SANTA CRUZ -- After nearly 240 Santa Cruz County educators received notices of potential layoff last week, superintendents countywide handed out another slew of pink slips Thursday, but this time they were aimed at one person: the governor.

"You're services will be terminated. Hurts doesn't it?" That was the message on a fake pink slip carrying Gov. Arnold Schwarzenegger's name, which educators and students waved while rallying on the steps of Santa Cruz High School to decry his proposed $4 billion in K-12 funding cuts.

For the first time since the governor released his bombshell budget projections in January, the county's 11 superintendents gathered to declare in unison what they've been saying individually for months: Such deep cuts will make it impossible for them to meet mandates for closing achievement gaps, keep all class sizes small or adequately address special education, arts and music needs.

"Either support children now or build more prisons later." That's the choice Mary Anne Mays, interim superintendent of Pajaro Valley Unified School District, plans to deliver to Sacramento on Monday on an advocacy mission, saying a failure to invest in education will lead some kids astray.

Officials estimate the county's districts will have to cut a combined $22 million next year. As the largest district, Pajaro Valley sent out 201 notices last Friday to teachers, administrators, counselors and other certificated staff, and approved an unprecedented negative interim budget certification last week.

Santa Cruz City and Scotts Valley school districts also issued notices. None of the potential layoffs are permanent until May 15, by which time districts hope the governor and lawmakers can offer some glimpse of whether new revenues or slashing elsewhere will reduce the cuts Schwarzenegger has recommended to close an $8 billion deficit.

Assemblyman John Laird, D-Santa Cruz, who chairs the Assembly Budget Committee, told the crowd of exasperated educators and whooping teenagers -- who were giddy just to be dismissed from third-period class on an unseasonably sunny spring morning -- that Schwarzenegger and Republicans in both houses must entertain new revenue streams.

"We're going to have to start together," Laird said.

Laird said the state should reinstate the vehicle licensing fee and unlock transportation and after-school funds that benefit education. Laird also tried to rally support around new taxes on oil companies, which Republican lawmakers shot down last week, although Laird said the measures would have tapped $1.2 billion to keep K-12 layoff notices at bay.

"The oil company didn't create this problem; Sacramento created the problem," Schwarzenegger said at a Fresno appearance Monday. "So why go after one company, when you then know that that means punishing again a whole bunch of entities?"

Schwarzenegger spokeswoman Rachel Cameron said Thursday, "This is why we need budget reform. It's not fair to our kids, especially with the way education is funded, to go through this roller coaster ride."

When pressed about why the governor won't at least approve interim revenue enhancements to balance next year's budget, Cameron said, "The governor has said raising taxes will not solve the problem."

Flanked by students carrying signs saying, "Terminate the governor, not teachers," Santa Cruz High Principal Karen Edmonds said she was delighted to welcome scores of youngsters to the rally, considering five of the school's teachers and other workers have received potential layoff notices.

"It's important for the students to see government in action," Edmonds said.