NewsMax.com Wires
Wednesday, Jan. 7, 2004

In a State of the State address broadcast Tuesday, the actor-turned-politician offered a glimpse of how he sees his new role as political leader of the nation's most populous state.

Schwarzenegger touted a $15 billion bond ballot measure he hopes will be approved by voters in March, urged lawmakers to pass "real" changes to the workers' compensation system and other reforms, and repeatedly emphasized the need to spend less.

"The fact of the matter is that we do not have a tax crisis; we do not have a budget crisis; we have a spending crisis. We cannot tax our way out of this problem," he said.

'I Can Sell Just About Anything'

The governor said he would promote California workers and locations to businesses worldwide.

"I am a salesman by nature," the former Hollywood superstar said. "If I can sell tickets to my movies like 'Red Sonja' or 'Last Action Hero,' you know I can sell just about anything. California is the easiest sell I've ever had."

Elected in a historic October recall election, Schwarzenegger takes over at a critical juncture. California faces a new deficit of at least $14 billion next year even after the current deficit of nearly $15 billion is expected to be paid off by the bond measure.

Schwarzenegger didn't detail his budget to be released Friday, but prepared the state for cuts that will hit all levels of government. He said that "economic chaos" would ensue if voters did not approve the bond measure.

Setback for Socialism

The target of most budget cuts is expected to be public health and welfare programs. The governor has already released a list of about $4 billion in proposed spending reductions, including changes to the state health insurance program.

"These are cuts that will challenge us all," he said. "But we cannot give what we do not have. If we continue spending and don't make cuts, California will be bankrupt."

Schwarzenegger announced the creation of a commission to find areas in state government that duplicate work or are wasteful.

Assembly Speaker Herb Wesson, a Democrat, said Democrat lawmakers would cooperate with Schwarzenegger, "but we will not capitulate to this governor on issues of core Democratic values."

Senate President Pro Tem John Burton, a Democrat, said the governor's vow never to raise taxes might back him into a corner.

"How can you, for instance, say cut the money to higher education and then say put a limit on fees?" Burton asked. "And not have any new revenue and say that everyone should have a chance to go to college? It does not compute."

© 2003 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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