The 125-billion dollar proposed budget reflects more than four-billion in increases for K-through-12 education, a rollback of previously scheduled fee hikes for U-C and Cal State universities, and new money to provide public health insurance to low-income children. But Schwarzenegger noted this is the very beginning of the budget process. 

 “We’re all going to sit down and debate over it…” 

Democratic lawmakers say they’re ready to talk about --and fight for--  some programs slated for cuts… They say they won’t agree to slash programs that assist families going from welfare-to-work.  Schwarzenegger was quick to defend the decision. 

“We’re not picking on anyone. It’s all balancing, it’s like you have a scale.”

Some Republican lawmakers say the Governor’s proposal spends too much money and note the state still faces a deficit next year. They say more progress is needed to eliminate the imbalance.