I take it that the previous year budget was around $96 billion.
So the claim that this $99 billion budget include "billions in cuts" is FALSE.
he's merely stopped the shopping spree of excessive increases.
The $96B budget was what Davis proposed. The legislature passed a $98.9B budget, and Davis didn't make any significant changes before signing it.
If Schwarzenegger sticks to his $99.1B proposal by line-item-vetoing all additional spending from the legislature, the 0.2% increase would be insignificant.
The problem is that $99B is still 40% more than five years ago, and revenue growth hasn't caught up yet.