http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2003/12/28/CALBUDGET.TMPThe honeymoon may be about to be terminated.
In just six weeks in office, Gov. Arnold Schwarzenegger has made bold, politically popular moves that have drawn cheers at public appearances and well-choreographed press conferences. The new governor delighted voters by cutting the hated car tax, appeased panicked mayors and sheriffs by doling out state money to local governments, and forged relationships with lawmakers by handing out cigars.
But the adulation and good will may disappear next month, when difficult, unpopular choices are due. Schwarzenegger faces a budget deficit, estimated to hit $14 billion, which is larger than the hole that Gov. Gray Davis left when he signed his last budget deal this summer.
Administration officials have hinted that Schwarzenegger may try to solve California's continuing fiscal nightmare by reshaping some of the missions of state government, affecting everything from health programs to higher education. He'll also likely be forced to confront the word every Republican politician fears most: taxes.