Governor Schwarzenegger signed a deal, that will allegedly close the state's $19-billion dollar deficit, tonight after five hours of negotiating. No details were released, but it is rumored that they were able "to ward off tax increases." The details of the new budget are said to be released in a press conference on Wednesday and there could be a vote as early as Thursday. Pension reform is still one of the biggest issues of this budget negotiation. Schwarzenegger wants to reduce public employee benefits while Democratic lawmakers want to come to a compromise with unions. How to raise money without raising taxes was another obstacle in negotiations. Aaron McLear, the governor's press secretary, stated that "'He will not sign a budget that increases taxes...He still feels exactly the same way.'" Californians will find out next week how Sacramento plans to fix the deficit.
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