to fill the budget gap, hadn't budged until now.

Legislative leaders agreed in an early-morning deal to make major election and government reforms in exchange for a vote from moderate Republican Abel Maldonado.

The budget proposal is a combination of spending cuts, tax increases and borrowing. The failure to pass a plan put tens of thousands of jobs in jeopardy. Without a budget, funding for hundreds of public works projects would  have been cut off Thursday, putting some 92,000 construction workers out of work.

Lawmakers spent the last day courting Maldonado. To win his vote they agreed to ask voters to revise the state's constitution to allow open primaries for legislative, congressional and gubernatorial elections.  Also, they removed a provision to increase the gas tax by 12 cents a gallon and agreed to freeze legislators' salaries in deficit budget years.  They deal also eliminates new office furniture budgeted for the state controller.

The budget was rapidly approved by the state Assembly, which was on standby in the event of the Senate's passage of the budget. It now head to the governor's desk for final approval.

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