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Legislature Approves New State Budget

Sacramento, CA — State lawmakers approved a $131 billion spending plan Tuesday evening that uses a tax windfall to fund one of the largest increases ever for California schools.

The budget also sets aside billions to pay down debt and increase reserves.

The bill passed the Senate 30-to-10 after five Republicans joined Democrats in supporting the spending plan. The Assembly followed by voting 54-to-23 in favor of the bill.

This clears the way for Governor Schwarzenegger to sign the bill before a midnight Friday deadline and give California its first on-time budget in six years.