Update: Republican leaders have held a press conference giving more details on the budget deal. More coverage to follow.

Republican legislative leaders have apparently reached a deal on a new state budget.

The lawmakers will announce a deal Wednesday morning that they say will resolve Wisconsin's state budget impasse. The deal would remove a plan to finance a new Milwaukee Bucks arena from the budget, along with changes to Wisconsin's prevailing wage law for government construction projects. Both issues have sharply divided Republicans, which is partly why budget talks hit a standstill about a month ago.

Leaving those matters out of the budget means there's no guarantee either will pass, especially when it comes to the Bucks deal.

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The other big hangup — transportation funding — will stay in the budget. Republican lawmakers will cut transportation borrowing, though not by as much as Assembly Republicans were discussing.

Joint Finance Committee co-chair Rep. John Nygren told The Associated Press on Tuesday the deal on roads cuts is "pretty consistent" with what Assembly Republicans had wanted. Lawmakers have wanted to avoid protecting the Zoo Interchange near Milwaukee from cuts, out of fear that would mean rural projects would bear bigger hits.

The Legislature's Joint Finance Committee will reportedly meet Thursday to vote on the budget. The full Assembly and Senate could then vote on the bill by next week.

The deal was reached on the last day of the fiscal year. Republican senators met in a private caucus for five hours Tuesday to discuss the three main outstanding issues in the budget: roads funding, the financing plan for the Milwaukee Bucks facility, and the prevailing wage.