Once again, a struggling economy has dropped state revenues through the floor, presenting California with about a $20 billion deficit for fiscal year 2010-11. But after solving a $17 billion deficit in 2008 and a $60 billion one in 2009, the governor and legislature are running out of things to cut. Gov. Arnold Schwarzenegger's office is predicting severe budget cuts in the next fiscal year to offset a $20 billion plus expected deficit. On Friday, Gov. Arnold Schwarzenegger will kick off the latest budget season with the release of the May revise, an annual event in Sacramento where the governor adjusts his January budget proposal to reflect tax receipts from April. Schwarzenegger warned in January that "tough times still lie ahead," but there was hope that the economy would rebound enough to avoid more severe cuts. It never materialized. Now, the Capitol community and anyone who relies on state services are bracing for a near-apocalyptic budget plan from the governor. And while his office isn't releasing any early details, it's not offering any reassurances either. "We had a $20 billion problem in January. The Legislature acted on about $1 billion of that problem. So, we still have a lot to solve," said gubernatorial press secretary Aaron McLear, "and it will require some really terrible cuts because the governor is not going to propose raising taxes." Schwarzenegger's budget proposal is expected to include monumental cuts to social programs and other state services, but it is only a proposal. The legislature is ultimately tasked with writing the budget the governor merely has the power to veto all or part of it. State braces for 'really terrible' budget cuts | budget, governor, legislature - News - The Orange County Register And they are in a frenzy to boycott AZ??? If AZ wanted to, THEY could sink CA in a flat second!