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The Deal to Save the Budget

The Sacramento Bee has more details on the budget deal reached:

Legislators ultimately agreed Thursday to tighten the rainy-day fund so that it can be tapped only during bad economic times, a concession from Democrats who wanted greater ability to access the money.

Lawmakers also proposed making up the lost $1.5 billion revenue by increasing penalties on corporations that underpay taxes. Leaders agreed to lower the amount of the state’s reserve fund from $1.2 billion to $800 million.

Under the latest budget plan, corporations that underpay their taxes by $1 million or more would see penalties rise from 10 percent to 20 percent. The deal also assumes a cancellation of a proposed tax amnesty program.

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