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Now to my interview with Governor Arnold Schwarzenegger. During his only
three weeks as governor, Schwarzenegger has enjoyed some early legislative
successes. He suffered a major setback for his economic recovery plan, and a
libel lawsuit by one of the women who claim to have been groped by the actor
years ago.
I began a little while ago by asking Schwarzenegger if he's enjoying his new job as much as he thought he would. (BEGIN VIDEOTAPE) GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: I'm having a great time. I mean, it's very challenging, and it's kind of refreshing, also, at the same time, because it's so new, it's so different than being 25 years on movie locations and doing scenes and doing stunts and all those things. So this is something new, a new challenge. And the other thing is just that every time you make a decision here, it has an effect on millions and millions of people, rather than just making decisions that has an effect on yourself or maybe your family. So, to me, this has become a very interesting kind of a thing. And, like I said, very challenging, hard work. But I enjoy it. WOODRUFF: Now, here you are, you're still on your honeymoon, you had a great election victory, you had an inauguration that was broadcast all over the world. People were watching from everywhere. But three weeks later, or last Friday night, the legislature turns around and hands you a big defeat on these budget questions and the spending cap. What happened? SCHWARZENEGGER: Well, first of all, I mean, you maybe look at the glass half empty. I look at it half full. So it was not really a defeat. It was, basically, we're in the middle of negotiations right now. And I think that there is a way of reaching a compromise. And if -- and if there is a defeat, then it is a defeat for the people of California. It's not my defeat. It's not their defeat. It's the people of California that really lose, because we are in an emergency right now, and this is the problems that Governor Davis faced, you know, in his last year. And I think there's just such a huge budget deficit, there was such an enormous amount of overspending. And the whole thing is totally out of control. And what we have to do is, we have to take this inherited debt that we have, roll it into one, and offer the bond, and let the people vote on it, the $15 billion bond. But at the same time, have a budget -- a spending limit on that so that it never happens again. That's the idea. And, of course, it's very tough for legislators to do, because they like to spend. They like to spend. And so for them to now say, let's put a cap on that, let's put a spending limit on it, let's restrain ourselves, is almost impossible. And this is why I compare it with addiction and intervention. That if they cannot stop themselves, then we have to get outside intervention, which will be the ballot on November. So that's what the other alternative is. WOODRUFF: Well, do you think you're close to working something out in the next day or so? SCHWARZENEGGER: Yes. WOODRUFF: Because I know you're talking to Democrats and Republicans right now. They were prepared to go -- or close to being prepared to going along with you on the bond, the borrowing. But it was that spending cap. Are you prepared to compromise, are they prepared to compromise? SCHWARZENEGGER: Well, I think that they know that there has to be a spending limit. The only thing is, it's a question of, what is the definition of spending limit? And so we're working on that language so that it is restraining them from spending money, but at the same time, gives certain flexibility that they're concerned about. So that's what we're negotiating right now. WOODRUFF: So it sounds like you're willing to now give on this point of flexibility. So that if conditions change, if fiscal conditions, economic conditions change, maybe they can spend more than... SCHWARZENEGGER: Well, no, it's much more. How do we increase the spending? Should it be -- there's just simple definitions of what should be an increase of population and inflation, or should it be an increase in population and wages or there's different definitions. So one works in those kind of things. But there's a lot of little details that have to be worked on. But we always were ready and flexible and ready to negotiate. And so were they. We didn't meet yet. And remember, when you have first strikes like we had in Los Angeles, they negotiate sometimes for three months. We only had literally a week to negotiate. So what their complaint was, you know, we don't have enough time because the election was so late. Therefore, Arnold, you were sworn in so late. And then, all of a sudden, you're faced within a week or two with all these enormous problems and challenges, including preparing the budget, including having to make the state of -- the state address beginning of January. So there's a lot of challenges that are thrown at me. But, as I said, I'm positive. I think we can do it. Let's just work around the clock and do it. And I think there's a good chance that we can do it. WOODRUFF: All right. I want to ask you some more about that. But Governor, I also want to ask you about a story that is out there in the last few days, and that is the announcement by your own staff yesterday that you've decided not to pursue an independent investigation of these allegations by a number of women, as many as 16 women, that you either groped them or in some way sexually handled them. Why is your office not going to pursue an investigation? SCHWARZENEGGER: I think it's because the people have spoken. Their voices have been heard. They elected me to be governor. They sent me up here to do the job. They sent me to Sacramento to straighten out the mess. And there's such enormous challenges ahead, as you were talking about, the budget crisis that we have, and major decisions have to be made in order to straighten out the mess, that, you know, that's what I'm here to do. And so that's why I'm concentrating on this right now. WOODRUFF: And yet, you said before the election -- in fact, you told Tom Brokaw in an interview -- that all of the details would come out after the election. So do you feel you're breaking a promise? SCHWARZENEGGER: No, it was -- I meant much more for me, that I wanted to look into it myself. And so that doesn't mean that I won't do that. But, I mean, the bottom line is right now, I'm focusing on this and there's no investigation. WOODRUFF: How, then, do you think there will be closure on these? Because right now, these charges are just out there. How will this come to be closed as an issue? Or are these just going to be hanging out there, indefinitely, do you think? SCHWARZENEGGER: Well, no. I mean, I consider those kind of pre- election things because, remember, I've been here for 35 years in this country. And I've never had any complaints filed against me, never any complaints made to me. So it was rather odd, I would say, that just a few days before the election that all of a sudden there