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A federal judge has threatened to take over the state's prison system, because of a deal Governor Schwarzenegger made with the prison guards. Although Schwarzenegger promised a tough contract re-negotiation, Judge Thelton Henderson says the Governor made so many concessions that the union will have more control of the prisons than it does now. That-s not good news for Schwarzenegger who, this weekend, called legislators -girlie men- for failing to stand up to -special interests- and pass a budget by the legal deadline-three weeks ago. Warren Olney speaks with legislators of both and the lead negotiator for big-city mayors if a compromise is in sight.
  • Reporter's Notebook: Schwarzenegger Tripped up by Budget Politics One of the major issues that led to the recall of former Governor Gray Davis was billions of dollars in deficit spending, amassed over three successive budgets. But Democrats refused to cut spending, and Republicans were equally adamant that there would not be any new taxes. Dan Walters, syndicated columnist for the Sacramento Bee, says that Arnold Schwarzenegger, who said he-s put an end to -politics as usual- may have already met his match.

Governor Schwarzenegger's overhaul of the state prison system

California budget

Walters' article on Governor Schwarzenegger's budget impasse

Producers:
Frances Anderton

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