"First, we have to change the structure of the state budget in order to get California out of debt and make sure it stays out of debt. That gets done with Proposition 76, the Live Within Our Means Act. Proposition 76 holds state spending down to the amount we take in and it stabilizes education funding. Voting Yes will clear a path for us to start investing in and rebuilding California next year without raising taxes."
$10B is a less than a 10% reduction in the existing budget. That reduction could be accomplished without violating the letter or spirit of Prop 98.
Also troubling is the often proposed, Schwazrenegger administration, magic elixir of reducing subsidies to local (county) government to accomplish reductions in state spending. The reciprocal of subsidy reductions, suspension of state mandates, is so obvious that an undisclosed agenda is suggested.
This repetitive pattern also presents the irony that state funds used for these "rebates" to local government are derived from local taxes, principally property taxes, which have been increasingly diverted from local government by the Schwarzenegger administration.