SAN FRANCISCO (Reuters) - California Governor Arnold Schwarzenegger and top lawmakers have a framework for an agreement on a state budget and hope to reach a final deal on Monday, a spokesman for the governor said on Thursday.
"They at least conceptually have come to an agreement today, which is significant," Schwarzenegger spokesman Aaron McLear told Reuters, adding that he had no details on the framework.
California's government has been operating for 85 days without a spending plan in place for its current fiscal year, setting a record for a state notorious for late budgets.
Schwarzenegger and top lawmakers have been in talks this week in southern California, where the governor is recovering from a cold, to reach a budget deal, which requires closing a shortfall of $19.1 billion.
McLear said Schwarzenegger and legislative leaders would work over the weekend to hammer out details of an agreement with the goal of completing it on Monday.
Earlier this month, State Controller John Chiang said his office was planning for the possibility it might have to issue IOUs next month if a budget deal was not reached soon.
IOUs, which California issued temporarily last year during a budget impasse, would allow the state government to preserve its cash for priority payments, including payments to investors holding its debt.
(Reporting by Jim Christie; Editing by Gary Hill)