Lawmakers in California have finally approved the state's annual budget, three months after the start of the financial year.
California faces a deficit of $US19.1 billion, but the BBC reports the new budget provides spending reductions worth only $US7.5 billion.
A budget agreement was was announced on Wednesday after a stalemate lasting 90 days between Democrats and Governor Arnold Schwarzenegger.
Both chambers of the Legislature have endorsed the budget. The state's financial year began on 1 July.
California has a history of late budgets. The state is the biggest issuer of municipal bonds in the United States.