Schwarzenegger to propose spending $500 million for California worker training

Schwarzenegger is set to announce the proposal this morning in his last State of the State address to lawmakers, in an attempt to stem the bleeding of jobs in a state that had a November unemployment rate of 12.3%.

The new spending to train workers is part of a five-pronged proposal Schwarzenegger is calling the California Jobs Initiative, according to a draft obtained by The Times. It includes legislative proposals to extend a tax credit for first-time home buyers, reduce sales taxes for the green technology sector, limit lawsuits against businesses and make it harder for opponents to block big construction projects by using environmental regulations.

"Improving our economy is really the only long-term solution to our budget crisis," said Allan Zaremberg, president of the California Chamber of Commerce and an ally of the governor.

He said the package "is not only going to benefit the state's revenues, but it's going to accelerate income in the private sector and improve people's quality of life."