State Budget, California Budget Crisis | featured news

The ratings agency Standard & Poor's warned on Tuesday that it could downgrade California's financial outlook if lawmakers don't pass a credible budget plan this year.

The longest-ever state budget impasse moved toward a close as the lower house approved a spending blueprint after working through the night, but not before stuffing it with last-minute favors for special interests.

A top California lawmaker said on Friday the state's leaders had reached a final agreement on closing a $19.1 billion deficit to balance the state budget, ending a record stalemate over a spending plan.