Governor Signs Budget

Governor Schwarzenegger signed a $105 billion budget plan Saturday that raises no new taxes while protecting core services.

The budget came after a difficult 26 day stand-off with the Legislature's Democratic majority.

Although balanced, the plan includes more than $7 billion in loans and one-time savings. Critics say the budget does not do enough to fix the state's spending imbalance.

Schwarzenegger contends it is a good first step.

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