- Associated Press - Thursday, June 9, 2016

SACRAMENTO, Calif. (AP) - The Latest on state budget discussions in the California Legislature (all times local):

11 p.m.

A key California legislative committee has advanced a budget compromise between Gov. Jerry Brown and Democratic legislative leaders.

The approval by the budget conference committee Thursday evening sets up votes in the full Assembly and Senate, likely next week.

The agreement expands funding for subsidized child care and eliminates a controversial welfare policy that restricted cash assistance for more nearly 130,000 children. It also includes $400 million for housing construction to help people with low income. But it’s contingent on lawmakers approving a controversial proposal by Brown to speed up development in some neighborhoods.

Legislative leaders agreed to Brown’s demand to save $2 billion more than required, boosting the state’s reserve fund in case of a recession.

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9 p.m.

A California budget compromise between Gov. Jerry Brown and legislative leaders would increase funding for University of California, but to get all the money, the schools would have to cap out-of-state enrollment.

A key legislative budget panel approved the funding on Thursday evening, setting up votes in the full Assembly and Senate.

The budget compromise increases UC funding by $144 million. But $19 million of that would only be available if UC schools enroll at least 2,500 more California residents and the UC Board of Regents adopts a policy capping enrollment by out-of-state students.

In March, the state auditor issued a scathing report saying the UC has undermined students by admitting a growing number of nonresident students.

California State University campuses would also get a funding increase under the compromise.

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5:40 p.m.

Gov. Jerry Brown and Democratic legislative leaders have reached an agreement on a state budget that expands funding for subsidized child care and eliminates a controversial welfare policy that restricted cash assistance for more than 100,000 children.

Brown spokesman Evan Westrup says the agreement was reached on Thursday.

A key legislative budget panel quickly scheduled an evening meeting to approve it, setting up votes in the full Assembly and Senate next week.

The agreement includes $400 million for housing construction to help people with low income. But it’s contingent on lawmakers approving a controversial proposal by Brown to speed up development in some neighborhoods.

Legislative leaders agreed to Brown’s demand to save $2 billion more than required, boosting the state’s reserve fund in case of a recession.

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4:15 p.m.

California lawmakers have scheduled a meeting on the budget as the state Legislature and Gov. Jerry Brown rush to negotiate a spending plan ahead of a deadline next week.

The budget conference committee is scheduled to meet Thursday evening and could send the budget to the full Assembly and Senate. Lawmakers have until Wednesday to approve a balanced budget or they forfeit pay.

Gov. Jerry Brown proposed a $122.2 billion spending plan last month that generally continues his preference for saving cash over expanding state services.

Democratic legislative leaders have pressed for more spending on affordable housing, universities and subsidized child care.

By law, about half the state’s spending goes to K-12 education and higher education.

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