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Gov. Terry McAuliffe and General Assembly leaders have reached an agreement on cutting the two-year state budget in the face of an estimated $2.4 billion revenue shortfall.

The governor and leaders of the House of Delegates and Senate will announce the budget deal Monday, McAuliffe confirmed Saturday.

“It shows that when people are willing to come together and work together in a bipartisan way, good things happen,” McAuliffe said after an appearance Saturday before the Virginia Governmental Employees Association.

The agreement will identify spending cuts to close a $346 million revenue gap in the fiscal year that began July 1 and partially address a $536 million shortfall in the second year of the two-year budget, with the remainder subject to action by McAuliffe and the assembly in next year’s legislative session.

Budget leaders in both chambers will introduce legislation this week for the assembly to consider in a special session that will convene Thursday to address health insurance coverage and fill vacant judgeships.

The proposed approach relies on “reversion accounts” that will require state agencies, public colleges and universities, and local governments to pay back a portion of their state aid, according to legislative sources who asked not to be identified.