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ARNOLD GIVES SALES PITCH TO GOP ON HIS BUDGET FIX.


Byline: David M. Drucker Sacramento Bureau

BURLINGAME - Despite winning overwhelming Republican support in his run for governor, Arnold Schwarzenegger Arnold Alois Schwarzenegger (German pronunciation (IPA): [ˈaɐ̯nɔlt ˈaloɪ̯s ˈʃvaɐ̯ʦənˌʔɛɡɐ]  has yet to sell a majority of his party on his fix for the budget crisis - something he sought to change Friday in his first appearance before the state GOP since assuming office Nov. 17.

``If we pass 57 and 58, never again will the politicians drive our state to the verge of bankruptcy,'' Schwarzenegger told a sold-out ballroom of more than 700 people at the California Republican Party The California Republican Party is the California affiliate of the national Republican Party. Its chairman is Ron Nehring and is based in Burbank, California, a suburb of Los Angeles.  convention. ``It will be a whole new ball game; trust me.''

Recent polls show just 45 percent of registered Republicans support Proposition 57 - which would issue $15 billion in bonds to refinance Refinance

1. When a business or person revises their payment schedule for repaying debt.

2. Replacing an older loan with a new loan offering better terms.

Notes:
When a business refinances they typically extend the maturity date.
 the state's debt.

More than 60 percent support Proposition 58, his constitutional spending limit that would ban external borrowing for future deficits. Both initiatives on the March 2 ballot must pass with more than 50 percent of the vote for either to take effect.

Speaking to the state GOP delegates at their convention near San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , Schwarzenegger employed his persuasion PERSUASION. The act of influencing by expostulation or request. While the persuasion is confined within those limits which leave the mind free, it may be used to induce another to make his will, or even to make it in his own favor; but if such persuasion should so far operate on the mind  and popularity - he has 82 percent approval among Republicans - urging them to do something that many of them oppose: borrowing to cover deficit spending Deficit spending

When government spending overwhelms government revenue resulting in government borrowing.


deficit spending

Expenditures that are in excess of revenues during a given period of time.
.

The state Democratic Party has endorsed Propositions 57 and 58, as have top state Democrats such as state Controller Steve Westly Steven Paul Westly (born August 27, 1957, in Arcadia, California) is an American businessman and politician. He was the State Controller of California from 2003 to 2007 and was one of the top two candidates in the Democratic primary for Governor of California in the 2006 election.  - a co-sponsor of the measures with Schwarzenegger - and U.S. Sens. Barbara Boxer Barbara Levy Boxer (born November 11, 1940) is an American politician and the current junior U.S. Senator from the State of California.

A member of the Democratic Party, Boxer was first elected to the U.S.
 and Dianne Feinstein Dianne Goldman Berman Feinstein (born June 22, 1933) is the senior U.S. Senator from California, having held office as a senator since 1992. She is a member of the Democratic Party. .

On Friday, the state GOP's board of directors unanimously recommended that all delegates endorse the initiatives during a vote scheduled for Sunday. The 58 county GOP chairmen also endorsed them.

But the governor still has his work cut out for him. San Bernardino San Bernardino, city, United States
San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854.
 County delegate Benjamin Lopez of Montclair made up his mind even before Schwarzenegger spoke.

``I give the governor a lot of credit for coming up with this, this is the best deal he could have come up with,'' he said. ``But in my heart of hearts, being a die-hard conservative of the party, I cannot vote for it.''

The deal-breaker for Lopez and others like him was the governor's failure to obtain what he initially pushed for - a hard spending cap tied to a mathematical formula.

Although Lopez blamed the Democrat-controlled Legislature for that compromise, he said the ``weak'' spending limit Schwarzenegger negotiated with Democratic leaders would likely be the reason for his ``no'' vote - although he conceded his appreciation for the governor's efforts might lead him to abstain when he votes on March 2.

Schwarzenegger received numerous standing ovations during his approximately half-hour speech, which he also used to pledge his effort toward electing more Republicans to the Legislature, Congress and delivering California for President Bush in November. In swipe at state Democrats, he said government should be judged by its impact, not its size, and pledged to let taxpayers keep more of their money.

``We will never, and I repeat never, abandon our principles to cut a deal,`` Schwarzenegger said.

David M. Drucker, (916) 442-5096

David.Drucker(at)dailybulletin.com

CAPTION(S):

photo

Photo:

Gov. Arnold Schwarzenegger gives a thumbs up Friday at the California Republican Party convention in Burlingame.

Paul Sakuma/Associated Press
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Publication:Daily News (Los Angeles, CA)
Article Type:Statistical Data Included
Date:Feb 21, 2004
Words:530
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