Just a week away from his inauguration as California governor, Arnold Schwarzenegger will present proposals to shave 3.8 billion dollars off social programs over the next 19 months.

The "Terminator" star, seeking to turn around California's giant deficit, would affect funding for therapy for the handicapped, and for pensioners, as well as plans to ease traffic in California, and university training programs.

With his proposal to California's Congress, Republican Schwarzenegger seeks to cut half the sum -- 1.9 billion dollars -- from this year's budget, and the other half from the 2004-2005 budget.

"I wouldn't expect that this proposal will be passed without changes," said Elizabeth Garrett of the University of Southern California. "He needs a majority of two-thirds -- a super majority vote" -- a tall order since both houses have a majority of Democrats, she said.

Many Democratic lawmakers have protested the measure, saying its sole goal is to compensate for the huge monetary losses that come with last week's decision to revoke an unpopular vehicle tax increase.

Democrats said the measure would add another 7.8 billion dollars to the deficit through fiscal 2005 -- with 3.6 billion lost this year, and 4.2 billion in 2004-05.

The new California governor -- who replaces outgoing Governor Gray Davis in the wake of an unusual recall vote -- is due to present his budget for next year on January 10.

Ten days ago, Donna Arduin, appointed financial director for the Schwarzenegger administration, warned that he inherits a deficit of 24.8 billion dollars through fiscal 2006-07.

Of that figure, 10.6 billion dollars comes from the fiscal 2002-03 budget. Including funding deficit from the vehicle tax status change, experts estimate the budget shortfall until the start of fiscal 2005 at 18.4 billion dollars.

Copyright 2003 AFP

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