SACRAMENTO, CALIF. ? The California Assembly approved a compromise budget Tuesday that curtails a record deficit by slashing spending, raising fees and relying on borrowing, but still leaves the state facing a big spending gap next summer.

The proposal approved in the House’s longest session ever now goes to Gov. Gray Davis, who said he would sign it. Analysts say the Democrat, who faces a historic recall election in October, could get a boost in the polls with a budget plan in place.

The proposal avoids raising sales and income taxes, but counts on a $4 billion annual car tax increase that state officials triggered earlier this year and the elimination of a tax break for manufacturers.

After more than 27 hours of negotiations, the budget bill passed 56-22. That was enough to give the near-$100 billion proposal the two-thirds majority required to pass it.

“It’s not pretty, but it could have been a whole lot uglier,” Davis said. “It is far from perfect, but further delay was unacceptable.”

The budget trims the state’s record deficit that could have mushroomed to nearly $40 billion by next July, Davis said. Instead, the shortfall will be about $8 billion by next summer.