Governor Schwarzenegger's well-delivered State of the State speech last week won accolades from observers worldwide. The Los Angeles Times went so far as to call it "masterful." But despite the media hordes and the expected references to the governor's illustrious film career, the stage is far from set for a Hollywood ending when it comes to California's looming budget disaster. If the $15-billion bond measure the governor succeeded in putting on the March ballot is not passed by California voters, the state could face bankruptcy as early as June. Behind the scenes, the governor is advancing what he appears to...