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...Schwarzenegger has said many times that he doesn't want to simply balance the state budget. He wants to overhaul public employee pension programs, introduce merit pay for teachers, change the way legislative districts are drawn and impose a spending control measure that would force across-the-board cuts if he and lawmakers can't agree on a budget.
Democrats, who have said their top priority is to balance the budget that is supposed to take effect July 1, have said they will give Schwarzenegger's proposals a fair hearing but doubt there's very much support on their side of the aisle for any of them.
Schwarzenegger told the enthusiastic audience that labor unions representing teachers and other public employees are falsely claiming he's imposing draconian budget cuts in an attempt to weaken his standing with the public so he'll be forced to back down.

"They know that my approval rating is in the 60s," he said. "The legislators' (are) in the 30s ... and you will see all those TV ads and those radio ads and those newspaper ads just to try to bring my poll numbers down.