That's true. Maybe a ballot initiative for next year saying that once you reach 55 you must die or move to Nevada, whichever is least painful.
If you want to start playing Master of the Budget and figure out where you'd cut 10+ billion in spending start drilling down
here. That is, I believe, the budget from earlier this year and not reflecting new proposals from the failure of the props in the recent election.
One thing that Arnie could do unilaterally to save some significant money would be to grant pardons to all non-violent drug offenders currently incarcerated in California prisons. It would be political suicide, especially once one of those people killed or raped someone, of a spectacular nature. But he'd have my support (even once one of those peole killed or raped someone).