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SCHWARZENEGGER SETBACK EXPECTED ON BUDGET

California voters were on Tuesday expected to reject a series of special ballot measures aimed at addressing a widening state budget deficit, in a blow to Arnold Schwarzenegger, the state's governor.

California would be the world's eighth-largest economy if it were a separate country, but the state has been rocked by the recession and a record budget deficit that has threatened essential public services.

Mr Schwarzenegger has been urging voters to support new revenue-raising measures that would limit the need for deep cuts in education and emergency services, and avoid the budget deficit expanding to $21bn (€15bn, £14bn).

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