NASHVILLE — House and Senate leaders said late today they struck an agreement on the state’s $29.6 billion spending plan for 2009-2010 that slashes recurring state expenditures but uses bonds to meet higher education construction commitments such as the new UTC library.

The state-funded portion of the budget, including items such as federal spending, would drop from $13.5 billion in the 2009 budget, which ends June 30, to $12.1 billion in the budget that begins July 1, according to Bredesen administration officials.

“I think it’s pretty locked in,” said Sen. Andy Berke, D-Chattanooga, of the deal. “We’re passing for the most part the governor’s budget. I’m pleased we were able to include a lot of projects like the UTC library which will bring the jobs of today and tomorrow to the district and the state.”

Rep. Gerald McCormick, R-Chattanooga, agreed, saying, “there has been a deal struck on the budget that would protect the UTC library, and the Volkswagen supplier training funds are not in danger. I think we’ve been reassured that’s OK.”

For complete details, see tomorrow's Chattanooga Times Free Press.