Schwarzenegger threatens to lay off 5,000 workers

Gov. Arnold Schwarzenegger, facing a California budget deficit that already exceeds $15 billion and could grow dramatically if a passel of key initiatives are rejected by California voters next week, said Thursday that his administration will start sending pink slips to 5,000 state workers on May 15.

???I understand that these cuts are very painful and they affect real lives,??? Schwarzenegger said during a May 14 news conference, according to an Associated Press story. ???This is the harsh reality and the reality that we face. Sacramento is not Washington ??? we cannot print our own money. We can only spend what we have.???

California???s budget has been battered by a steep recession-driven drop in tax revenue.

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According to AP, it faces a ready-made deficit of $15.4 billion for the fiscal year starting July 1, which could jump to more than $21 billion if voters reject propositions 1A through 1E in next week???s special election.

Critics accuse Schwarzenegger of hyping the state???s financial crisis to boost the chances of the ballot propositions, which are faring poorly in recent polls. The propositions would allow the state to raise and/or save money through various initiatives.

But the governor says he???s just telling it like it is ??? if the propositions go down to defeat, California???s budget hole will grow deeper and more difficult to climb out of.