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Budget Deal In Sight

Legislative leaders say they finally have a deal on a California state budget that's two-and-a-half months overdue. Democrats say they'll put the spending plan up for a vote today. But, the Governor h

Budget Deal In Sight

Legislative leaders say they finally have a deal on a California state budget that's two-and-a-half months overdue. Democrats say they'll put the spending plan up for a vote today. But, the Governor has expressed concerns. Jenny O'Mara reports.

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Legislative leaders emerged from a meeting at the state Capitol yesterday -- but didn't get into specifics about the deal they've reached. Senate President Pro-Tem Don Perata says it does not include tax increases- which Republicans said they wouldn't support.

Perata:   "We decided that the best thing that we could accomplish in the time that we've let go by was a budget that at least did not borrow and one that did not require any more cuts…"

Lawmakers say it does include things the Governor had wanted-so called budget reforms that include beefing up the rainy day fund. It also gives the Governor some authority to make mid-year spending cuts. Assembly Republican leader Mike Villines says he's taking the plan to his GOP colleagues.

Villines:   "I'm optimistic we've got to a spot that we can end this and move forward into next year where we have some very difficult decisions already."

The plan has nine-billion dollars in spending cuts. And to bring in money lawmakers say they'll collect tax revenue in a way so it will count this year instead of next year.

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In a statement a spokesman for Governor Schwarzenegger said they are analyzing the proposal but have concerns that the budget reform may not be strong enough.

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