The state Assembly approved a 105 billion dollar budget agreement Wednesday night.
The vote came after 26 days of political dealmaking to end the state´s budget standoff.
While the plan had the backing of party leaders and Governor Schwarzenegger, its passage was not assured given California´s requirement that the budget receive two-thirds majority approval.
Schwarzenegger and party leaders agreed late Monday on the spending.
Administration officials say the new budget closes a deficit estimated in January at 17 billion dollars, without raising taxes.
The budget bill now goes to the Senate, which is expected to approve it Thursday.
If so, Schwarzenegger is scheduled to sign it Saturday.