SAN FRANCISCO (Reuters) - Gov. Arnold Schwarzenegger and top lawmakers in California's Assembly have reached a tentative compromise on revising a labor law that has been one of the sticking points holding up a broader state budget deal, a legislative aide said on Tuesday.þþCalifornia's budget is almost three weeks overdue and negotiations between Schwarzenegger and lawmakers have been stalemated over a handful of issues.þþOne issue appeared nearly resolved when Schwarzenegger, Assembly Leader Fabian Nunez and Assembly Republican Leader Kevin McCarthy struck an agreement to revise a law barring schools from hiring private firms to provide janitorial, groundskeeper and transportation services to public schools.þþAn aide to McCarthy told Reuters that staff from his office and from the offices of Schwarzenegger and Nunez were heading into an afternoon meeting to hammer out details of the agreement, which would ease rules on schools to allow them to contract for services.þþRepresentatives for Schwarzenegger and Nunez were not immediately available for comment on the tentative agreement, which leaves two major points in the state's budget stalemate to resolve.þþThe Republican governor and lawmakers in California's Democrat-controlled state legislature remain at odds over his plan for the state to tap local governments for $2.6 billion over two years in exchange for placing local coffers off limits to future state raids.þþAdditionally, Democratic lawmakers remain opposed to a Republican plan to repeal legislation signed by former Gov. Gray Davis allowing employees to sue employers to enforce labor laws. Schwarzenegger supports the proposed repeal.þþSchwarzenegger has proposed a $103 billion state spending plan for the fiscal year that started July 1. With budget talks making little progress, tempers have flared in Sacramento. The Hollywood icon turned politician recently took one of his most partisan swings yet at Democratic lawmakers, calling them ``girlie men'' unable to stand up to special interests.þþSenate President Pro Tem John Burton has said the taunt could further set back talks on Schwarzenegger's budget plan, which would close the state's shortfall.þþBond analysts have said a balanced budget could ease pressure on California's near-junk-status credit rating. However, many bond analysts fear shortfalls could emerge in future years. þþþþ
Source: NY Times
