California Governor Arnold Schwarzenegger's, as part of his proposed solution to the California state budget crisis, vetoed $1.3 billion in total spending.
- $957.2 million from the Governor's line-item veto on General Fund expenditures
- $255 million each in funding for the UC and CSU systems. These amounts will be replaces by an equivalent amount from economic recovery funds.
- Smaller budgets for the Controller, Lieutenant Governor, Attorney General, Department of Justice, Secretary of State, Treasurer, Department of Insurance, Department of Education, and the Board of Equalization.
- A $400 million unallocated reduction from the budget of the Department of Corrections and Rehabilitation. Budget documents state that these reductions would be "achieved as a result of various reforms and actions" implemented by the Agency Secretary.
- $275 million from the Department of transportation to reflect a last minute change to the spending plan that eliminated the proposed 12-cent-per-gallon increase in gasoline and diesel fuel taxes.