Governor Jerry Brown and legislative leaders announced Friday that they've reached a budget agreement.
"The leaders of the Legislature have worked very hard to build a solid and sustainable budget that pays down debt, brings stability to the teachers' pension system and builds at long last a reliable Rainy Day Fund," Brown said in a statement.
The deal comes a day after a committee finished vetting some high-profile sticking points.
We've previously reported on portions of the deal, including an expansion of pre-school for low income children and the use of cap-and-trade money for high-speed rail and affordable housing.
State Senate President Pro Tem Darrell Steinberg touted cooperation.
"We're changing the course of our failed corrections system with better solutions to help offenders become productive citizens, and making smart investments to fight climate change with permanent funding for mass transit and affordable housing. I want to thank the Governor, my Senate colleagues and the Assembly for working so well together in reaching an agreement that strikes a solid balance of avoiding the deficits of the past while creating a brighter future for Californians."
Speaker Toni Atkins says this budget isn't about "getting out of a hole" but "building a foundation for the future.
Lawmakers are scheduled to vote on the budget deal on Sunday.