Gov. Jerry Brown and Democratic legislative leaders have reached an agreement on a state budget that expands funding for subsidized child care and eliminates a controversial welfare policy that restricted cash assistance for more than 100,000 children.
Brown spokesman Evan Westrup says the agreement was reached on Thursday.
A key legislative budget panel quickly scheduled an evening meeting to approve it, setting up votes in the full Assembly and Senate next week.
The agreement includes $400 million for housing construction to help people with low income. But it's contingent on lawmakers approving a controversial proposal by Brown to speed up development in some neighborhoods.
Legislative leaders agreed to Brown's demand to save $2 billion more than required, boosting the state's reserve fund in case of a recession.
