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CNN Live At Daybreak

Schwarzenegger Gives 'State of the State'

Aired January 07, 2004 - 06:32   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: Governor or movie star. Governor or movie star. Which would you rather be? Well, if you're Arnold Schwarzenegger, it's governor. He has given his first State of the State address, and our Rusty Dornin was there.
(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Forty-five days after taking office, Governor Arnold Schwarzenegger told state lawmakers that being governor was better than being a movie star.

Facing a $15 billion deficit, Schwarzenegger still kept his promise not to make taxpayers reach into their own pocketbooks.

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: A tax increase would be the final nail in California's financial coffin. The people of California did not elect me to destroy jobs and businesses by raising taxes. I will not make matters worse.

DORNIN: But he says there is no choice but to make spending cuts. And everywhere his message was reorganize and consolidate government, whether it was energy policies, workmen's compensation or even education, only with a Schwarzenegger twist.

SCHWARZENEGGER: Every governor proposes moving boxes around to reorganize government. I don't want to move boxes around. I want to blow them up.

DORNIN: Then it was on to what has become his mantra: jobs, jobs, jobs and a Hollywood-style promise.

SCHWARZENEGGER: I am going to become California's jobs czar. I am going to travel the nation and the world to find those jobs.

DORNIN: To fix the business climate, he took aim, as expected, at the workmen's compensation program. He says if the legislature won't do it, he promises to take the vote to the people.

Outside, thousands of people protested about cuts to services for the disabled.

After the speech, leading Democrats were worried about all cuts and no revenue, but were cautiously optimistic.

HERB WESSON (D), CALIFORNIA ASSEMBLY SPEAKER: We will cooperate with this governor, but we will not capitulate on Democratic core values. DORNIN (on camera): All want to see what some fear are the tough details of Schwarzenegger's budget -- details that won't be released until the budget is officially released on Friday.

Rusty Dornin, CNN, Sacramento, California.

(END VIDEOTAPE)

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 January 7, 2004 - 06:32   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Governor or movie star. Governor or movie star. Which would you rather be? Well, if you're Arnold Schwarzenegger, it's governor. He has given his first State of the State address, and our Rusty Dornin was there.
(BEGIN VIDEOTAPE)

RUSTY DORNIN, CNN CORRESPONDENT (voice-over): Forty-five days after taking office, Governor Arnold Schwarzenegger told state lawmakers that being governor was better than being a movie star.

Facing a $15 billion deficit, Schwarzenegger still kept his promise not to make taxpayers reach into their own pocketbooks.

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: A tax increase would be the final nail in California's financial coffin. The people of California did not elect me to destroy jobs and businesses by raising taxes. I will not make matters worse.

DORNIN: But he says there is no choice but to make spending cuts. And everywhere his message was reorganize and consolidate government, whether it was energy policies, workmen's compensation or even education, only with a Schwarzenegger twist.

SCHWARZENEGGER: Every governor proposes moving boxes around to reorganize government. I don't want to move boxes around. I want to blow them up.

DORNIN: Then it was on to what has become his mantra: jobs, jobs, jobs and a Hollywood-style promise.

SCHWARZENEGGER: I am going to become California's jobs czar. I am going to travel the nation and the world to find those jobs.

DORNIN: To fix the business climate, he took aim, as expected, at the workmen's compensation program. He says if the legislature won't do it, he promises to take the vote to the people.

Outside, thousands of people protested about cuts to services for the disabled.

After the speech, leading Democrats were worried about all cuts and no revenue, but were cautiously optimistic.

HERB WESSON (D), CALIFORNIA ASSEMBLY SPEAKER: We will cooperate with this governor, but we will not capitulate on Democratic core values. DORNIN (on camera): All want to see what some fear are the tough details of Schwarzenegger's budget -- details that won't be released until the budget is officially released on Friday.

Rusty Dornin, CNN, Sacramento, California.

(END VIDEOTAPE)

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