SACRAMENTO, Calif. — (AP) — California's Democratic legislative leaders have reached an agreement on the state budget that covers an estimated $54 billion shortfall.

The deal announced Wednesday avoids most of Gov. Gavin Newsom's proposed budget cuts to public education and health care services but also relies heavily on increased federal funding coming in to address the coronavirus pandemic. It retains Newsom’s proposed tax increase on some businesses that would generate $4.4 billion and would delay $9 billion in payments to public schools. It also includes more money for homeless services and universities.

The Legislature has until June 15 to work out a deal with Newsom and pass a budget.