While everyone was smiling for the cameras at the budget signing in the Rotunda this morning, down the hall in Governor Schwarzenegger's Department of Finance was where reporters could find the other side of the story: a 31 page list of line-item vetoes.

Schwarzenegger decided to cross out more of this year's budget spending than he did last year with his blue pencil: $190 million in overall cuts compared to $115.6 million last year.

The following are some highlights... or, depending on your political persuasion, lowlights:

* $20 million cut out of the $50 million earmarked for local agencies and mitigation of Indian gaming. Schwarzenegger's veto said that local officials haven't provided enough detail to justify the additional spending.

* $1.226 million which would have created a new program at the Franchise Tax Board designed to crack down on tax cheats. The governor thinks Democrats have overestimated how much money this program would bring in, and wrote that it "might result in charges against persons who innocently failed to recognize that they had taxable income."

* A $3 million cut that effectively will end the IMPACT program, a one-time pilot program for prostate cancer patients.

* Cutting $3 million of the $5.2 million budget for the California National Guard, with budget staffers saying it will be up to a new permanent Adjutant General (once selected) to assess funding needs next year.