Arnold Schwarzenegger's improbable rise to governor in the 2003 recall election left many Californians giddy at the prospect that the state finally would have an energetic reformer at the helm after years of mismanagement in Sacramento so irresponsible that it bordered on looting. For about two years, reform was for the most part what we got. Schwarzenegger's chief goal was promoting economic growth – a business-friendly state will have more revenue to pay for its needs, he liked to note. But he also worked to restrain spending and to overhaul dysfunctional agencies – especially the prison system. Unfortunately, the painful...