Budget talks reach tentative deal on school funds, sources say [California]

[FarCenter]

By Kevin Yamamura [e-mail] Published: Saturday, Jul. 18, 2009 - 12:00 am | Page 1A

Gov. Arnold Schwarzenegger and legislative leaders agreed Friday in concept to pay schools an extra $9.5 billion in future years without permanently changing the state constitution, sources close to negotiations said.

The tentative education agreement removes a significant political hurdle to closing the state's $26 billion deficit. Democratic leaders predicted they could reach a final budget agreement as soon as Sunday, the next time leaders convene for budget talks.

Leaders publicly said the education piece remains an open question while attorneys and budget aides draft bill language today. They also have to finalize cuts to health and welfare programs and ways to capture money from local governments.

"We are smiling," said Senate President Pro Tem Darrell Steinberg, D-Sacramento. "You know, negotiations have a way of taking you down real low and up real high, and until everything is done there is not an agreement, a final deal. But I'll go a tiny bit farther and just say that I expect by Sunday night we are likely to have an agreement."
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