10 Oct 2010

California state budget finally approved

1:01 pm on 10 October 2010

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.