Gov. Arnold Schwarzenegger will present the final budget of his governorship later this morning, calling for deep cuts to public transit, healthcare and social services, as well as pleading for billions of dollars in help from Washington to close California's roughly $20-billion deficit.

The Republican governor will renew his call to expand oil drilling off the Santa Barbara coast and extend the payroll cuts that have resulted in furloughs and a 14% salary cut for more than 200,000 state workers.

Mostly, Schwarzenegger will deliver bad news as cash-strapped California continues to muddle through the economic downturn, despite raising taxes and cutting back services severely in 2009.

"As bitter as the words are in my mouth, we face additional cuts," Schwarzenegger said in his State of the State speech before lawmakers Wednesday. "We know what that means. We know the pain it entails. I mean, what can we say at this point except the truth, that we have no choice?"