California Briefing

Gov. Arnold Schwarzenegger on Tuesday predicted a new round of budget cuts as the state's finances remain shaky despite large spending reductions made by the governor and lawmakers in July. At a news conference and at the Fresno Bee's editorial board Monday, Schwarzenegger said the current fiscal year's budget is $5 billion to $7 billion in the red, on top of the $7.4-billion deficit projected by his aides for the fiscal year that will begin in July. The governor said he would reveal his specific plans to deal with the problems in January.