Legislature approves new compromise budget

The state Legislature has approved a compromise state budget for the second time this week, hopefully ending for good the longest stalemate in state history.

Gov. Arnold Schwarzenegger says he’ll sign the $143 billion spending plan next week.

Once that happens, California can resume payments to schools, medical clinics, day care centers and state vendors that haven’t been paid since July 1, the start of the fiscal year.

Legislators had to bridge a $15.2 billion budget deficit.

Schwarzenegger said earlier that he was pleased the legislative leaders agreed to stronger controls on the state’s rainy day fund and gave him the authority to make spending cuts during the year.

But he’s disappointed they couldn’t agree on reforms that would prevent the state from spending more than it takes in.

Schwarzenegger threatened to veto a previous budget lawmakers approved earlier this week.

 

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