California resolves budget gridlock

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California's legislature has ended a budget impasse that lasted nearly two months. As a result of the resolution, nursing homes in the state could start receiving Medicaid payments by the end of the week.

During the stalemate, State Controller John Chiang halted $1 billion in payments to nursing homes, hospitals, colleges and dozens of state suppliers. Many nursing homes had to extend lines of credit to make payroll, according to the California Association of Health Facilities.

Lawmakers, who returned from their August recess this week, agreed to a $145 billion spending plan that eliminates the state's persistent deficit. Gov. Arnold Schwarzenegger (R) was expected to sign it.