SACRAMENTO, Calif. — Gov. Arnold Schwarzenegger and California's legislative leaders apparently have agreed Monday on a plan to close the state's $26 billion budget shortfall.
The governor and legislators announced the compromise after more hours of closed-door talks on Monday.
Most analysts expect that California will face multibillion dollar deficits into the foreseeable future as the economy struggles to recover from the current crisis and tax revenue lags far behind.
Republicans incessantly demanded more school budget cuts and more cuts of social services.
Cuts made in higher education will hurt the economy for decades.