(07-29) 16:05 PDT SACRAMENTO (AP) --
The state Assembly approved a compromise budget Tuesday that alleviates a record deficit by slashing spending, raising fees and relying on borrowing that could leave the state facing a financial crisis next summer.
The deal approved in the house's longest session in history avoids raising sales and income taxes, but counts on a $4 billion annual car tax increase that state officials triggered earlier this year and the elimination of a tax break for manufacturers.
After more than 27 hours of negotiations, the budget bill passed 56-22 after $300 million was added in spending to benefit local governments, law enforcement, schools and farmers.
The vote was enough to give the near-$100 billion proposal the two-thirds majority required to pass it. It now goes to Gov. Gray Davis, who has indicated he will sign it.
http://www.sfgate.com/cgi-bin/article.cgi?f=/news/archive/2003/07/29/state1825EDT0151.DTL(This is good news from a political standpoint, and will go a long way to deflating the media-hyped pro-recall forces.)