LOS ANGELES, Dec. 12 (Xinhuanet) -- California newly-elected Governor Arnold Schwarzenegger on Friday scored his biggest victory since taking over power as the legislature approved his fiscal recovery plan.

    The Hollywood-actor turned governor signed the plan into law inthe state capitol of Sacramento after the Senate approved it, one day after the Assembly passed it after heated debate.

    "Today, I'm a happy governor," Schwarzenegger said during a signing ceremony attended by legislative leaders. "The recovery plan that I'm about to sign, I'm very happy about because both parties came together."

    "This is a compromise," Senate Republican Leader Jim Brulte said. "What it does is force this state to begin to live within our means. This bill is better than the current situation."

    Senators voted 35-5 for the spending restrictions and the 27-12vote for the issue of 15 billion US dollars in bonds was just enough to get that measure on California's March ballot.

    The bill is the result of compromise by Schwarzenegger and legislative Republicans, who had pushed for tougher economic measures, after Democrats who control both houses blocked their attempts last week.

    The package has many provisions, including a mandate that spending cannot exceed revenues in any year, and long-term borrowing to pay operating expenses would not be allowed, except for the 15-billion-dollar bond.

    Meanwhile, the governor would have the authority to force lawmakers to deal with a fiscal emergency by calling a special session and stopping all other business until solutions are adopted.

    The legislature also would have to create a reserve fund. Starting in 2006-07 fiscal year, lawmakers would be required to set aside 1 percent of general fund revenues into an emergency fund and increase the fund each year until it reaches 8 billion dollars.

    Still, many Republicans criticized the package for its failure to impose tougher spending cap as it was suggested by Schwarzenegger.

    "This bill is not as good as it could be," said Republican Leader Dave Cox on Thursday. "But let no one think this is a spending cap. It is a bill that is better than what is currently in force, but it will not restrain spending."

    Schwarzenegger, who took office last month after winning the Oct. 7 recall election that ousted former Democrat Governor Gray Davis, also drew praises for his work in bringing the sides together.

    "This is a good common-sense measure," said Assemblyman DarrellSteinberg, a Democrat from Sacramento. "It does not solve our budget problems, but if we follow the process that led to this agreement, we will solve our problems." Enditem