LOS ANGELES, July 25 -- California legislators moved closer today to resolving the state's $38 billion budget deficit, promising a vote Sunday night that will likely end a long and bitterly partisan stalemate that has ruined the state's credit rating and fueled the efforts to recall Gov. Gray Davis (D).
Democrat and Republican leaders in the California state Senate said that they are still negotiating specific budget cuts but had agreed in principle to avoid new taxes as part of the tentative deal -- although they will keep in place Davis's order last month to triple vehicle licensing fees, for an average increase to motorists of $135 a year. Instead, the lawmakers are proposing to roll over more than $10 billion of the budget deficit into bond debt.
The tentative agreement could provide help to Davis's efforts to persuade voters not to recall him in the Oct. 7 election. Polls this summer have suggested that some Californians likely to vote to recall the governor might be less inclined to take that step if the budget crisis were resolved. ---
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