"In the face of a $42 billion budget shortfall, and still no budget, measures are needed to preserve the State’s cash." And with that begins the official layoff letter sent out to 200,000 state workers on Tuesday, notifying them that they "face layoff, demotion in lieu of layoff, or transfer." Arnold made good on his promise to send word out of impending terminations if a budget agreement wasn't reached on Tuesday. It wasn't; he did.

In other news, Schwarzenegger just landed a cameo roll in Sylvester Stallone's "ultra-cool" homage action films, The Expendables. Way to go, Arnold! With a cast that includes Mickey Rourke, Jason Statham, Sandra Bullock, Jet Li, Dolph Lundgren, and Forest Whitaker, we smell a hit. Nice to hear things are coming up roses for someone in California.

To read the layoff notice in its entirety, follow the jump.