This all started when the governor vetoed the budget for the rest of this fiscal year passed by the House and Senate. It included a $142 million property tax rebate that the governor thought was ill-conceived.

But, the governor said on Tuesday, that after the regular session ended, negotiations on a compromise went nowhere -- so he's acting on his own, without a special session.

Gov. Perdue said he's taking back his veto -- at least most of it.

He'll now sign the $700 million budget. But, using his line-item veto, he's eliminating the property tax rebate the House wanted, putting that money into the state's reserve fund instead.

Tthe governor said this budget still shortchanges prosecutors and adult literacy programs, among others. He said the Senate was willing to compromise. But he charged House leaders weren't interested in working out something to serve all Georgia's citizens.

This budget will solve one big short-term problem -- plugging the shortfall in PeachCare. The state's health insurance program for low and moderate income kids.

It remains to be seen, though, whether this will lift the freeze on new PeachCare enrollments.