The plan the Senate approved Monday would cut spending and increase taxes and fees to bridge a $24.3 billion budget deficit, but Schwarzenegger vows to veto it.

Senate President Pro Tem Darrell Steinberg said Democrats would not accept the deep cuts in college aid, health care and welfare programs sought by Schwarzenegger.

The Assembly approved many of the same bills Sunday night following hours of debate.

The state controller has said he will have to start issuing the IOUs unless lawmakers balance the budget before the fiscal year ends Tuesday.