Budget Deal Reached for California

Gov. Jerry Brown and legislative leaders have reached agreement on major elements of the state budget, including a controversial school funding proposal and other issues, sources said.

In a victory for the Democratic governor, sources said the agreement will largely assume the more conservative revenue estimates proposed by Brown. Legislative Democrats had urged about $2 billion more in spending on state services and programs than Brown proposed, after the state's nonpartisan legislative analyst issued a rosier economic forecast than Brown's.

In a compromise on Brown's proposal to overhaul the state education system and to shift more money to poor and English-learning students, all school districts would receive additional base revenue.

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