In what critics described as a plan that would drive many Californians into abject poverty, Gov. Arnold Schwarzenegger on Friday proposed a $83.4 billion budget that eliminates the nation's largest welfare program, makes deep cuts to in-home care services and shifts thousands of state prisoners to county jails.

Facing a $19.1 billion deficit, Schwarzenegger's revised budget eliminates CalWORKS, the state's welfare-to-work program that provides monthly checks to 1.4 million people, two-thirds of them children.

It also cuts $700 million from the In-Home Supportive Services program, which provides care to 400,000 low-income seniors and disabled people.

The governor's revised budget - the lowest spending level in six years - lays out the most severe cuts to health and welfare programs since the state tumbled into recession nearly three years ago. He said cuts to government services over the past few years have already done away with the "low-hanging fruit."

"We now have to use the ax to eliminate some of those programs," he said.

Tony Oliveira, president of the California State Association of Counties, said the cuts are so severe that they threaten to create a state of emergency in the state's county governments.

"If this budget becomes a reality, the devastation upon Californians will be on par with the aftereffects of a major natural disaster," Oliveira said. "Homelessness, hunger, permanent job losses, elimination of

In Los Angeles County, the CalWORKS program provides monthly welfare checks to about 415,000 people. The program provides a maximum $694 monthly cash assistance for families and helps single mothers with child care and job training.

The IHSS program serves about 180,000 seniors and disabled people in the county. The governor's proposed cuts would eliminate in-home care services to about 70,000 to 80,000 of those people.

"I find it absolutely amazing that the most vulnerable would be subject to the largest cut in the state," county Chief Executive Officer Bill Fujioka said. "This is only going to add to the serious financial problems the county has because the individuals on CalWORKS will move right into a lot of our programs and services funded through our general fund."

The governor announced his revised budget plan for the fiscal year that begins in July as the state's 12.6 percent unemployment rate ranks among the highest in the nation and tax revenue remains low. In April, personal income tax was $3 billion less than projected, which wiped away earlier revenue gains.

The governor and Republican lawmakers have vowed not to raise taxes, as the Legislature did last year, ensuring that spending cuts will be the main solution. That could leave single mothers, foster youth, children from low-income families, the disabled and seniors who rely on state services feeling most of the pain from the recession's continued effects on California government.

But Democratic leaders said they will not allow programs for the needy to be gutted. They pledged to find a way to maintain core health and social programs, such as in-home care for seniors and welfare assistance for single mothers.

It's not clear how those programs will be sustained at current levels without a tax increase, which Schwarzenegger opposes, or even more money from the federal government. Democrats want to close tax credits and loopholes, noting that the state allows $50 billion worth of tax deductions.

"We will not pass a budget that eliminates CalWORKS. We will not be party to devastating families," said Senate President Pro Tem Darrell Steinberg, D-Sacramento. "What kind of civilized society maintains business tax breaks and eliminates child care? That's not the California I take pride in living in."

Assemblyman Bob Blumenfield, D-Van Nuys, said the governor's proposed cuts are irresponsible and not financially prudent or smart because the CalWORKS and IHSS cuts will result in the state losing $3.7 billion in federal funds. Blumenfield said the $2.3 billion in CalWORKS and IHSS cuts equal the amount of corporate tax cuts the governor approved last year.

"It really does set up a stark contrast," said Blumenfield, chair of the Assembly Budget Committee. "It's an interesting comparison to say if we didn't do those tax breaks, if all tightened our belts, we wouldn't have to make these cuts."

State Sen. George Runner, R-Lancaster, said the governor made similar proposals in January and the Legislature has continued to "act like nothing is wrong."

"I don't know what else there is to negotiate," Runner said. "We are truly getting down to what are minimum levels of government that we can afford when revenues are down this dramatically. We need to figure out how to get Californians back to work and paying taxes so these programs can be real and vital."

Los Angeles County Supervisor Michael D. Antonovich said the governor's proposal to release thousands of state felons to serve their sentences of three years or less in county jails threatens public safety.

Describing it as a "dream come true for the ACLU," Antonovich said the governor's plan reimburses counties for less than 50 percent of the jail housing costs.

As a result of the state's excessive taxes and "anti-job" atmosphere, Antonovich said more than 100 major businesses have left California in recent years.

"The governor and Legislature need to review the compensation packages of employees, their work rules, consolidate and eliminate unnecessary agencies and the cut the fat out of the state budget," Antonovich said. "Don't penalize local cities, counties and schools with these types of irresponsible actions."