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California Recall Creates Strange Bedfellows

Aired September 26, 2003 - 15:12   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.


JUDY WOODRUFF, CNN ANCHOR: The California recall has led to some unusual political alliances and divisions. A case in point, Democrat and former San Jose Mayor Tom McEnery has emerged as a strong public supporter of Arnold Schwarzenegger.
Tom McEnery is with me now from Los Angeles. We're also joined by Ann Lewis. She is the senior recall adviser for the Democratic National Committee.

Tom McEnery, to you first.

Just a practical question for Arnold Schwarzenegger: Should he take the governor up on what is apparently a serious suggestion that the two of them debate?

TOM MCENERY (D), FORMER SAN JOSE MAYOR: Well, I think a lot of people have made up their minds on the governor. But if Arnold wants to debate him, that's OK with me.

WOODRUFF: Why shouldn't they -- if he wants the governor's job, shouldn't he face the governor square on?

MCENERY: Well, I think what he has been saying, Judy, is that the economy is in freefall. And you have a political structure in Sacramento awash with special interest money that either cannot or will not change.

I've observed them eight years as mayor of San Jose. And we need dramatic changes in Sacramento. And Arnold's really the first person that I've talked to in 20 years that's interested in structural economic and political reform. And he's endorsed both of those.

WOODRUFF: Ann Lewis, what does it say if Arnold Schwarzenegger doesn't debate the governor?

ANN LEWIS, DNC SR. RECALL ADVISER: Well, I think it says a lot, if he's really not willing to step out from behind his 30-second ads and make those kind of comments face-to-face, where they can be challenged.

Arnold Schwarzenegger has information on the air right now that is simply factually untrue. He talks about the California economy -- and I just heard it -- in freefall. In fact, California is doing as well or better than the rest of the country. California's holding on to more manufacturing jobs than the rest of the country. California's economy is moving up. And yet Arnold Schwarzenegger has these lines on again talking about the state spending so many millions of dollars a day and going into debt.

That is factually untrue. If he's going to make charges like that, he ought to stand up, he ought to say them, and he ought to say them in the presence of Gray Davis, who has the information and could respond.

WOODRUFF: What about that, Tom McEnery?

MCENERY: Well, I don't make charges.

Harry Truman, that great Democrat, said, "I just tell the truth and they think it's hell." In San Jose, we've lost 200,000 jobs. I have friends who have small clothing stores and restaurants that are out of business. We have major problems in California that both Governor Gray Davis and the legislature, awash in special interest money, will not correct.

It's wonderful to debate in the salons of Washington how great it is in California. I'm telling you, we have desperate needs in the economy that only an outsider, I think, can fix.

LEWIS: Well, we do have needs. And people in California are right to be concerned about jobs. I just want to point out, in context, that this has been happening across the country. And there are national economic policies involved.

MCENERY: Anne, Silicon Valley is a leader.

LEWIS: Arnold Schwarzenegger talks about special interest money. He talks about special interest money, and he wouldn't take it.

And yet, a year ago, when he was trying to move a ballot initiative, he took money from those very same groups that he now wants to turn his back on. He says: I won't take special interest money, but I'll take money from powerful interests, like corporations that do business. That's really a very false distinction.

MCENERY: Judy, it's so clear that the Democratic Party that I've been a proud member of, and my father before me as state chairman, is willing to do and say anything to vilify Arnold Schwarzenegger, to talk about his father, to talk about different things he's said.

LEWIS: Tom, he didn't take contributions?

MCENERY: And not address the fundamental issue.

Half of the money in this campaign is being put up by Maria Shriver and Arnold himself. He's taking small donations; $10,000 may not seem small to a lot of people, but the opposition has taken $5 million from the gambling interests. Do you know what gambling interests do in one little city in San Jose, Ann?

(CROSSTALK)

MCENERY: Let me finish this point.

(CROSSTALK)

LEWIS: He did take money from Native American tribes last year. He took money from the same groups last year that you are now saying, oh, they're terrible gambling interests. Last year, he took the money. This year, he says, oh, no, it's special interest money. Could we have some consistency?

MCENERY: He took some money for a children's initiative. And Washington doesn't understand, Ann, scope and scale.

If you take $1,000 from 100 people, it's very different than taking $5 million from gambling interests that, in one city, San Jose, have corrupted a political process, have tried to coerce high police officials; $5 million is a little different from $1,000 checks. And you'll be negotiating with those people.

WOODRUFF: All right, Ann Lewis, I want to ask you about something else before we run out of time.

LEWIS: Yes.

WOODRUFF: And that is, Governor Davis was asked about the replacement candidates. And here's what he said. He said: "After you vote no on the recall, I don't care who you vote for on question two."

Now, is he distancing himself from Cruz Bustamante, the way apparently Mr. Bustamante was distancing himself from the governor?

LEWIS: Well, I was there. And I think what he was saying is, it's so important to me, I just want to talk to you about voting no on the recall. If you vote no on the recall and we win on voting no, then it's not going to matter what happens on part two.

WOODRUFF: All right, we are going to leave it there. Ann Lewis, Tom McEnery, thank you both. Only a week and a half to go.

MCENERY: Thank you.

