A committee of California lawmakers approved on Friday a budget plan based on a $104 billion general fund for the state's next fiscal year, but it is unlikely the full legislature will endorse it by the fiscal year's start on Sunday, lawmakers said.
Democrats who control the committee advanced the budget plan over Republican complaints, promising those concerns could be addressed in separate legislation with help from Republican Gov. Arnold Schwarzenegger.
"After six months of hearings and collaboration, we've completed the budget committee process and have a balanced, fair and responsible budget," Democratic Assemblyman John Laird, chairman of the budget conference committee, said in a statement.
Assembly Republican Leader Mike Villines said the committee's budget was not the last word on a spending plan the legislature can reconcile with Schwarzenegger's budget proposal for California's 2007-2008 fiscal year.
"The conclusion of the conference committee should not be seen as an end, but rather a beginning," Villines said in a statement. "I look forward to continuing to work with the legislative leaders and the governor to craft a responsible, balanced budget."
Other top lawmakers told Reuters in phone interviews that a budget agreement between lawmakers from both parties and Schwarzenegger was very unlikely before Sunday. Leaders of the Democrat-led legislature and the celebrity Republican governor had hoped to have a budget deal done before the start of the fiscal year, a rare accomplishment in California politics.
Last year Schwarzenegger signed the current budget on June 30, marking the first time in six years a California governor authorised a spending plan ahead of a new fiscal year. Schwarzenegger in May proposed an overall spending plan for the new fiscal year of $145.86 billion, including a general fund budget of $103.77 billion.
Democrats said the conference committee's spending plan would balance the state's books, provide a $2.1 billion reserve and would not raise taxes. Schwarzenegger's budget plan proposed a $2.2 billion reserve, and he opposes tax increases.
Democrats said the committee's budget would also use $2.5 billion to pay the state's debt from its Economic Recovery Bonds. Schwarzenegger wants to pay $3.1 billion of state debt from general fund revenues.