California In his State of the State address earlier this month, California Governor Arnold Schwarzenegger outlined his plans for closing the state's $14.5 billion budget gap. As the California Budget Project's summary shows, his plans consist principally of slashing spending on a wide array of public services. Indeed, the Governor maintains that his budget plans would address the shortfall without raising taxes, an approach that has rightly been criticized by numerous observers, including the state's independent Legislative Analyst, Elizabeth Hill.