| [00:00.00] | After weeks of negotiations, |
| [00:03.86] | the governor of California Arnold Schwarzenegger |
| [00:06.59] | has reached an outline agreement with legislative leaders |
| [00:09.21] | on a plan to tackle the state's massive budget shortfall. |
| [00:12.25] | The deal, which will have to be approved by the state legislature, |
| [00:15.74] | includes plans for billions of dollars in budget cuts, |
| [00:18.49] | but no tax rises. Peter Bolger reports. |
| [00:21.48] | California has a budget shortfall of 26 billion dollars. |
| [00:26.39] | State workers have been put on short time |
| [00:28.88] | and many social and education services have been cut. |
| [00:32.05] | The state has even resorted |
| [00:34.35] | to issuing IOUs to companies it does business with |
| [00:37.21] | and to individuals who are owed tax refunds. |
| [00:40.01] | Governor Schwarzenegger described the comprised deal |
| [00:42.94] | as a basic agreement to close the state's huge deficit. |
| [00:46.67] | He and fellow Republicans have refused to raise taxes, |
| [00:50.34] | all the opposition Democrats said fought to preserve social services. |
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