The California Legislature approved the 2007-2008 state budget Aug. 21. In a statement, Gov. Schwarzenegger called the process challenging. He added, however, “This budget also limits spending growth to less than one percent, pays down $2.5 billion in debt, fully funds education and public safety, and allows us to move forward with the infrastructure bond measures that voters approved last year. We now will move forward together on the issues we’ve been elected to address such as health care, a comprehensive water plan, and redistricting reform.” The budget’s passing was a relief to the California Hospital Association, as its delay caused more than $1 billion in Medi-Cal payments to reach state hospitals late. While Medi-Cal claims were processed, payments could not be released, according to the Department of Health Care Services. Once the new budget is signed into law by Gov. Schwarzenegger and officially chaptered, Medi-Cal payments should resume as early next week.