And in the state prison system, Schwarzenegger banks on saving $182 million by commuting the sentences of 8,500 of the 19,000 illegal immigrant felons and turning them over to federal authorities for deportation.
But prison and finance officials say the governor can unilaterally commute only the sentences of those convicted of a single felony -- about 3,000 inmates. Under state law, commutation for the rest would require permission from four justices of the California Supreme Court.
Lawmakers agreed to the plan but said they might change some details. The legislative analyst's office said the state should count on saving only $50 million this way, less than a third of what Schwarzenegger and lawmakers want.
Legal challenges
Other proposals are likely to be tied up in court.
Schwarzenegger wants -- and the Democrats have accepted -- a $1-billion raid on local gasoline taxes earmarked for transportation projects. Municipal governments have reacted with howls of protest, and the governing board of the League of California Cities voted unanimously Monday to move forward with a lawsuit.
The group's executive director, Chris McKenzie, said lawmakers and the governor are "holding their breath" in hope that such a move is constitutional.
In April, local redevelopment agencies won a lawsuit against the state over its $350-million raid on their coffers last year. But Democrats have put another attempt to siphon the funds into their latest budget plan, rewriting it in a bid to appease the courts.
The redevelopment agencies have vowed to sue again.
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shane.goldmacher@latimes.com
Times staff writers Marc Lifsher and Michael Rothfeld contributed to this report.
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BEGIN TEXT OF INFOBOX
Shifts in accounting
Some of the proposals lawmakers plan to vote on today amount to bookkeeping maneuvers. Some examples, with dollar amounts and who is proposing them:
* Require independent contractors to pay some taxes early: $2 billion (Democrats).
* Raise income tax withholding at workplaces by 10%, to be repaid later: $1.7 billion (governor and Democrats).
* Defer some schools' payments until fiscal 2010-11: $1.7 billion (governor and Democrats).
* Issue next June's paychecks for state workers on July 1, 2010, pushing the expense into the next budget year: $1.2 billion (Democrats).
* Increase estimated tax payments for businesses and the self-employed early next year: $610 million (governor and Democrats).
Sources: California Legislature, California Department of Finance, Times reporting
