SACRAMENTO – Gov. Arnold Schwarzenegger continues to wheel and deal in preparation for the unveiling Thursday of his revised budget plan.

On Tuesday, he formally announced $600 million in one-time cuts to the university system - in exchange for budget increases through 2011.

Today he will announce $2.6 billion in cuts to local governments next year - also in exchange for future financial stability.

Other deals he's reached to rein in a budget that is $17 billion out of whack include a $2 billion cut to K-14 education - again with the promise of future increases in funding. And Orange County leaders expect a restoration of most transportation funds Schwarzenegger proposed cutting in January - including money to widen the Garden Grove (22) Freeway.

Such buildup is typical for governors seeking to spotlight the positive in their budgets.

But the deals were negotiated without the Legislature - which ultimately has to OK the budget - and it is unclear whether the same power Schwarzenegger used to ram through the workers' compensation agreement and $15 billion in borrowing will be enough this time.