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FROM THIS EPISODE

In his second State of the State speech tonight, Arnold Schwarzenegger called for reforming government. He said that he'd call a special session of the legislature tomorrow to reshape the budget and put a limit on spending without raising taxes. He'll require merit pay for teachers and change the way the legislators' district boundaries are drawn. Predicting that so-called -special interests- would call him heartless, Schwarzenegger said the people will rise up if changes aren-t made as soon as this summer and vowed to -fight by their side.- The Governor did not provide details to what it will take to erase an $8 billion deficit. We hear excerpts of the Governor-s speech, get reaction from leading Democrats and Republicans, and ask the Director of Finance just where the axe is going to fall.

Governor Schwarzenegger's State of the State 2005 (video)

State of the State 2005 (text)

Governor's proclamation calling for Special Session of the Legislature

Producers:
Frances Anderton

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