This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/world/americas/8160315.stm
The article has changed 5 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| California budget plan 'agreed' | California budget plan 'agreed' |
| (30 minutes later) | |
| Governor Arnold Schwarzenegger and leading California legislators say they have agreed a plan to close a state deficit of more than $26bn (£17bn). | Governor Arnold Schwarzenegger and leading California legislators say they have agreed a plan to close a state deficit of more than $26bn (£17bn). |
| Mr Schwarzenegger said the plan would include $15bn of spending cuts and no significant tax increases. | Mr Schwarzenegger said the plan would include $15bn of spending cuts and no significant tax increases. |
| Legislators said they are hoping to vote on the plan on Thursday. | Legislators said they are hoping to vote on the plan on Thursday. |
| Mr Schwarzenegger declared a fiscal emergency earlier this month after legislators missed a deadline to agree a budget for the coming financial year. | Mr Schwarzenegger declared a fiscal emergency earlier this month after legislators missed a deadline to agree a budget for the coming financial year. |
| Amid a protracted fiscal crisis, the office of the state controller has been sending promissory notes, or IOUs, to thousands of contractors and vendors providing state services. | |
| Monday's deal came after more than two weeks of intense negotiations. | Monday's deal came after more than two weeks of intense negotiations. |
| "We are very happy to have a basic agreement," Mr Schwarzenegger said as he announced the plan. | "We are very happy to have a basic agreement," Mr Schwarzenegger said as he announced the plan. |
| California's lawmakers approved a budget package in February that was aimed at plugging the state's deficit until the summer of 2010. | |
| But the recession has sharply reduced state revenues, making further measures necessary. | |
| Along with the spending cuts, the plan proposes to raise money by borrowing from local government, moving funds from other government accounts, and accelerating the collection of some taxes. | |
| California's assembly speaker, Democrat Karen Bass, said the plan protected basic social services that her party had sought to preserve. |