Members of the political party caucuses still must agree to the plan, which could be approved by the special session as soon as Sunday.
The deal was reached after two meetings between legislative leaders and Gov. Jim Gibbons on Day 5 of the special session.
Gibbons had initially proposed a 10 percent cut in state spending on K-12 and higher education for a potential savings of $250 million, and Democrats were pushing for a 5 percent reduction.
The level of education cuts was the major spending dispute as lawmakers put together the plan to fill an $887 million budget gap.
Governor Gibbons used his veto pen and the potential of action under emergency powers should the legislature not come to agreement on budget cuts. He has been sucessful, so far, in keeping any proposed tax or tax payment advance from being passed.
Deep cuts under the governor in 2008 and 2009, along with severe drops in property value and tax revenue, already have K-12 and higher education operating at budget levels lower than 2004, despite inflation and a large increase in students and demand.
Sources: Las Vegas Review Journal, Las Vegas Sun, AP, Channel 3 and Channel 8 news.