by Calculated Risk on 2/20/2008 11:30:00 AM

From the SacBee: Governor orders cuts in state agencies now

Gov. Arnold Schwarzenegger on Tuesday ordered additional cuts across the state bureaucracy that will slow down state hiring and nonessential service contracts – a move he said could save the cash-strapped state $100 million by June 30.

The governor ordered all agency secretaries and department directors to immediately begin reducing their current budgets by 1.5 percent by cutting nonessential services and activities. ...

Schwarzenegger issued the order on the heels of a $2 billion midyear budget reduction last week to deal with the state's projected $14.5 billion deficit, which could get even larger when Legislative Analyst Elizabeth Hill releases her report today.

The governor ... has already proposed 10 percent across-the-board cuts...