Schwarzenegger to propose lottery borrowing to ease deficit

Gov. Arnold Schwarzenegger will propose borrowing against state lottery income to help close a projected $15.2 billion deficit when he updates the state's budget today, according to administration officials.

Backpedaling from his earlier plan, the Republican governor will not seek to close 48 state parks, ask for early release of 22,000 inmates or give schools less money than they are guaranteed by the state constitution.

Advocates who were briefed on the governor's plans late Tuesday, however, said most of Schwarzenegger's proposed cuts to health and welfare services will remain in a $101.8 billion spending plan for the fiscal year that begins July 1.

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