The governor and state legislative leaders have reached an agreement on a budget deal. That will avoid Schwarzenegger's threatened veto.
Governor Schwarzenegger and legislative leaders met twice Thursday to work out an agreement that will end the state's nearly three-month long budget stalemate.
Lawmakers approved a budget plan earlier in the week, but Schwarzenegger threatened to veto it.
Senate President Pro-Tem Don Perata says the governor was firm about what changes he required.
Perata: "His vote is bigger than 120-votes. And he laid down what he wanted, he said he was not going to relent. …"
The agreement makes changes to the "rainy day fund." It makes rules about when the money can be taken.
