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Schwarzenegger Signs California Budget to End Record Impasse

California Governor Arnold Schwarzenegger signed into law a plan intended to spare the world’s eighth-largest economy from having to issue IOUs for the second year in a row.

The $87 billion budget closed a gap of about $19 billion. Schwarzenegger, a Republican whose term ends in January, used his veto authority to cut about $1 billion out of the plan passed by lawmakers before he signed it late yesterday.