Governor Schwarzenegger unveils his revised budget proposal today in Sacramento. KPCC's Julie Small already has seen portions that were leaked.
Governor Schwarzenegger wants to borrow $15 billion from Wall Street by promising future sales of California's lottery to investors. California would collect the money over three years, so only 5 billion would be available next year to cover what's now projected to be a $15 billion deficit.
Schwarzenegger's proposing 6 billion in cuts to help make up the rest of the shortfall. While the governor's abandoned some proposals, such as shutting state parks, cutting billions from K-12 education, and releasing thousands of inmates from prison early, cuts to health care and welfare remain.
Because the lottery was approved by initiative, voters would have to approve sale of future proceeds. If they don't, the governor wants to raise the sales tax by 1%. The state estimates that would generate $6 billion more each year.