Well, maybe not. The revenues are rolling in nicely into Sacramento's coffers these days (including a fair chunk of my own), and believe it or not (I know you don't take what I say at face value very often), the folks up there have managed to figure out a way to spend it. They are very creative indeed.
Whether Angelides or Schwarzenegger, the governor will be a plurality choice. The vast majority of the California electorate will dislike the winner. As a plurality winner (receiving support from probably <20% of the electorate), neither will have a mandate. Since both candidates will command little respect from the elected officials in their respective parties, for vastly different reasons, the situation will, indeed, be no win for either.
Both major parties have fouled their own nests with poor gubernatorial candidate choices this time around and the results will be telling on the State of California.
There is a bright side. After 12 years of liberal governors, the state's electorate will be ready for a conservative in 2010. If circumstances don't change drastically in the next 4 years, there will still be a sufficient number of elected conservatives legislators to allow a conservative governor to effectively impede the advances of liberalism under the Davis and Schwarzenegger/Angelides administrations.