CA Governor in Washington D.C. for Stimulus Money

Fresno, CA, USA On 'This Week' with George Stephanopoulos Governor Arnold Schwarzenegger spoke honestly about the state's $42-billion dollar deficit, cutting the budget and increasing revenue specifically through a new car tax increase, something Schwarzenegger vowed not to do upon election in 2003.

"In this particular case in order to solve for a 42 billion dollar deficit, the only way you can do that is by a combination of making severe cuts and also some revenue increases," said Governor Arnold Schwarzenegger (R) California.

Schwarzenegger and other fellow governors were in Washington D.C. to discuss the benefits of the president's new stimulus package. Already several Republican governors like Louisiana's Bobby Jindal and South Carolina's Mark Sanford plan to turn down a portion of unemployment money because they believe it could end up increasing taxes in the long run.

Schwarzenegger said if those governors don't want the money then he will gladly take their cut. "A lot of my colleagues look at this differently. I look at this in a more optimistic way and I feel very strongly that I think President Obama right now needs team players," said Schwarzenegger.

Some Valley residents support the governor's plan to get on board with President Obama. "I think we ought to give him a chance with his programs and see how that works," said Joyce Pratt of Clovis.

But some believe Schwarzenegger is walking a fine line accepting federal dollars. "They don't want the federal government telling them how to run the state government," said Dwayne Keyes of Fresno.

Some financial experts claim California's billion dollar deficit, sky rocketing foreclosure rates and overall unemployment numbers are a warning to all other states. But Sunday morning Schwarzenegger promised he would turn these problems around. "I am a reformist. I want to go in there and fix what is broken in California and I will be relentless with that and never ever give up."

The governor's financial team believes it will take another 2-3 years before a positive change is noticed.


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