California Governor Arnold Schwarzenegger

After spending months in crisis over the budget, and the deficit, hanging over the state, California lawmakers have come to an agreement that will potentially resolve the issue.

According to a spokesperson from Gov. Arnold Schwarzenegger’s office, a budget deal was reached on Friday, but no details are being released.

The potential agreement could salvage the $19 billion deficit the state has incurred. Now that the agreement has been reached, it will be offered to the California Legislature on Wednesday for a Thursday vote.

While no one involved in the agreement would speak for the record, some details have been leaked. It appears that the agreement involved $7.5 billion in spending cuts, some hopeful projections of an improving economy, and an increase in funding from the federal government. No new taxes will be proposed.

The budget is overdue by several months. It was intended to be passed by the middle of June, but no agreements could be made on the details. The fiscal year began on July 1 with no state budget in place.

The budget impasse left the state in a critical situation. Many state workers have been on unpaid leave, and the possibility of IOUs being handed out to workers loomed. In the meantime, the governor and lawmakers have spent months battling over ways they could resolve the deficit and settle on a budget for the state.