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CNN Live At Daybreak

Challenges Facing Arnold Schwarzenegger

Aired November 17, 2003 - 05:03   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


CAROL COSTELLO, CNN ANCHOR: California voters made their choice, out with the old and in with the new. And their new era officially begins today.
CNN's Frank Buckley looks at some of the challenges facing Arnold Schwarzenegger as he prepares to finally take office.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Oh, we're not gonna take it. Come on!

FRANK BUCKLEY, CNN CORRESPONDENT (voice-over): It was a campaign that was big on production values and promises.

ARNOLD SCHWARZENEGGER (R), CALIFORNIA GOVERNOR ELECT: We are here, ladies and gentlemen, to clean house.

BUCKLEY: A campaign short on specifics. But Arnold Schwarzenegger did say that on day one as governor, he would eliminate the recent tripling of the car licensing fee in California.

SCHWARZENEGGER: I can kill that tax with my signature alone and I will do exactly that.

BUCKLEY: But "Sacramento Bee" political columnist Dan Walters says if Schwarzenegger keeps his other promises...

SCHWARZENEGGER: I say this again, I will not raise taxes.

BUCKLEY: ... promises of no taxes and no cuts in education, the budget will not balance.

DAN WALTERS, "SACRAMENTO BEE": In the absence of more borrowing, no, it's probably not possible. It simply doesn't add up.

BUCKLEY: Herb Wesson, the state's assembly speaker, says the issue will be a tough one for Schwarzenegger because the $4 billion generated by the car licensing fee goes directly to local governments.

HERB WESSON (D), SPEAKER, CALIFORNIA STATE ASSEMBLY: If you eliminate that fee, then you're going to reduce firefighters and police officers throughout the state.

BUCKLEY: Wesson and Walters both say the state's budget and its multi-billion dollar operating deficit are things Schwarzenegger will have to tackle immediately.

WALTERS: And it's probably the biggest thing he faces and it's going to probably make or break his governorship right off the bat.

SCHWARZENEGGER: Good morning.

BUCKLEY: Politically, Schwarzenegger faces the challenge of being a governing novice. And Speaker Wesson says that unless the moderate Schwarzenegger can influence his more conservative fellow Republicans, there could be trouble.

WESSON: Because if he can't move them to the middle, then he won't be able to deliver on the promises that he made.

BUCKLEY: There may be questions on the groping allegations. There will likely be fires or other disasters. And just how the actor, soon to be governor, tackles those and other challenges that provide for endless fascination.

WALTERS: And it's going to be difficult separating out Arnold Schwarzenegger the celebrity from Arnold Schwarzenegger the governor, and it may be difficult for him to do it, as well.

BUCKLEY (on camera): But Schwarzenegger will have to hit the ground running. His proposed budget is due at the printer's office next month. And a special session of the legislature, Schwarzenegger's first, will get under way just a day after he takes office.

Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

COSTELLO: And be sure to tune into CNN this afternoon for special coverage of the inauguration. Judy Woodruff hosts our coverage from Sacramento. That begins at 2:00 p.m. Eastern.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired November 17, 2003 - 05:03   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: California voters made their choice, out with the old and in with the new. And their new era officially begins today.
CNN's Frank Buckley looks at some of the challenges facing Arnold Schwarzenegger as he prepares to finally take office.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Oh, we're not gonna take it. Come on!

FRANK BUCKLEY, CNN CORRESPONDENT (voice-over): It was a campaign that was big on production values and promises.

ARNOLD SCHWARZENEGGER (R), CALIFORNIA GOVERNOR ELECT: We are here, ladies and gentlemen, to clean house.

BUCKLEY: A campaign short on specifics. But Arnold Schwarzenegger did say that on day one as governor, he would eliminate the recent tripling of the car licensing fee in California.

SCHWARZENEGGER: I can kill that tax with my signature alone and I will do exactly that.

BUCKLEY: But "Sacramento Bee" political columnist Dan Walters says if Schwarzenegger keeps his other promises...

SCHWARZENEGGER: I say this again, I will not raise taxes.

BUCKLEY: ... promises of no taxes and no cuts in education, the budget will not balance.

DAN WALTERS, "SACRAMENTO BEE": In the absence of more borrowing, no, it's probably not possible. It simply doesn't add up.

BUCKLEY: Herb Wesson, the state's assembly speaker, says the issue will be a tough one for Schwarzenegger because the $4 billion generated by the car licensing fee goes directly to local governments.

HERB WESSON (D), SPEAKER, CALIFORNIA STATE ASSEMBLY: If you eliminate that fee, then you're going to reduce firefighters and police officers throughout the state.

BUCKLEY: Wesson and Walters both say the state's budget and its multi-billion dollar operating deficit are things Schwarzenegger will have to tackle immediately.

WALTERS: And it's probably the biggest thing he faces and it's going to probably make or break his governorship right off the bat.

SCHWARZENEGGER: Good morning.

BUCKLEY: Politically, Schwarzenegger faces the challenge of being a governing novice. And Speaker Wesson says that unless the moderate Schwarzenegger can influence his more conservative fellow Republicans, there could be trouble.

WESSON: Because if he can't move them to the middle, then he won't be able to deliver on the promises that he made.

BUCKLEY: There may be questions on the groping allegations. There will likely be fires or other disasters. And just how the actor, soon to be governor, tackles those and other challenges that provide for endless fascination.

WALTERS: And it's going to be difficult separating out Arnold Schwarzenegger the celebrity from Arnold Schwarzenegger the governor, and it may be difficult for him to do it, as well.

BUCKLEY (on camera): But Schwarzenegger will have to hit the ground running. His proposed budget is due at the printer's office next month. And a special session of the legislature, Schwarzenegger's first, will get under way just a day after he takes office.

Frank Buckley, CNN, Los Angeles.

(END VIDEOTAPE)

COSTELLO: And be sure to tune into CNN this afternoon for special coverage of the inauguration. Judy Woodruff hosts our coverage from Sacramento. That begins at 2:00 p.m. Eastern.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com