After a week of negotiations, the Maryland Senate and House of Delegates have enacted a $31.2 billion state budget for fiscal 2009, trimming almost $500 million from Gov. Martin O?Malley?s spending plans but leaving at least partial funding for new initiatives on health care and the Chesapeake Bay.

The total approved budget is about 4.5 percent higher than this year?s. The plan leaves almost $1 billion in cash reserves, money set aside in case revenues decline further in the economic downturn. This is $162 million more than the surplus O?Malley originally planned.