California lawmakers approved "the tardiest budget in state history this morning" after an epic session at the Capitol this morning. "The $87.5 billion spending plan relies on rosy assumptions about revenues from taxpayers and the federal government, as well as reductions to state worker pay, prisons, and social services," reports the Sacramento Bee. "Gov. Arnold Schwarzenegger expects to sign it as soon as today, enacting the final budget of his gubernatorial career."

The budget was held up for months due to budget cut and tax raising concerns from Democrats and Republican leaders. In the end, "Democrats and labor unions would agree to cut pensions for future state workers, which Schwarzenegger demanded all year."

[Sacto Bee]