The Governator has spoken, and, if Californians think Arnold Schwarzenegger’s dramatic tone is just a habit from his Tinseltown years, they will shortly be disabused of that notion. Three weeks after just 28 per cent of voters turned out to reject revenue and borrowing initiatives by a two-thirds majority, the other side of the ledger – spending – must be addressed, and quickly. The public may notice tens of thousands of released prisoners, the closure of local parks and community colleges, 1m-plus poor people losing subsistence benefits or 440,000 of their housebound elderly and disabled neighbours left to fend for themselves. Breaking what may be the ultimate taboo in greener-than-thou California, oil drilling may even be allowed off its pristine coast.

While considering drastic moves, Mr Schwarzenegger is doing all the small things in his power to conserve California’s dwindling cash. But Monday’s pledge to freeze all pending contracts and “scrutinise how every penny is spent” will only go so far. Postponing a bridge repair here or furloughing a few hundred thousand workers there cannot save the $24bn or so needed to plug the actual cash funding gap in the fiscal year starting next month.

But, if voters’ lives are disrupted, and if the federal government resists the foolish proposal to backstop California’s borrowing, it may be a blessing in disguise. They might then accept tough revenue-raising measures and a loosening of paralysing shackles on taxation. These include a cap on local property taxes and a two-thirds legislative supermajority for budget measures.

Moody’s believes the state has the legal authority to issue short-term funding notes but not the ability without big funding breakthroughs. A catastrophic state bankruptcy remains a remote possibility, but Mr Schwarzenegger’s ominous message from Sacramento is no act.