SACRAMENTO - The compromise budget that state lawmakers approved Thursday not only took a bite out of California’s ongoing deficit, but also included full and early repayment a $1.2 billion loan to cities and counties.

This budget item will deliver $576,000 to Del Norte County, $2.6 million to Humboldt County, $1.25 million to Lake County, $1.8 million to Mendocino County, $9.7 million to Sonoma County, and $273,000 to Trinity County. Cities within those counties also will receive a cash infusion.

“There weren’t very many bright spots in this budget,” said Assemblywoman Patty Berg, D-Eureka. “But this was one of them.”

At issue is $1.2 billion, known in budget terms as the Vehicle License Fee Backfill, which was withheld from cities and counties in the summer of 2003 as part of efforts to close a nearly $38 billion budget deficit. At that time, cities and counties were receiving about $4 billion of state funds annually to make up for local revenue that was lost when lawmakers reduced the car tax. The state withheld payment for nearly four months, and the $1.2 billion in this year’s budget is to repay that debt.

The debt was due to be repaid in the 2006-2007 fiscal year, but legislative leaders instead agreed to speed up the repayment and return all of the money ahead of time, in the current fiscal year.

“When I came into office, the state was facing a $38 billion deficit, and everyone has had to help shoulder that burden,” said Berg. “Cities and counties have certainly had to do their share, and now we’re able to repay them for a significant sacrifice."

Berg had hoped to deliver more money for schools and health care, but voted for this year’s $117 billion spending plan “as the best that could be done in the current fiscal climate.”