Governor, lawmakers agree to early budget package
The measures include tax breaks for new home buyers and green-technology companies, and diversion of $1.1 billion in transit funds to pay down the estimated $20-billion deficit.
Reporting from Sacramento — After weeks of bickering over how to cut the deficit-ridden budget, Gov. Arnold Schwarzenegger and lawmakers agreed Monday to trim $1.1 billion from mass transit but give new tax breaks to home buyers and green-technology companies.
The governor, who signed part of the package into law Monday evening, said the tax incentives -- which could add to the budget woes -- are crucial to the state's economic recovery.
"The package of bills as written will provide significant benefit to the state's general fund and will help put Californians back to work," he said in a statement. He expects to sign the rest of the package later in the week.
The linchpin of the legislation is the tax credit of up to $10,000 for first-time home buyers and those purchasing newly built homes. It would take effect May 1.
Another element of the package would allow companies that buy green-technology manufacturing equipment to avoid sales tax on those purchases for 10 years. It would start immediately.
The agreement came after Schwarzenegger announced last week that he would not approve the transit-reduction
