Schwarzenegger's Entire Agenda Is Rejected by California Voters

Schwarzenegger's Entire Agenda Is Rejected by California Voters


Nov. 9 (Bloomberg) -- California Governor Arnold Schwarzenegger lost
his gamble to go over the heads of lawmakers as voters rejected every
measure he offered to change the political, fiscal and educational
policy of the most-populous U.S. state.

In a special election called by the Republican movie star, voters
handed Schwarzenegger the biggest loss of his two-year career as
governor. Taking the stage as returns poured in last night,
Schwarzenegger refused to concede defeat while pledging better
cooperation with opponents.

``Californians believe that we need reform, we need change,''
Schwarzenegger said in a speech to supporters gathered at the Beverly
Hills Hilton. ``But the people of California are sick and tired of all
the fighting.''

The election is a victory for Democrats and union workers from nurses
to firefighters who worked to quash what they said was a Republican
power grab. Opponents said Schwarzenegger's defeat weakens a governor
who won office in 2003 and prevailed in two votes on initiatives last
year, only to see his standing with voters drop as he heads into
re-election.

``It's pretty clear this is a referendum on him,'' said Fernando
Losada, a union representative with the California Nurses Association,
as he and other opponents of the governor packed into Trader Vic's to
celebrate victory last night in Beverly Hills. ``If he goes down, his
political future in California is finished. It will cement his slide.''

`A Clean Sweep'

After midnight California time, all eight of the measures appearing on
the statewide ballot were losing. In addition to the governor's
proposals, voters rejected prescription-drug discounts, a limit on
abortion and power-industry regulation.

Schwarzenegger had called the special election to pitch three
initiatives. Proposition 77, which would have stripped lawmakers of
their power to draw legislative lines, was opposed by 58 percent of
voters. Proposition 76, to expand the governor's budget authority, was
rejected by 61 percent. Proposition 74, lengthening teacher tenure
times, was opposed by 54 percent.

A measure the governor supported but didn't propose, Proposition 75,
was trailing 48 percent to 52 percent. The proposition would require
public employees to give their unions consent for political spending.

``It looks like a clean sweep,'' said Charles Idelson, a spokesman for
the California Nurses Association.

Activating Opponents

Schwarzenegger's agenda was challenged by unions representing
teachers, police officers and health-care workers, as well as by
fellow actors and potential gubernatorial candidates Warren Beatty and
Rob Reiner. One lawmaker said Schwarzenegger, 58, has united Democrats
in California.

``He has totally activated our base in a way that we've had a very
difficult time activating,'' said Assemblywoman Jackie Goldberg, a
Democrat from Los Angeles. ``We're hoping that when people say we're
tired of this through voting against him, maybe he'll say he's willing
to work with us, instead of saying, `It's my way or the ballot box.'''

The campaign attracted hundreds of millions of dollars from backers
and opponents of the four measures endorsed by Schwarzenegger, as well
as the four others on the ballot.

This is the first rebuke by voters of a governor whose political
career has been bound up with California's nearly century-old laws
allowing rules to be set at the ballot box.

Blame

Supporters and opponents both said they anticipate a more conciliatory
tone from Schwarzenegger.

``If it looks like he's just going to fight all these constituencies
and keep pointing fingers, he's going to hurt himself,'' said Leon
Panetta, a former California congressman and chief of staff for former
President Bill Clinton. ``People are getting real tired of having both
parties blaming each other for why they can't govern and solve problems.''

The former bodybuilder, who made his statewide political debut with a
successful 2002 initiative for after-school programs, won election in
an unprecedented recall vote that ousted Governor Gray Davis.
Schwarzenegger cast himself as an outsider who wouldn't be beholden to
donors and could end partisan rancor.

Schwarzenegger used his popularity last year to win an overhaul of
California's workers' compensation insurance law by threatening to
take the topic directly to voters should Democrats stall. Yesterday's
vote eliminates that sway.

``He put the gun to our heads,'' Goldberg said. ``The difference was
he was very popular then. We felt that we had to go along with him, or
we would get hurt.''

Approval Slump

The governor's approval among voters has dwindled because of attacks
by opponents including the California Nurses Association. His critics
charge that a politician who was elected by pledging to cooperate with
Democrats was instead seeking to cripple them. Democrats outnumber
Republicans in the state.

By calling the special election, Schwarzenegger may have alienated
some voters who bristled at the expense. The measures could have
appeared on the ballot in the regular election set for June 2006.

Some Republicans at Schwarzenegger's victory party dismissed the
suggestion that the defeat heralds another rejection when he seeks
re-election a year from now. Duf Sundheim, chairman of the California
Republican Party, said voters will come to respect Schwarzenegger's
desire to tackle the state's problems, even if they reject his
specific plans.

Taking a Punch

Schwarzenegger now heads into his re-election campaign deprived of a
victory that might have made it easier to oust unresponsive
politicians and cut through the annual stalemates surrounding the budget.

The governor may take solace in history: The last California governor
not to go on to a second term was Goodwin Knight, who led the state
from 1953 to 1959, noted Bill Whalen, a former speechwriter for
Republican governor Pete Wilson and one-time Schwarzenegger adviser.

``He has history on his side,'' Whalen said, speculating about a
defeat before the vote. ``His life has pretty much been a series of
wall-to-wall successes. This would be a punch in the gut to any
politician. So that's the question: How well does he take a punch?''

To contact the reporters on this story:
William Selway in San Francisco at at wselway@bloomberg.net;
Michael B. Marois in Sacramento at mmarois@bloomberg.net.

Last Updated: November 9, 2005 04:08 EST
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