This is the Cato Daily Podcast for Wednesday, May 14th, 2008. I'm Caleb Brown.

Arnold Schwarzenegger wrote into the Governor's Mansion on a pledge to cut government, so how's he done and what's

the budget picture look like for California today?

Cato Institute Budget Policy analyst Elizabeth Karas Mean offers a few bits of advice to the governor.

What is the California record on spending and taxes since Schwarzenegger has been in office?

Since Schwarzenegger has taken office in 2003,

total state spending has increased% from $145 billion in

245 billion in 2008 from $104 billion in 2004. This is reminiscent of the massive

spending increases in the 1990s which swelled the general budget 86% between 1994 and 2000.

I would say that Schwarzenegger has a lot of current against him,

but his budgets have been increasing spending. He's been a major proponent of new large

government spending programs, including his Universal Health Care Program, which he's again

pushing this year. He has also been a major

proponent of increased environmental spending which is not only putting increased

pressure on the state budget but is also fueling growing debt in the state

and is also removing California's state government farther from their core functions.

So what is the what is the situation that California faces right now?

Right now, Governor Schwarzenegger is preparing to release his revised budget.

In January, he released his preliminary budget. his between their projected revenue and projected spending.

Right now he is looking at upwards of $10 billion,

possibly as high as $20 billion,

as he mentioned last week. He's looking at a major debt major gap between

...