Schwarzenegger to unveil new state budget

SACRAMENTO, Calif.

His spokesman says it contains some ugly cuts to state spending. The latest deficit emerged just a month after the governor signed this year's budget. He called lawmakers into an emergency budget session this week in the hopes of hammering out an agreement before he leaves office at the end of the year.

Meanwhile, Governor-elect Jerry Brown is inviting lawmakers to meet with finance officials, on Wednesday. They will be discussing an even bigger $19 billion deficit projected for next year.

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