Terminating Welfare in California?

It's probably just a insincere negotiating ploy, but Governor Schwarzenegger has proposed to eliminate a major welfare program in California. This article from the Sacramento Bee notes that the Governator also wants to cut bureaucrat pay and impose other reforms. Given Schwarzenegger's failure to consistently fight against special interests in previous years, and given the overwhelmingly statist orientation of the California state legislature, I am not overly optimistic that any of these reforms will occur, but it's nice to at least have real reforms being discussed:

Gov. Arnold Schwarzenegger asked lawmakers Friday to eliminate the state's welfare program starting in October and dramatically scale back in-home care for the elderly and disabled as part of his May budget revision to close a $19.1 billion deficit.The Republican governor also proposed cuts to state worker compensation. Besides asking for a 5 percent pay cut, 5 percent payroll cap and 5 percent increased pension contribution, Schwarzenegger has proposed cutting one day per month of pay in exchange for leave credit....Employees would not be able to cash out any of this unused leave credit when they leave state service. ...Schwarzenegger also proposed eliminating state-subsidized child care for all but preschoolers as a way to reduce the state's education funding guarantee. ...He did not respond directly when asked if his proposal to eliminate welfare was merely a negotiating position with the Democrat-dominated Legislature.Schwarzenegger also said he would not sign a budget plan unless lawmakers agree to overhaul the budget process, including creation of a "rainy-day fund" and downsizing public employee pensions for new hires.The governor did not propose any new tax hikes.