WOODRUFF: We appreciate it.

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 September 26, 2003 - 15:12   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JUDY WOODRUFF, CNN ANCHOR: The California recall has led to some unusual political alliances and divisions. A case in point, Democrat and former San Jose Mayor Tom McEnery has emerged as a strong public supporter of Arnold Schwarzenegger.
Tom McEnery is with me now from Los Angeles. We're also joined by Ann Lewis. She is the senior recall adviser for the Democratic National Committee.

Tom McEnery, to you first.

Just a practical question for Arnold Schwarzenegger: Should he take the governor up on what is apparently a serious suggestion that the two of them debate?

TOM MCENERY (D), FORMER SAN JOSE MAYOR: Well, I think a lot of people have made up their minds on the governor. But if Arnold wants to debate him, that's OK with me.

WOODRUFF: Why shouldn't they -- if he wants the governor's job, shouldn't he face the governor square on?

MCENERY: Well, I think what he has been saying, Judy, is that the economy is in freefall. And you have a political structure in Sacramento awash with special interest money that either cannot or will not change.

I've observed them eight years as mayor of San Jose. And we need dramatic changes in Sacramento. And Arnold's really the first person that I've talked to in 20 years that's interested in structural economic and political reform. And he's endorsed both of those.

WOODRUFF: Ann Lewis, what does it say if Arnold Schwarzenegger doesn't debate the governor?

ANN LEWIS, DNC SR. RECALL ADVISER: Well, I think it says a lot, if he's really not willing to step out from behind his 30-second ads and make those kind of comments face-to-face, where they can be challenged.

Arnold Schwarzenegger has information on the air right now that is simply factually untrue. He talks about the California economy -- and I just heard it -- in freefall. In fact, California is doing as well or better than the rest of the country. California's holding on to more manufacturing jobs than the rest of the country. California's economy is moving up. And yet Arnold Schwarzenegger has these lines on again talking about the state spending so many millions of dollars a day and going into debt.

That is factually untrue. If he's going to make charges like that, he ought to stand up, he ought to say them, and he ought to say them in the presence of Gray Davis, who has the information and could respond.

WOODRUFF: What about that, Tom McEnery?

MCENERY: Well, I don't make charges.

Harry Truman, that great Democrat, said, "I just tell the truth and they think it's hell." In San Jose, we've lost 200,000 jobs. I have friends who have small clothing stores and restaurants that are out of business. We have major problems in California that both Governor Gray Davis and the legislature, awash in special interest money, will not correct.

It's wonderful to debate in the salons of Washington how great it is in California. I'm telling you, we have desperate needs in the economy that only an outsider, I think, can fix.

LEWIS: Well, we do have needs. And people in California are right to be concerned about jobs. I just want to point out, in context, that this has been happening across the country. And there are national economic policies involved.

MCENERY: Anne, Silicon Valley is a leader.

LEWIS: Arnold Schwarzenegger talks about special interest money. He talks about special interest money, and he wouldn't take it.

And yet, a year ago, when he was trying to move a ballot initiative, he took money from those very same groups that he now wants to turn his back on. He says: I won't take special interest money, but I'll take money from powerful interests, like corporations that do business. That's really a very false distinction.

MCENERY: Judy, it's so clear that the Democratic Party that I've been a proud member of, and my father before me as state chairman, is willing to do and say anything to vilify Arnold Schwarzenegger, to talk about his father, to talk about different things he's said.

LEWIS: Tom, he didn't take contributions?

MCENERY: And not address the fundamental issue.

Half of the money in this campaign is being put up by Maria Shriver and Arnold himself. He's taking small donations; $10,000 may not seem small to a lot of people, but the opposition has taken $5 million from the gambling interests. Do you know what gambling interests do in one little city in San Jose, Ann?

(CROSSTALK)

MCENERY: Let me finish this point.

(CROSSTALK)

LEWIS: He did take money from Native American tribes last year. He took money from the same groups last year that you are now saying, oh, they're terrible gambling interests. Last year, he took the money. This year, he says, oh, no, it's special interest money. Could we have some consistency?

MCENERY: He took some money for a children's initiative. And Washington doesn't understand, Ann, scope and scale.

If you take $1,000 from 100 people, it's very different than taking $5 million from gambling interests that, in one city, San Jose, have corrupted a political process, have tried to coerce high police officials; $5 million is a little different from $1,000 checks. And you'll be negotiating with those people.

WOODRUFF: All right, Ann Lewis, I want to ask you about something else before we run out of time.

LEWIS: Yes.

WOODRUFF: And that is, Governor Davis was asked about the replacement candidates. And here's what he said. He said: "After you vote no on the recall, I don't care who you vote for on question two."

Now, is he distancing himself from Cruz Bustamante, the way apparently Mr. Bustamante was distancing himself from the governor?

LEWIS: Well, I was there. And I think what he was saying is, it's so important to me, I just want to talk to you about voting no on the recall. If you vote no on the recall and we win on voting no, then it's not going to matter what happens on part two.

WOODRUFF: All right, we are going to leave it there. Ann Lewis, Tom McEnery, thank you both. Only a week and a half to go.

MCENERY: Thank you.

WOODRUFF: We appreciate it.

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