RALEIGH, (SGRToday.com) - Senate and House leadership, along with Gov. Pat McCrory, agreed earlier this week that the new general fund operating budget will total $21.735 billion. But now the serious negotiations begin over how to cut the financial pie in a way all three can support.

The issues to be decided include education and transportation. Some want teacher assistants to be cut from the budget while others say they are key to operating a classroom.

The governor has proposed two infrastructure bonds he wants voter to decide on in the fall, but some legislative leaders aren't convinced of the need for borrowing.

The agreement on the bottom line number came Tuesday and was announced by the governor following a breakfast at the Executive Mansion in Raleigh.

The new fiscal year began July 1. The state is operating under a Continuing Resolution -- the second -- that expires August 31.

Last week, the Governor signed a Continuing Resolution giving the General Assembly until August 31 to reach an agreement.