California budget bill passes

The main spending plan cleared the Senate this morning after being passed in the Assembly last night, a mere 100 days into the fiscal year. It plugs a $19.1 billion deficit by cutting spending, counting on better-than-expected tax collections and more money from the federal government. From Bloomberg:

The agreement, if signed by Governor Arnold Schwarzenegger, would end the longest-ever period in which the state has operated without an enacted budget and may avert the need for IOUs, which Controller John Chiang said he might have to use this month. It also frees Treasurer Bill Lockyer to begin issuing $10 billion in short-term notes to pay state bills. The spending plan covers the year that began July 1.