Schwarzenegger's first action as governor was to return the state's vehicle registration fee to 0.65 percent of a car's value, after it had previously been raised to 2 percent on October 1, 2003. It was announced on December 12, 2003 that Schwarzenegger and the
California State Legislature reached an agreement that put on the ballot a bond issue to finance as much as $15 billion in debt and a constitutional spending limit. On December 18, Schwarzenegger declared a fiscal crisis and said he would bypass the legislature to impose $150 million in spending cuts. On January 6, 2004, Schwarzenegger gave his first State of the State address in which he warned voters to expect deep budget cuts and urged them to support $15 billion in bonds. In the budget proposal that he presented on January 9, Schwarzenegger's plan was to cut spending by more than $4.6 billion, with the largest reduction, roughly $2.7 billion, coming from health and human services programs. Acknowledging that the reductions would be painful to many of the poorest Californians, Schwarzenegger said "irresponsible" spending by his predecessor forced his hand. On July 17, 2004, Schwarzenegger called state legislators
girlie men and called upon voters to "terminate" them at the
polls in November if they didn't pass his $103 billion budget. Amid Democratic criticism of these remarks, Schwarzenegger's spokesperson said on July 19 that no apology would be forthcoming. On July 31, Schwarzenegger signed a $78.8 billion budget, which was a $32 billion reduction over five years. Schwarzenegger signed agreements with five Native American tribes on June 21, 2004 that administration officials said would provide $275 million a year for the state's general fund—representing about 15 percent of the tribes' profits. On May 9, 2007, Schwarzenegger's office announced that eleven California-based companies signed contracts worth $3 billion with Chinese companies in a move to expand trade between the U.S. state and China. On May 26, 2005 Schwarzenegger travelled to San Jose, California, to fill a pothole dug by city crews just a few hours before, as part of an attempt to dramatize his efforts to increase funding for transportation projects. Schwarzenegger announced on June 13, 2005 that a special election would be held on November 8 of that year for voters to decide on a package of government reforms he championed on state spending and elections. In his fourth annual State of the State address on January 9, 2007, Schwarzenegger called for $43.3 billion in new bond spending for schools, prisons, and other infrastructure. Schwarzenegger gave his fifth State of the State address on January 8, 2008, in which he proposed a
balanced budget amendment, a constitutional amendment prohibiting the state from spending more than it collects in taxes. On January 11, 2008, Schwarzenegger proposed
austerity measures by taking billions of dollars from public schools,
shutting down four-dozen state parks, and releasing tens of thousands of prisoners. At the same time, the governor declared a fiscal emergency and called a special session of the state legislature to trim the current year's spending. Schwarzenegger signed six bills on February 16, 2008 that aimed at reducing at least part of the state's $14.5 billion deficit that stretches over two fiscal years. On February 19, 2008, Schwarzenegger signed an executive order requiring state agencies to make additional spending cuts that total $100 million as part of an effort to help solve the state's fiscal crisis. On April 24, 2008, Schwarzenegger predicted that California would face a budget deficit of more than $10 billion in the upcoming fiscal year. On September 23, 2008, Schwarzenegger signed the state's budget, ending an 85-day deadlock over how to close the state's $15.2 billion deficit. On July 9, 2008, Schwarzenegger signed a bill that aimed to keep many homeowners from losing their properties to foreclosure. On July 31, 2008, Schwarzenegger ordered pay for up to 200,000 state workers, cut state worker's minimum, minimum wage, and laid off more than 10,000 others, blaming a looming cash crisis. Schwarzenegger proposed a one-cent sales tax increase on August 4, framing it as a temporary sacrifice to be recouped by Californians in years to come. On August 6, 2008, Schwarzenegger said that he wouldn't sign any bills until the legislature passed a budget. Schwarzenegger sued Controller
John Chiang on August 11, aiming to force the unpaid furlough of 15,600 more state workers two days a month. Even though he earlier promised to not sign any bills, Schwarzenegger signed a measure on August 26 for a statewide bullet train system that he strongly supported. On October 27, Schwarzenegger said he would call a special legislative session to address the state's budget a day after the
November 4 elections. On December 1, 2008, Schwarzenegger declared a fiscal emergency, calling for fast legislative action to alleviate the state's $11.2 billion shortfall in revenue, "Without immediate action our state is headed for a fiscal disaster and that is why with more than two dozen new legislators sworn in today—I am wasting no time in calling a fiscal emergency special session." On December 18, 2008, Schwarzenegger promised to veto a budget bill that he said would cut spending too little, raise taxes and fees too much, and shortchange economic stimulus programs. Schwarzenegger called on the legislature on December 19 to convene a new special legislative session to address the state's fiscal crisis and ordered layoffs and mandatory unpaid time off for state workers as a money-saving measure. On January 6, 2009, Schwarzenegger vetoed an $18 billion deficit-cutting package with his spokesperson saying that it did not meet the governor's demands for making more cuts, streamlining government, and creating an economic stimulus. In a January 7 news conference, Schwarzenegger said, "I cannot go out and get Republican votes when I wouldn't vote for it." On January 15, Schwarzenegger gave an unusually terse State of the State address in which he warned that the legislature must agree on a budget solution before the state faced insolvency. On January 28, 2009 Schwarzenegger threatened to dismiss state workers if a judge or employee unions blocked his plan to furlough thousands of workers two days a month beginning the next week. After a judge ruled on January 29 that the governor had the legal authority to order workers to take time off without pay, Schwarzenegger told statewide elected officials on January 30 furlough state workers two days a month. On February 6, more than 200,000 state employees had to take the day off without pay to help ease
California's budget crisis. Schwarzenegger signed a budget bill on February 20 raising $12.8 billion in new taxes. On February 20, Schwarzenegger called the
federal stimulus plan a "terrific package" and said he was "more than happy" to take money from any governor that declined to accept aid from the stimulus. On March 27, 2009, Schwarzenegger signed five bills that would allow California to receive more than $17.5 billion in federal economic stimulus aid. On May 14, 2009, Schwarzenegger unveiled a budget proposal planning to close a huge budget deficit with deeper cuts to education and health programs and by borrowing billions more dollars. ==Environmentalism==