California Budget accord reached: Calling for deep cuts and avoiding broad tax hikes, Schwarzenegger and legislative leaders agree

The L.A. Times reports:

Gov. Arnold Schwarzenegger and legislative leaders announced today that they have reached a deal to close California's $26.3-billion deficit and begin paying all of the state's bills again.

The agreement does not include any broad-based tax increases, they said, and relies largely on deep cuts in government services to wipe out the deficit.

Most of the details have yet to be released. But interviews with lawmakers and staff involved in the negotiations suggest that the plan would reshape government in California, significantly scaling back many services that have been offered to residents -- particularly the elderly and the poor -- for years.

This is a big story.