Arnold Schwarzenegger Watch: California 2006 State of the State

Former Gov. Gray Davis, accompanied by his wife, Sharon, right, smiles as he listens to Gov. Arnold Schwarzenegger’s State of the State address at the Capitol in Sacramento, Calif., Thursday, Jan. 5, 2006. Schwarzenegger replaced Davis as governor in the 2003 recall election.

Why is RECALLED Governor Gray Davis smiling?

“This is like in the Army — left, right, left,” Davis shrugged.

Washington Post: Schwarzenegger Seeks Huge Spending Increase

With $70 Billion Plan to Rebuild State, He Continues Move to the Middle in an Election Year

Arnold Schwarzenegger proposed extensive new spending for highways, schools, air quality and ports Thursday as he attempts to move to the political middle and regain his footing after a disastrous second year as California’s governor.

In his second State of the State address, Schwarzenegger proposed a $70 billion bond issue, the biggest in California history, which over the next decade would pay for new schools, roads, better ports and improved air quality, as well as new levees and jails. He also backed a dollar increase in the minimum wage.

“We must build a California eager to meet the challenges of the 21st century without reluctance or fear,” Schwarzenegger said in unveiling his plan, which would amount to twice California’s annual budget.

“I say build it,” Schwarzenegger, 58, repeated throughout his speech as he outlined a vast “strategic growth plan” to rebuild the state’s crumbling infrastructure.

TAX and SPEND Politics

Developing for details………

Assembly Speaker Fabian Nunez, D-Los Angeles, left, and Gov. Arnold Schwarzenegger joke with each other after Schwarzenegger delivered his annual State of the State address held in Assembly Chambers at the Capitol in Sacramento, Calif., Thursday, Jan. 5, 2006. At right is state Sen. President Pro Tem Don Perata, D-Oakland.