From the AP via the Houston Chronicle:
Gov. Arnold Schwarzenegger is seeking the deepest cuts to California's health and welfare programs since the state tumbled into recession nearly three years ago.
The Republican governor announced his revised budget plan Friday for the fiscal year beginning in July, with unemployment in the state remaining high and tax revenue low.
General fund spending will be $83.4 billion for the new fiscal year, the lowest level in six years. The administration projects the state is facing a $19.1 billion deficit, more than 20 percent of all planned spending.
Among the options Schwarzenegger laid out is eliminating CalWORKS, the state's welfare-to-work program. He said cuts over the past few years have done away with the "low-hanging fruit" in state government.
He says, "We now have to use the ax."
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.