Deal Ends Budget Impasse

Schwarzenegger, lawmakers dodge veto showdown
By Peter Fearon,  Newser Staff
Posted Sep 19, 2008 1:55 AM CDT
Gov. Arnold Schwarzenegger and California lawmakers have hammered out a deal to end the 80-day state budget stand-off.   (AP Photo/Gary Kazanjian)
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(Newser) – Gov. Arnold Schwarzenegger and the California state legislature have ended a nasty budget showdown with a compromise expected to be approved today, reports the San Francisco Chronicle. The agreement eliminates extra withholding from workers' paychecks, and bridges a $17 billion budget gap largely  by adding penalties on corporations that underpay quarterly taxes and reducing reserve funds.The deal ended an 80-day stand-off in which Schwarzenegger threatened to veto the budget—and lawmakers threatened to override his veto.