EDITORIAL A NEW TRADITION GOVERNOR, DEMS PROMISE TO TAKE COOPERATION TO A NEW LEVEL.

GOOD intentions and hope are soaring in the state's Capitol.

As the legislative year finishes and a new one is set to open, Gov. Arnold Schwarzenegger and legislative leaders are sharing their agendas for the next year. And everyone is talking about how these things will be accomplished, by golly.

This time, though, some of those high hopes could actually be realized if the state's politicians build on the new spirit of cooperation that took root in Sacramento in the past 12 months.

The 2006 legislative year started out rough enough. Schwarzenegger had just suffered a humbling defeat of his special-election initiatives. The Democratic leadership was reveling in having brought the movie star governor down a peg. It seemed the perfect setup for more partisan gridlock.

Instead, the state's pols managed to get some actual work done. Even while partisanship roiled elections throughout the nation, resulting in a Democratic takeover of the U.S. House and Senate, California's pols quietly worked together.

They passed a balanced and on-time budget. They compromised on a package of bonds to start rebuilding the state's crumbling infrastructure. They passed climate change legislation. Such cooperation wasn't unheard of, just remarkable after years of clashing.

Assuming the state's politicians continue this cooperative spirit in the next year, they have a chance of doing some real work toward building a better California.

The governor's top agenda items -- health care insurance reform, political redistricting and fixing the prison system -- would be good firsts.

If the governor and the Legislature managed to finish out the next year with plans to address those three important issues, that would be a new California tradition they could be proud of.