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Gov. Arnold Schwarzenegger is running out of good things to say about California. As he prepares to give his annual State of the State address today, he faces a $40 billion budget deficit, rising unemployment, sinking approval ratings and demands from activists who want to protect their programs from budget cuts.
Assembly Speaker Karen Bass used hers to fund voter registration efforts to elect more Democrats. Former Senate President Pro Tem Don Perata used his to bolster his legal defense fund. Gov. Arnold Schwarzenegger used his to pay for his political operation for the last two years.
The University of California regents voted Wednesday to cut freshman enrollment by 6 percent, slashing 2,300 spots as the UC system grapples with expected cuts in state funding.
The state's nonpartisan Legislative Analyst's Office confirmed Wednesday that California could run short of cash as soon as Feb. 1 unless lawmakers and Gov. Arnold Schwarzenegger immediately cut spending and raise revenues.

The complete prepared text of Gov. Arnold Schwarzenegger's State of the State address is after the jump: His 2008 address, as prepared, clocked in at 3,026 words. This year's speech ...
 

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