Gov. Schwarzenegger today proposed ending the furloughs June 30 as planned but trading them for a combination of cuts that add up to 10 percent: a permanent 5 percent pay cut and another 5 percent to be taken out for retirement benefits. The latter move would double the amount state workers contribute toward their retirement. The move means state employees would get some immediate relief -- 10 percent cut instead of the current 14.2 percent -- but could lose a small amount of their retirement income. Departments also are being asked to cut their personnel budgets by 5 percent. Sacramento Bee story here. The text (and video) of the governor's speech are here. Senate President Pro Tem Darrell Steinberg's response to the governor's speech is here.