was 16 that had, you know, complaints. WOODRUFF: So it's just put aside? SCHWARZENEGGER: There is no investigation. WOODRUFF: All right. Governor, one other thing. This lawsuit that was filed in the last few days by Rhonda Miller, a woman who had named you as fondling her on two movie sets in the early 1990s, '91 and '94, now she is suing you, your campaign, saying that she was maligned because your campaign staff told the press that she was guilty of -- had been convicted of prostitution. Is it possible that -- you staff apparently made a mistake and misidentification here. What do you think you can do about this? SCHWARZENEGGER: I'm not familiar with the case, so I cannot comment on that at all. WOODRUFF: Is it possible -- if it happened that your staff made an error here and identified, connected this Rhonda Miller with another Rhonda Miller, what would you do about that? SCHWARZENEGGER: I have to find out more about it, because this is all news to me. I really don't know anything about that case. WOODRUFF: So -- but if it did happen, would you act? SCHWARZENEGGER: I will look into it, yes, absolutely. (END VIDEOTAPE) WOODRUFF: There is much more of my interview with Governor Schwarzenegger ahead. Does he think he has spent too much time on PR and not enough negotiating with lawmakers? Plus, as Al Gore's former campaign manager, our own Donna Brazil has special insight into his endorsement of Howard Dean. We'll talk to her ahead. And we'll find out who former NBA star Charles Barkley is cheering for in this presidential race. (COMMERCIAL BREAK) WOODRUFF: More now on my conversation with California Governor Arnold Schwarzenegger. We spent time today talking about the state budget crunch and the governor's efforts to rally public opinion behind his proposals. I asked the governor about those who say that his rallies amounted to going behind the backs of state lawmakers. (BEGIN VIDEOTAPE) SCHWARZENEGGER: Well, I was here every day, 10 to 12 hours. I was always available, day and night, to negotiate and to talk. So I don't think that was a problem. I think there are certain legislators who don't like me to be out there in their neighborhoods and talking about the policies because they feel threatened by it. But in order to tone that down, I even took the legislators, Democrats and Republicans, with me on those trips to have them be with me there when I did my appearances and my speeches. And they were very happy about that and delighted to come with me and be part of the campaign and all that. So I didn't see that as a problem at all. I will continue doing the things that I've promised the people to do, which is that I always will include the people. Because the people are always -- have this feeling the wool is pulled over their eyes and the politicians are doing backroom deals. They don't know what's going on in Sacramento, they're not filled in. They want the politicians to be out there. They want them to talk to the people and include them in the decision-making process and let them know what's going on. That's what I want to do. I was successful in doing that during the campaign, and I will continue doing that, to do those stops and go to different cities, villages, shopping malls and talk to the people. WOODRUFF: But the way politics works in California, as you know, the two parties have created pretty safe districts for almost every member of the legislature. You've got districts that are safe for Republicans, districts that are safe for Democrats. Some people are saying, is it -- isn't it, to some extent, a waste of your time to go out to campaign, to threaten these lawmakers, when, in reality, these are districts that were drawn to protect them? SCHWARZENEGGER: If, in fact, I go out and threaten them. But that's not what I did. I go out and talk to the people and communicate to the people of what the policies are, what are we facing right now. And I ask them to call the legislators and to let their voices be heard. I said, "If you want to have the bond issue on the March ballot, call your legislators and let them know." That's what I'm doing. I am directly in touch with the people and reach out and communicate with the people. WOODRUFF: But isn't there an unspoken statement there that, if you don't go along with me, then I'm going to campaign for an opponent in the future? SCHWARZENEGGER: If that's the way they take it, then so be it. But my way of doing things is to reach out and be in touch with the people, because it's the people that put me in power. It's the people that flexed their muscles on October 7 and let their voices be heard, and that's why I'm governor. And I want to let them know that I will keep my promises, that I will always let them know what we're doing. That there's no such thing as behind hidden doors or special deals or so. They always will be included. And they should let their voices be heard. What happened on October 7 is, for the first time, you had 70 percent of the people vote. That means that there is an enormous energy out there of people now being interested in politics all of a sudden, interested in issues. What are they doing in Sacramento? Reading the papers, wanting to know, tuning into television. They're interested for the first time. And it is very important to keep that alive and to increase it, to not make it only 70 percent, but to take it to 80 percent, 85 percent, 90 percent. Let the people know that, you should participate. WOODRUFF: But, in fact, California is now facing a very real fiscal crisis. You know that better than anybody. The bond rating of California was again lowered today as a result of what's going on out here. You now face a situation where you've got to come up with a budget for next year in just a matter of a few weeks. How do you -- do you plan to spend -- if you don't come up with something this week, do you plan to just spend the whole year campaigning against the state legislature? SCHWARZENEGGER: Well, it's not that much campaigning. It's that, no matter what happens, I will always let the people know what happens. They should know because we're dealing here with money that is not our money. It is their money. Every dollar that we have here is the people's money, it's taxpayers' money. And therefore, we have the obligation to let the people know. And the time for secrecy and the time for making backroom deals and all this stuff is over. That's why during my campaign, I said that we should open up the government. We should let the people have the chance to look inside, have sunshine go in there behind those hidden doors. And that's what I'm doing, is I'm opening it up to let them know what the situation is. (END VIDEOTAPE) WOODRUFF: I'll have much more of my interview with Governor Schwarzenegger in our next half-hour. He talks more about the sexual harassment allegations, about budget cutting and about the difference between governor and being in the movies. For the rest of interview check out http://www.cnn.com/TRANSCRIPTS/0312/09/ip.00.html
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