Schwarzenegger releasing his final budget this morning - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Schwarzenegger releasing his final budget this morning

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SACRAMENTO, Calif. (AP) — Gov. Arnold Schwarzenegger releases his final budget blueprint this morning (11:30 a.m.) amid another multibillion dollar shortfall that promises to dominate California politics in 2010.

The lame duck Republican governor previewed parts of his budget proposal during his State of the State address earlier this week. He pledged to protect California's public schools while demanding a better return on federal funding for health care and incarcerating illegal immigrants.

He is expected to propose more spending cuts, requests for billions of dollars in additional federal aid and tax changes to address a shortfall projected at $20 billion through June 2011.

The governor will likely declare an emergency session of the Legislature to tackle the current-year deficit approaching $7 billion, largely because earlier budget solutions failed, including the sale of a portion of its workers compensation insurance business for $1 billion and making prison and health care cuts.

For the remaining $13.3 billion gap in the fiscal year that begins July 1, the governor is expected to ask state workers to take a pay cut and contribute more into their health care and pension benefits among other moneysaving moves.

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