Schwarzenegger outlines drastic budget cuts

Gov. Arnold Schwarzenegger today proposed major cuts to education, healthcare, prisons and other services on the eve of a special election that will determine how many billions he and lawmakers must slice from the budget to curtail a growing shortfall.

The governor offered two scenarios. The first was grim, to address a $15.4-billion deficit that finance officials say the state will face even if voters approve a set of ballot measures Tuesday. The second was devastating, intended to close a $21.3-billion gap if the measures fail.


The governor's plan, unveiled this afternoon, would take $3 billion from public schools if the ballot propositions pass and $5 billion if they fail.

In either case, Schwarzenegger would borrow $6 billion to pay bills, lay off 5,000 workers, cut funding to hospitals, sell the Los Angeles Coliseum and Sports Arena, San Quentin State Prison and other facilities, consolidate state agencies and eliminate some state boards and commissions.

"We are going to do everything that we can to make sure that we are going to make ends meet, but it's going to be tough," Schwarzenegger said. "And I think that state government has to make the same sacrifices as the ordinary folks make out there."


Under the worst scenario, the state would also borrow up to $2 billion from local government, cut 225,000 children from a state healthcare program and release up to 19,000 undocumented immigrants from state prisons, turning them over to federal authorities. Up to 23,000 other state prisoners could be sent to county jails.

Only three months ago, Schwarzenegger and legislative leaders reached a budget deal they said would carry the state through the middle of next year. But a worsening economy and falling tax revenues have thrown that plan way out of balance.

Polls show that California voters are ready to reject Tuesday's proposals for altering the state lottery and diverting money from voter-approved programs -- ideas that accounted for $6 billion of the solution Schwarzenegger and lawmakers reached in February.

Schwarzenegger said he moved up the release of his revised budget, originally scheduled for May 28, to let voters know the consequences of rejecting the ballot measures on Tuesday.

"We want to basically just tell the people: You are our partners, and you need to know that kind of information," he said.