Fire with fire.

Examines the budget problems in California. How the world's six-largest economy is broke; Proposals to fix the issues from Governor Arnold Schwarzenegger who has proposed a $111.7 billion budget for the 2005; Solutions to out of control spending which includes a heavy cut back in non-mandated programs, some adjustments of mandated bits and borrowing; Belief that this is a more honest budget than the state usually sees; Angry reaction from the public schools who had been promised money they will not see; Cutting of benefits for state employees; Changes in Medi-Cal which could hurt the poor; Reaction from the state's Democrats; Possibilities of some compromise on the plan.