(2003-11-19) -- Gov. Arnold Schwarzenegger today went online to apply for a $15 billion debt consolidation loan for California from Ditech.com.

"I have heard that you can borrow up to 125 percent of the value of your property," said the new Governor, "We'll combine all of our monthly bills into one easy payment."

Mr. Schwarzenegger said that California would then go on a strict budget, setting up a system of manila envelopes for each category of expenditure -- public schools, highways, police.

"When we get money, we put it in the envelopes," he said. "When an envelope is empty, we can't have any more of that service until we get more money in the envelope."

The Governor also said he would cut up the state's credit cards.