Reporting from Sacramento -- Gov. Arnold Schwarzenegger will line-item veto hundreds of millions of dollars in state spending this morning as he signs a budget package aimed at bringing California's deficit-riddled books into balance. State lawmakers passed the spending package after an all-night session last week. They made deep cuts across all state services, especially in the biggest areas -- education, healthcare, prisons -- and also relied on billions of dollars in accounting maneuvers and borrowing. Read More »