California governor, Democrats reach budget deal

Reuters News
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Posted: Jun 27, 2011 6:38 PM
California governor, Democrats reach budget deal

SAN FRANCISCO (Reuters) - California Governor Jerry Brown and the Democratic leaders of the state Senate and Assembly on Monday said they had reached a budget deal days before the new fiscal year begins.

The leaders in a news conference did not immediately outline the elements of the plan, which must close a $10 billion budget gap. The next fiscal year begins on Friday.

Republicans have not joined in the proposal, said Brown, who added that he would seriously consider sponsoring a ballot initiative to push forward his proposal to extend tax hikes for several years.

(Reporting by Jim Christie and Peter Henderson, Editing by Sandra Maler)