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State Budget Deal Appears To Be Reached

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Sacramento, Ca — It appears that an agreement has been reached between the Governor and the Legislature on a new spending plan, which will potentially end a record breaking budget impasse.

The Assembly and Senate are scheduled to vote on a new budget proposal Friday afternoon. According to a statement from Senate Democratic Leader Don Perata, the plan eliminates a proposal to increase the amount of withholding tax paid on personal income taxes. It will be replaced with a plan to increase penalties on corporations that underpay taxes.

The agreement was reached in a closed session meeting this afternoon among the Big Five.

Written by BJ Hansen

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