LOS ANGELES, Jan. 9 -- California Gov. Arnold Schwarzenegger (R) announced billions of dollars in budget cuts and fee increases Friday, detailing for the first time the "painful" steps he said are essential to solving the state's massive fiscal crisis.

"Everyone has to make sacrifices," Schwarzenegger said as he unveiled his first budget. "This is the only way we can do it because we don't have the money."

The newly elected governor, who has mostly dodged questions about making budget cuts since he began campaigning last fall, is proposing reductions in health and welfare programs and wants to raise tuition for some college students. Cities and counties would lose more than $1 billion.

His $99.1 billion budget also calls for eliminating $2 billion in promised aid to public schools, increasing fees at state parks, delaying transportation projects and demanding more revenue from Indian tribes that operate casinos in California.

Schwarzenegger said that all of those steps are necessary because the state is facing a deficit in excess of $14 billion for the fiscal year that begins in July -- and he does not want to attempt to fix the problem with any tax increase.

"Higher taxes will punish working families," he said. "It will kill jobs and drive businesses away."

To get this budget passed, Schwarzenegger will need a two-thirds vote of support from a legislature that is dominated by Democrats and already voicing serious concern about key parts of his plan. Some Democratic lawmakers are vowing to fight his proposed cuts to programs that serve poor and middle-income families unless Schwarzenegger also forces California's wealthiest residents to share the burdens of the budget shortfall.

"We believe this budget needs a lot of work," said Assembly Speaker-elect Fabian Núñez (D-Los Angeles). "The pain is not distributed."

City and county leaders also are objecting to Schwarzenegger's proposal to take $1.3 billion in local property tax revenue and use it to plug holes in the state budget. Local officials say the loss of that money would be devastating because they use most of it for spending on public safety.

Los Angeles Mayor James K. Hahn (D) said Friday that if the legislature approves Schwarzenegger's request, the city would lose at least $45 million and could be forced to fire police officers and firefighters. "To say that I'm disappointed would be an understatement," Hahn said.

The fight over the budget could last months, and it is not Schwarzenegger's only urgent financial problem. He also has to persuade voters to support a measure on the March ballot that would allow California to erase the deficits it has in its current fiscal year with nearly $15 billion in borrowing. Earlier this week, he said that if the ballot measure fails, California could face the "chaos" of bankruptcy.

Schwarzenegger described his budget plan as a tough but fair response to the huge deficit that would force state agencies and local governments to be more creative and efficient with money. One of his proposals would freeze enrollment in the state program that provides poor children with health care. Another would require community college students to pay $8 more per credit hour for their classes.

"Over the past five years, the politicians have made a mess of the California budget. Now it's time to clean it up," Schwarzenegger said. "In the last two budgets, the easy choices were made."

But he is relying on some of the same budget tactics as his predecessor, Democrat Gray Davis, by advocating borrowing and asking tribal casinos to give the state more money. Schwarzenegger also is counting on the improving economy to bring the state more cash than it had anticipated. State finance officials say that in the past six months revenue collections have exceeded last year's budget projections by more than $1 billion.

Schwarzenegger said while he does not know "how many cigars I need to smoke" to win Democratic support for his budget plan, he is confident it will be approved. In his short time in office, he has made a habit of courting Democratic leaders and interest groups.

On Thursday, he stood with leaders of the California Teachers Association, a powerful ally of Democrats, and announced a compromise deal that would increase spending on public schools in his budget but delay giving them $2 billion they are owed in the next fiscal year because of a voter-approved ballot initiative. "The way he involved us in this budget proposal is a first," said Barbara E. Kerr, the teachers union president.

Even as he delivered the bad budget news, Schwarzenegger struck an exuberant pose at times and said that he relishes the budget debates ahead. At one point, after pointing to a chart that showed rising state expenses, he turned to news photographers and asked, "Did you all get a good shot of me with the graphs?"