Lt. Gov. John Garamendi became the first candidate to announce he is running for California governor in 2010 by blasting the incumbent Thursday over the state's budget stalemate and declaring that he would raise taxes if elected.

The veteran Democratic politician announced his gubernatorial bid on the west steps of the Capitol, moments before Gov. Arnold Schwarzenegger signed an order to cut thousands of temporary state jobs and freeze pay of 200,000 workers at $6.55 an hour to help the state pay its bills.

The timing of Garamendi's announcement was no coincidence as he used the state's budget standoff to tout his own credentials as a leader who can direct the California out of a fiscal morass.

"California is not a movie set, and gridlock is not acceptable," Garamendi said in a dig at Schwarzenegger, the action star governor whose name won't be on the 2010 ballot. "This is real life. This is about real people and Californians who are hurting."

He added: "A stunt like a pay cut to $6.55 an hour doesn't solve the problems that California faces."

Fielding questions from reporters, Garamendi said he would solve the state's fiscal woes by raising taxes, cutting the size of state government and reshaping the way it operates.

He stressed he wouldn't be the first California governor to raise taxes if he is elected.

"Ronald Reagan faced this same budget crisis twice, George Deukmejian once and Pete Wilson once," Garamendi said, adding, "They made cuts. They sought significant reform, and they got it. And they raised taxes."

Garamendi also pledged support for a single-payer universal health care system in California. And he vowed to enhance the state's efforts to protect the environment and fight global warming.

Garamendi enters the race with a long political résumé. Yet the former two-term insurance commissioner, Clinton administration official and longtime state lawmaker is overshadowed by higher-profile politicians eyeing the race. They include Attorney General and former Gov. Jerry Brown, San Francisco Mayor Gavin Newsom and Los Angeles Mayor Antonio Villaraigosa.

Newsom has already announced an exploratory committee to run for governor but hasn't formally entered the contest. The Democratic field could also include former state Controller Steve Westly, who ran in 2006, as well as state Superintendent of Public Instruction Jack O'Connell and state Treasurer Bill Lockyer.

"I can name seven who might be in the race, and I welcome a crowded field," said Garamendi. "Let us talk about the things we want to do and the things we have done.

"Frankly, I've won six statewide races, and I'm prepared to win this one."

David McCuan, a professor of political science at Sonoma State University, said Garamendi – for now – is "a B-list candidate" who will be challenged to break through in the Democratic pack.

"He has a long set of contacts in Sacramento, but the 2010 gubernatorial (race) is going to be about folks who are fresh and new on the scene as much as those who cut their teeth working in Sacramento," said McCuan, who listed Brown, Newsom and Villaraigosa as the Democrats' A-list.

Potential Republican candidates include Insurance Commissioner Steve Poizner, former Silicon Valley congressman Tom Campbell and former eBay President Meg Whitman.

Garamendi, whose campaign committee had about $150,000 cash on hand in March, has tried hard to stay in the political spotlight while toiling in relative obscurity as lieutenant governor.

He stood front and center to express concerns for two wayward humpback whales who traveled up the Sacramento River, even naming them "Delta and Dawn." And he has publicly has used his post as a University of California regent and California State University trustee to demand lower tuition for students.

Garamendi ran unsuccessfully for governor in 1982 and 1994 and briefly flirted with a run during the 2003 recall of Gray Davis. He broke into state politics in 1974 when he was elected to the Assembly.

The former University of California football player and 1960s Peace Corps volunteer in Ethiopia has positioned himself as a fighter for working Californians and an innovator for promoting mass transportation and new environmental technologies.

As insurance commissioner, he drew fire for his handling of the collapse of Executive Life Insurance Co. He seized the company's assets to protect policyholders from financial losses from Executive Life's junk bond portfolio, then was criticized after a French investment group bought and resold the assets for a hefty profit.

Call Peter Hecht, Bee Capitol Bureau, (916) 326-5539.