ARNOLD STUMPS ACROSS STATE FOR GOP.

Byline: David M. Drucker Sacramento Bureau

SACRAMENTO - Gov. Arnold Schwarzenegger today begins a vigorous four-week campaign to oust incumbent Democrats from the Legislature and defeat two ballot measures that would significantly expand gambling in California.

The Republican governor is ramping up fund-raising activities, with an average of one event per week planned through the Nov. 2 election and a goal of raising over $5 million as his political team keeps a close eye on competitive legislative races where his help might deal a setback to Democratic candidates.

``(Defeating Democrats) is a significant priority,'' Schwarzenegger communications director Rob Stutzman said Tuesday. ``He believes his agenda to create jobs and to be fiscally responsible has to do with adding Republicans to the Legislature.''

The governor begins with two town-hall meetings - today in Irvine and Thursday in San Jose - urging voters to oppose Proposition 68, backed by racetracks and card clubs, and Proposition 70, heavily funded by some American Indian tribes that operate Las Vegas-style casinos.

Schwarzenegger aides said Tuesday he also plans to travel to Japan about a week after the November election to promote trade and market California, and he probably will schedule a trip to China early next year.

Between now and Election Day, he also plans to continue campaigning for Proposition 1A, the proposed constitutional amendment that would prevent the state from raiding local governments' tax revenues to balance the state budget.

But a Schwarzenegger priority is defeating propositions 68 and 70. The passage of either would negate Indian-gaming compacts Schwarzenegger reached with about ten tribes earlier this year.

Proposition 68 would allow gambling to expand into urban card clubs and horse-racing tracks. Proposition 70 would lift limits on the number of slot machines and types of games offered at Indian casinos.

The administration estimates the compacts signed thus far to be worth about $240 million in annual revenue to the state plus a $1 billion one-time payment that has been earmarked for transportation. But proponents of propositions 68 and 70, respectively, say their measures are a better deal for California.

``The best thing about Prop. 70 is its simplicity,'' spokesman Jamie Fisfis said. ``It applies the state corporate income tax to the Indian gaming industry. Once voters understand that, it's pretty hard to shake them from supporting it, even if someone as popular as the governor says he can get a better deal.''

Democrats, defending a number of legislative seats in November, also doubt Schwarzenegger's popularity will translate into victory at the polls.

The open Democratic seats high on the GOP takeover list include an Assembly district encompassing Long Beach and the Palos Verdes peninsula and another comprising parts of San Mateo and Santa Clara counties.

``He's enormously popular; it's obviously going to have some impact,'' said Steve Maviglio, a spokesman for the Assembly Democratic caucus. ``But he endorsed (Republican U.S. Senate candidate) Bill Jones, and that hasn't had an impact, so we don't expect (him) to have a significant impact on the Assembly races.''

David M. Drucker, [phone]

david.drucker(at)dailybulletin.com