Gov. Arnold Schwarzenegger on Tuesday ordered additional cuts across the state bureaucracy that will slow down state hiring and nonessential service contracts - a move he said could save the cash-strapped state $100 million by June 30.

Schwarzenegger issued the order on the heels of a $2 billion midyear budget reduction to deal with the state's projected $14.5 billion deficit. The governor also urged the Democratic-led Legislature to immediately begin working on more cuts for the 2008-09 fiscal year, which begins July 1. Schwarzenegger resisted calls by Democratic leaders to balance the state's shortfall through a combination of cuts and taxes.

"Every day we wait, we're going to have to make more cuts," the governor said. "There are some people in (the Capitol) that think if they can wait and wait and push it to the end ... then that will make us raise taxes."

"But they're making a big mistake."

Schwarzenegger's executive order, which takes effect immediately, calls for each department to reduce spending by 1.5 percent between now and the end of the fiscal year.

It suggests that all agency secretaries and department directors reduce, cancel or postpone buying equipment and discourages them from conducting outreach campaigns. It also suggests that they not fill non-essential positions and that they cancel or postpone state employees' discretionary travel to conferences, seminars or training sessions.

Schwarzenegger said the cuts will apply to his office, although it may not affect his own travel expenses.

"For me, personally, I pay for a lot of it myself so I don't have to worry about those things," Schwarzenegger said. 

by Judy Lin, Sacramento Bee, February 19, 2008