After Arnold Schwarzenegger took over as governor in 2003, his experience playing the title role in "Kindergarten Cop" surely came in handy. For years, Sacramento's leaders had acted like irresponsible children, eager to add new programs and benefits without paying for them. The result was an annual gap of $16 billion between revenue and spending. For two years, Schwarzenegger played the role of responsible adult, trying to hold the fort on spending while promoting workers' compensation reforms and other pro-business measures to increase revenue. The result was real progress. The annual structural deficit was reduced by more than half, and...