Well, Governor Schwarzenegger has begun cutting into social programs as predicted. AP is reporting

To make up for $4 billion lost when he cut the unpopular car tax, the governor will make a $40 million payment to local governments to keep them from closing facilities and laying off police officers and fire fighters, aides said Wednesday, speaking on condition of anonymity.

Schwarzenegger will get that money and future payments by making $150 million in cuts that will fall heavily on public health and welfare programs, the sources said.

A statement from the governor’s office late Wednesday said only that Schwarzenegger would have a news conference Thursday to discuss funding for local governments.

Since Schwarzenegger cut the tax as his first official act as governor last month, local officials have said they are losing millions of dollars every day. Many have threatened to sue the state if something isn’t done quickly to restore the funds.

The crisis is real, but the legislature is not going to stand for him balancing the budget on the backs of those who desperately need social services.

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