School Gate: Arnold Schwarzenegger, Man of Vision?

Californian schoolkids have been told to throw away their textbooks to help the state avoid bankruptcy.

But they won't need total recall: they're going digital instead.

The textbooks have been terminated by Arnold Schwarzenegger, the bodybuilding state governor who says they are "outdated" and too expensive.

Mr Schwarzenegger announced the ban on textbooks in a classroom in Sacramento, holding up four large text books and joking: "I can use these for the (bicep) curls."

He said that children would easily adapt and denied that the would be getting a raw deal.

"Textbooks are outdated, in my opinion," he said. "For so many years, we've been trying to teach the kids exactly the same way.

"Our kids get their information from the internet, downloaded onto their iPods, and in Twitter feeds to their cell phones... Basically. kids are feeling as comfortable with their electronic devices as I was with my pencils and crayons.

"So why are California's school students still forced to lug around antiquated, heavy, expensive textbooks?"

California is the first American state to embrace digital textbooks and the rise of the machines, which Mr Schwarzenegger says could save hundreds of millions of dollars. State officials say the average textbook costs $75 to $100 - far more than its digital equivalent.

With California fast running out of cash in the face of a $24 billion budget deficit, Mr Schwarzenegger has frozen all state contracts on goods and services signed since March 1.

The move affects not just school supplies but spending on office space, lawyers, consultants, fuel and computer software. It is designed to slash the state's annual $9 billion bill for goods and services by $1.35 billion. Only contracts involving public safety and projects funded by bonds or by the federal government are exempt from the clampdown.

The state’s revenues have plummeted during the economic recession, forcing officials to consider drastic spending cuts to balance the state’s books, said Amanda Fulkerson, a spokeswoman for California’s State and Consumer Services Agency, which oversees the state’s contracting and purchases.

"We have to look across the board for savings," she said. "The state controller has been very honest with us in talking about the state running out of cash in two weeks."

Mr Schwarzenegger has ruled out tax increases to make up the shortfall. He said in a statement that he would concentrate on getting better value for money for the state, reconsidering everyday purchases just as ordinary families were having to do during the recession.

"With today’s action, every state agency and department will scrutinize how every penny is spent on contracts to make sure the state is getting the best deal for every taxpayer dollar," he said.

Every spending department has also been ordered to submit plans to the Department of Finance to prune at least 15 per cent from their contracts and purchases.

"Regardless of the fiscal situation, they need to dial back," said Aaron McLear, Mr Schwarzenegger's spokesman. "From our standpoint, every California household and business is cutting spending as much as possible. We need to do the same in state government."

Further spending cuts are expected before July 1, the start of the state’s next fiscal year.

There is rising concern on Wall Street at the dire state of California's finances. It already has the lowest general obligation debt rating of any US state, and last month Fitch Ratings warned it may lower California’s ’A’ long-term general obligation debt rating, which would push up the state’s borrowing costs.

Fitch revised its rating outlook on California from stable to negative, noting concerns about the state’s budget gap and its dwindling cash.

"It’s a reflection of the difficulty the state is in," said Emily Raimes, a senior at Moody’s Investors Service.

"At this point everyone is anticipating big cuts. It’s just a matter of what the legislature can agree to cut and by how much."

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