Gov. presents budget

"Tough times still lie ahead," says Gov. Arnold Schwarzenegger as he announces $8.5 billion in spending cuts, much of it centered on social service programs and prisons. He's also proposing to end unpaid furloughs of state workers, but the bad news is he wants to replace them with permanent pay cuts averaging 10 percent. "There is no way to avoid more cuts," he says. No tax increase.

You can catch him right now over at the California Channel.

Edited post