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State Lawmakers Stay Up to 2:30 a.m., Pass Budget

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State Sen. Abel Maldonado, R-Santa Maria, yawns during the late night debate over the state budget at the Capitol in Sacramento(AP Photo/Rich Pedroncelli)

It only took 77 days into the new fiscal year for California lawmakers to make a deal and pass the state's budget but when all was said and done, Gov. Arnold Schwarzenegger threatened to veto it. They debated early into the morning but made a plan that reportedly would solve the state's $15.2 billion deficit and would produce a $104.3 billion general fund that the Sacramento Bee says would bring "short-term relief but likely lead to shortfalls in future years."

Schwarzenegger said he would veto it hours before the budget was passed if he didn't get a few key changers were made but legislators rejected his rainy-day fund wish to put restrictions on it, otherwise it would become a raided slush fund. "We would definitely discuss it," Assembly Speaker Karen Bass told the paper.