Mainly, money. The Governor will start his second term in office next year facing more red ink. A new report out yesterday written by the nonpartisan Legislative Analyst's Office said California’s budget deficit will grow to $5.5 billion in the next fiscal year and another $5 billion the year after.  "Basically we're living on borrowed time," said Legislative Analyst Liz Hill. The 53-page budget forecast recommends lawmakers cut spending and increase revenues to bridge the budget gap. However, Hill’s advice may not be heeded by the Governor. During his re-election campaign, Governor Schwarzenegger repeatedly ruled out tax hikes. Schwarzenegger made that pledge during an appearance with taxpayer advocates last August. "I've said it before and I will say it again, I will not raise taxes on the people of California. Period," Schwarzenegger said. Some experts say that without tax increases being implemented, significant cuts will need to be made to the state budget to erase the red ink. Analyst Liz Hill said all options should be on the table.