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Assembly Approved A Compromise Budget Tuesday

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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 on a 56 to 22 vote. That 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.

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