Arnold did make an attempt to get a control of the parts of the state budget, but, if you remember, his 2006 ballot initiatives got schmiced at the ballot box, thanks in large part to the public sector unions - teachers, etc. They played the "World will end if you vote for Arnold's propositions" card. Arnold learned his lesson. The majority of voters in California want to have it both ways, so they're gonna' get it but good.
Around 50% of state taxes goes to schools and the California Teachers Union is the largest in the state. So anytime there is even the whiff of a threat to their kingdom, the airwaves are flooded with dramatic and heartfelt pleas to Joe Voter and how they should storm the state capitol, destroy all Republicans and hang Arnold in a gibbet for the sport of the crows.