Schwarzenegger makes cuts to end budget clash

Gov. Arnold Schwarzenegger signed the state’s $145.5-billion budget for the year Friday, bringing to an end a standoff between Senate Democrats and minority Republicans, who had to cast two votes to pass it.

The governor got the GOP on board by agreeing to eliminate the operating deficit, and he cut $703 million from proposed spending and created the largest reserve fund ever at $4.1 billion, according to information from the governor’s office.

The biggest cut was $527 million from the state Health and Human Services Department, followed by $70 million from general government spending, $39 million from the Corrections Department and smaller cuts in other areas.

— Alicia Robinson