Wisconsin lawmakers said Monday they have reached a deal to solve the state's $527 million budget shortfall.

The deal, as described in a memo prepared by the Legislative Fiscal Bureau, would delay a $125 million payment to schools to take it off the books for the current budget cycle. Schools would still get all the money they are due.

The state also would generate $209 million with a refinancing of payments owed by tobacco companies under a multistate settlement.

More details were announced by legislative leaders at a late-morning news conference in the Capitol.

"We believe we have an agreement that is acceptable to all parties," said John Murray, spokesman to Assembly Speaker Mike Huebsch, R-West Salem.

Gov. Jim Doyle's spokeswoman Jessica Erickson had no immediate comment.

Doyle had warned that without a deal by Tuesday, up to $260 million in bids for summer road projects could be in jeopardy.

Negotiations intensified late last week, and lawmakers were told to keep their calendars clear Tuesday through Thursday of this week for a session to approve a deal.

The fiscal bureau's memo says the plan would raise $15 million by collecting rental and interest expenses from companies that have claimed them as a way to reduce their taxes.

The state's reserves would drop from $40 million to about $25 million under the plan, the memo said. About $97 million would be taken from the state's reserves, and state government would be cut about $69 million.

The plan also would add cell phones to the state's Do Not Call list, provide new child care subsidies and attempt to tighten restrictions to reduce invasive species.

A bipartisan committee of lawmakers from both the Senate and Assembly was scheduled to meet Monday afternoon to approve the deal and send it to the Senate. Approval by the so-called conference committee would result in a bill that has to be accepted or rejected without any changes.

Lawmakers also are expected to pass an unrelated bill enacting a multistate compact protecting Great Lakes water when they come into session.

(Copyright 2008 by The Associated Press. All Rights Reserved.)