California is facing a $20 billion deficit. Governor Arnold Schwarzenegger just proposed massive spending cuts, and outright elimination of long-standing government agencies.

From the LA Times, Jan. 8:

The Republican governor will renew his call to expand oil drilling off the Santa Barbara coast and extend the payroll cuts that have resulted in furloughs and a 14% salary cut for more than 200,000 state workers... and extend the payroll cuts that have resulted in furloughs and a 14% salary cut for more than 200,000 state workers... he will propose the wholesale elimination of CalWorks, the state's main welfare program, as well as a program that provides in-home care to the elderly and disabled.

But the Governor doesn't stop there:

"As bitter as the words are in my mouth, we face additional cuts," Schwarzenegger said in his State of the State speech before lawmakers Wednesday.

The Legislative Analysis Office (LAO) just released a report. Although they acknowledged dramatic actions needed to be taken, the LAO dubbed Schwarzenegger's cuts "draconian."

Meanwhile California's Capitol blog is reporting that the LAO is now saying that the budget includes $2.4 billion reductions for public schools despite the Governor's claim to protect the education budget from any cuts.

Reaction from California Liberals has been severe.

Democrat Assembly candidate Das Williams issued a release calling the cuts "devastating," and claiming: "Californians have been suffering from two years of nonstop budget cuts and one-sided sacrifices. More pain for children, seniors, the disabled, and our low-income citizens."

UC News called it: "bad news for state workers, health and social services and prisons..."

Democrat Assemblywoman Noreen Evans of Santa Rosa, Chair of the Budget Committee is accusing Schwarzenegger of wanting to "privatize the prisons," and has called his budget cuts "radical." (Source: Petaluma Press-Dem)