Retreating from another proposal for swift change in California government, Gov. Arnold Schwarzenegger on Wednesday dropped his demand that the state's legislative and congressional districts be redrawn by next year. Lawmakers and political analysts interpreted the move as a sign that the governor would back away from a planned special election this fall on a wide-ranging government overhaul. Schwarzenegger denied this. For months, he has insisted that California needs to immediately change its method of electing politicians, calling for independent judges — rather than legislators — to draw district boundaries. In February, he and his aides said there would be...