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The ratings agency Standard & Poor's warned on Tuesday that it could downgrade California's financial outlook if lawmakers don't pass a credible budget plan this year.
The longest-ever state budget impasse moved toward a close as the lower house approved a spending blueprint after working through the night, but not before stuffing it with last-minute favors for special interests.
A top California lawmaker said on Friday the state's leaders had reached a final agreement on closing a $19.1 billion deficit to balance the state budget, ending a record stalemate over a spending plan.
Gov. Arnold Schwarzenegger is bringing back furloughs for thousands of state workers until California passes a budget.
Senh: I don't think Jerry Brown would have a problem balancing the budget. When he was governor of California, we had a huge surplus. Let's see if he can work his magic again if he gets elected.