Handshake Deal on State Budget
Governor Schwarzenegger and legislative leaders have a “handshake deal” on a 116 billion dollar state budget.
Tuesday, July 5, 2005
After a three hour BIG FIVE meeting with legislative leaders, Schwarzenegger told reporters that agreement had been reached.
"It is a budget that is balanced. It pays down some of our debt. It doesn’t borrow any new money. And it does not raise taxes."
The Republican governor said it adds three billion more dollars for education and almost a billion and a half additional for transportation projects.
Democratic Assembly Speaker Fabian Nunez says the budget compromise could lead to an agreement to curb the state’s long-term structural deficit. "Obviously this is a verbal agreement. We still have to vote on it. But today’s actions are a reflection that we’re back on track. That we’re gonna start workin’ together in the spirit of cooperation."
Both houses of the legislature will vote on the budget Thursday.
The budget gives the state legal authority to spend money during the fiscal year that began last Friday.