CALIFORNIA - California Gov. Arnold Schwarzenegger (R) wants to proceed with massive public works projects designed to build high-speed rail and improve water infrastructure in his state despite an economic crisis and a $15 billion budget deficit.

In comments delivered to the Commonwealth Club here, Schwarzenegger said Friday it would be a mistake to "hold back" on high-speed rail in particular because of the state's fiscal problems, which resulted in a stalemate over the budget this year before the impasse was settled last week.

Voters will have the chance this November to decide for themselves whether Schwarzenegger is right. On the general election ballot is a proposition that would get the ball rolling on a $40 billion north-to-south rail project with an initial investment of nearly $10 billion in bonds.

The state's celebrity governor urged voters to say "yes" on the rail bond. He argued that the rail system in the West, which is more than 100 years old in many areas, is in dire need of modernization to keep up with the rest of the world.

"Just because we had a problem with the budget does not mean people should vote 'no' on high-speed rail," Schwarzenegger said.

Proposition 1A, the "Safe, Reliable High-Speed Passenger Train Bond Act," would authorize $9.95 billion in bonds to buy property rights and lay the groundwork for a 700-mile rail link to connect Los Angeles and the Bay Area. The total cost is expected to eclipse $40 billion, much of it funded by private investors.