At the national conference of governor´s today, California Governor Gray Davis says state leaders have reached agreement on a number of issues.
Governors have agreed that the states need more federal assistance for homeland security, health care, and incarceration of illegal aliens that commit crimes once they get here.
At the conference, President Bush promised governors that his budget proposal includes $400 billion in grants for states. That´s a 9% increase.
Governor Davis´ administration projects a nearly $35 billion deficit for California. Governors across the nation are projecting an $85 billion gap between spending demands and revenue.