BAGHDAD, Jan. 10 (UPI) -- U.S. forces mounted a major air offensive against al-Qaida targets Thursday on the southern outskirts of Baghdad, the military said.

In one of the largest airstrikes in months, American bombers and fighter jets dropped 40,000 pounds of bombs on suspected militant hideouts, storehouses and defensive positions in the southern outskirts of Baghdad, The New York Times reported.

Two B-1 bombers and four F-16 fighter aircraft dropped 38 bombs within 10 minutes near the Latifiya district south of Baghdad, the military said.

Col. Terry Ferrell, commander of the Second Brigade, Third Infantry Division, said an extraordinary amount of firepower was necessary to clear the areas, which U.S. forces had long neglected, the newspaper said.

The airstrikes were part of a nationwide offensive, dubbed Operation Phantom Phoenix, which includes a continuing sweep in Diyala Province, north of Baghdad, and raids Thursday in Salahuddin Province, northwest of the capital, between Samarra and Ramadi.

Gates: Iraqi security forces make strides

WASHINGTON, Jan. 10 (UPI) -- The Iraqi military played a critical and visible role in the new security environment in the country, U.S. Defense Secretary Robert Gates said Thursday.

Speaking on the one-year anniversary since U.S. President George W. Bush announced the military surge, Gates said security gains have been notable.

Gates spoke at a joint press conference at the Pentagon with Iraqi Minister of Defense Abd al-Qadir al-Mufriji. The two discussed laying a foundation for a long-term security relationship.

"Over the past year, Iraqi security forces have grown in capability, confidence and size, expanding by more than 100,000," Gates said. "Iraq has assumed security responsibility for nine of the 18 provinces in the country, and we expect this transfer to continue."

The number of improvised-explosive-device bombings has been cut in half, he said.

"High-profile attacks -- car bombs and suicide attacks -- are down 60 percent since March, and civilian deaths are down 75 percent from a year ago, though (they are) still far too high," Gates said.

Mufriji, through an interpreter, said most of Iraq is safe and secure, highlighting the strides Iraqi security forces have made.

"The situation is not any different than any country in the world," he said.

Schwarzenegger proposes deep budget cuts

SACRAMENTO, Jan. 10 (UPI) -- California Gov. Arnold Schwarzenegger Thursday proposed a $141 billion state spending plan that includes deep program cuts but no tax increases.

The Republican governor, to plug a $14.5 billion deficit, proposed closing 48 state parks or beaches and releasing tens of thousands of non-violent prison inmates early, The Los Angeles Times reported.

Schwarzenegger is also proposing a $4.7 billion cut in health and human service spending that will reduce healthcare benefits for the state's poor as well as payments the state makes to doctors and hospitals that care for them, the newspaper said.

"It is very difficult," Schwarzenegger told reporters Thursday morning. "I can see every single person hurt by these cuts. I understand how difficult it will be for these people."

The budget proposal calls for expanding the state's debt load by more than $40 billion to finance construction at public schools, colleges and other major institutions.

'Colossus' Edmund Hillary dies

AUCKLAND, New Zealand, Jan. 10 (UPI) -- Sir Edmund Hillary, who climbed to international fame as a member of the first climbing party to scale Mount Everest, died Thursday in New Zealand at age 88.

New Zealand Prime Minister Helen Clark called Hillary the best-known New Zealander ever to have lived, The New Zealand Herald reported. Hillary died in Auckland City Hospital, reportedly surrounded by his family.

"Sir Ed described himself as an average New Zealander with modest abilities. In reality, he was a colossus," Clark said.

The one-time beekeeper reached the crest of Mount Everest May 29, 1953, with Tenzing Norgay' title='Sherpa Tenzing Norgay' class='tpstyle'>Sherpa Tenzing Norgay. He once said of the feat, "We knocked the bastard off."

Hillary climbed 10 other peaks in the Himalayas, and reached the South Pole as part of the Commonwealth Trans-Antarctic Expedition.

Hillary, who had experienced failing health in recent years, became a writer and lecturer later in life.

He was made a knight of the Order of the British Empire in 1953 and 42 years later received knighthood in the Order of the Garter.

Hillary founded the Himalayan Trust, a philanthropic organization through which he provided assistance to Nepal.

Hillary is survived by his second wife, June, and two children.