Sacramento -- The state Senate on Thursday sent Gov. Arnold Schwarzenegger about half of the midyear budget savings he had requested in December.

The Senate approved about $1 billion in cuts and fund shifts for the current fiscal year. Schwarzenegger had asked for about $2 billion in cuts.

"This is a good first step," said Sen. Wes Chesbro, D-Arcata, the Budget Committee chairman. "As we go through the process, we will find more ways of making cuts."

H.D. Palmer, a spokesman for the Department of Finance, said the state had lost $156 million in savings because lawmakers did not approve all of the cuts proposed by Schwarzenegger. The governor is expected to sign the bills within the next two weeks.

One bill approved 34-1 authorized about $145 million in fund shifts. Sen. Sam Aanestad, R-Grass Valley (Nevada County), voted against the measure because it took $105 million from flood control projects.

Other savings include suspension of the natural heritage tax credit, which provides tax breaks in exchange for donation of qualified land and waters for preservation. That saves $8.7 million.

A second bill, approved 30-1, revised downward the amount of money owed to cities and counties when the vehicle license fee was reduced. The money will be paid back in the 2006-07 budget year.