Arnold knows that the has to take a hard line right now on the Cal budget. State government spending was wildly out of control throughout the Davis aministration (which "Davistated" the state budget.) If California tries to eliminate its budget deficit with a major tax increase, that will drive more high-income business people out of the state and drive the state into bankruptcy for sure. They have to cut spending in California, otherwise the state budget will end up under the control of a bankruptcy court. I wouldn't underestimate Arnold and the GOP in this fight. I think they're going to win and trim back spending substantially.
I won't "misunderestimate" our GOP. I'm kind of in a wait-and-see holding pattern. I just want to see our state show some improvements. Hope Arnold can do it.