Maybe This Guy Can Govern

When he charged into office last month, few believed Governor Arnold Schwarzenegger could easily wipe out California's current $15 billion budget deficit and fulfill pledges not to raise taxes or cut sacrosanct programs like education. He made his job more difficult by repealing an unpopular law that tripled the car tax, forfeiting $4 billion in revenues. Then he alienated local government officials by appearing to back off a vow to make up for those lost funds. But late last week he defied skeptics by pounding out a compromise plan with lawmakers to help balance the budget by putting on the March ballot a proposal for a $15 billion bond sale and another setting future spending limits, along with "rainy day" emergency reserves. The successful end to a rocky first month as Governor is getting good reviews, even from prominent Democrats. State controller Steve Westly calls it "a solid start" despite early missteps: "He's clearly on a learning curve. This is a much tougher act than anyone realized." The budget problems are hardly over, and Democrats have vowed to fight spending cuts that the Governor wants to close a $14 billion shortfall next year. But Oakland Mayor and former Governor Jerry Brown calls Schwarzenegger "a superb tactician" who knows how to use his mandate. The budget problems "are a bump in the road," says Brown. "And remember, he's driving a Hummer."