Gov. Arnold Schwarzenegger signed a package of budget bills Tuesday he said contained "the good, the bad and the ugly," including no new tax increases and deep cuts in education and health care.
He said he was forced to make additional cuts in parks and child welfare services because lawmakers sent him a package that was $156 million in the red.
"We are not out of the troubled waters yet," he said."We are ready if our revenues drop further to make the necessary cuts to again live within our means."
Line items totaled $656 million, including cuts in the Office of Aids Prevention and Treatment.
Senate President Pro Tem Darrell Steinberg, D-Sacramento, questioned Schwarzenegger's legal authority to veto some of the money.
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