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"...We have cut down the structural deficit by 75 percent. It was expected to be $16.5 billion. We're now at $4.7 billion. That is great progress . . . no matter what anyone says."

Schwarzenegger thus exposed to a national audience a bit of political propaganda that he and his aides have been peddling in California...

Were it true, it would mean that Schwarzenegger was fulfilling the promise he made...

Unfortunately for him and the state, however, data that the administration uses to support its claim of looming solvency undermine the contention.

More "truth twisting," as usual.

One has to go back a couple of years to put the claim in context. Donna Arduin stunned Sacramento when she declared that the state had run up $25 billion in debt from three years of deficit spending, and projected that left unchecked, the cumulative deficit would reach $62 billion by June 30, 2007, including a $16.6 billion gap during the 2006-07 fiscal year.

The latter is the number that the administration has been citing of late.... She assumed that during 2006-07, state general fund spending would reach $99.8 billion but revenues would be just $83.2 billion, leaving a $16.6 billion shortfall.

Here's the way the numbers work out mentioned in the article. Revenues have increased, largely due to temporary income. And spending is only $2 billion less than the bloated forecast Arduin and Co. developed for the 2006-07 Budget year:

                   Arduin     Gov Budget  Legislature
                   ------     ----------  -----------
Revenue            $83.2       $92.0        $93.0
Spending            99.8        97.9         97.9
                   -----       -----        -----
Shortfall/deficit  (16.6)       (5.9)        (4.9)

These are the numbers Arnold quotes--what a classic sham job. Understate projected revenues and overstate spending obligations (Arduin did her job well--and then split town). It lowers the bar of expectation, making the leader's job easier and allows for a future performance to articifically appear positive. In fact, general fund spending has increased 37% under Arnold. I guess he doesn't want to tout that fact.