California voters on Tuesday rejected a series of special ballot measures aimed at curbing the state’s widening budget ­deficit, in a blow to Arnold Schwarzenegger, the state’s governor.

“I respect the will of the people who are frustrated with the dysfunction in our budget system,” Mr Schwarzenegger said in a statement from Washington, conceding defeat. “In order to prevent a fiscal disaster, Democrats and Republicans must collaborate and work together to address this shortfall.”