Arnold predicts $10 billion shortfall

Gov. Arnold Schwarzenegger predicted Thursday that California would face a budget deficit of more than $10 billion in the fiscal year that starts July 1. AP in Daily News.

"This is why we have to make all kinds of cuts across the board," he told a group of prosecutors and criminal investigators at a conference near the Capitol.

"I hate making those kinds of cuts, but we have no more money," he added later in comments to reporters. "We have to live within our means. We are out of whack every one of the next few years by $10 (billion) to $12 billion. You cannot tax your way out of that."