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Carson City - So long, balanced budget. Hello, deficit spending. Legislators and Gov. Jim Gibbons announced on Tuesday a tentative agreement to bridge the state's $300 million budget shortfall by making $150 million in cuts and - to spare agencies even deeper cuts - borrowing $150 million from a local government investment account. If the plan is approved by the Legislature during a special session set for Dec. 8, it would be the first time since at least the Great Depression that Nevada has balanced its budget by borrowing money, according to state government observers.

Worried about a growing number of changes, miscalculations and a worsening economic forecast, Democratic lawmakers want Gov. Jim Gibbons to tell them how he plans to address the ever expanding budget deficit that has opened since he submitted his proposed budget.

CARSON CITY -- Gov. Jim Gibbons said Friday he has reached an agreement with legislative leaders on a bipartisan plan to handle state government's $341.7 million budget deficit without laying off workers or cutting essential services. "This will have a minimal impact on state services," Gibbons said about their plan designed to balance the budget in the fiscal year that ends June 30.