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Anthony Wright
Budget accord reached

Gov. Arnold Schwarzenegger and legislative leaders announced Monday that they had reached a deal to close California's $26.3-billion deficit and begin paying all of the state's bills again, potentially ending months of partisan wrangling and a cash crisis that threatens to push California into insolvency. Their agreement, which could go before the full Legislature within days, does not include any broad-based tax increases, relying instead on deep cuts in government services, borrowing and accounting maneuvers to wipe out the deficit. The plan has not been formally released. But as outlined by lawmakers and their staffs, the proposal would reshape some aspects of government in...

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