LOS ANGELES, May 14 (UPI) -- The new speaker of the California Assembly, Democrat Karen Bass, has become the first African-American woman in U.S. history to lead a legislative body.

Just one day after her swearing-in ceremony, Bass faced the beginning of negotiations with Gov. Arnold Schwarzenegger over his plan to solve the state's budget shortfall, The Los Angeles Times reported Wednesday.

Bass has said she wants a balanced approach to the budget that will protect the state's most vulnerable citizens. She also expressed optimism that California's financial problems will force lawmakers and the governor to reach consensus quickly on a solution.

California's comptroller has warned that the state could run out of cash sometime in August.

A new budget is supposed to be in place for the start of the new fiscal year July 1.

At Tuesday's swearing-in, Schwarzenegger praised Bass as an "extraordinary person," adding she earned her post "the old-fashioned way" though hard work.