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Gov. Arnold Schwarzenegger blasted members of the state Assembly Wednesday for lacking "the guts" to enact sweeping changes to California sentencing laws. The Republican governor said lawmakers were willing to cut $10 billion from education, but are reluctant to trim just $1.2 billion from prisons.

One issue that has resurfaced during the recent economic downturn and budget crisis in California is illegal immigration. California lawmakers are struggling with a budget gap of $26.3 billion and many taxpayers have started questioning the cost to the state of illegal immigrants.

Gov. Arnold Schwarzenegger and lawmakers failed to reach final agreement on ways to solve the state's water problems Sunday,