One afternoon early in his second year as governor, Arnold Schwarzenegger flew home from Sacramento to Los Angeles with a vexing political problem. He needed to cut $2 billion from the budget he was putting together, and any of his best options for doing it could get him into trouble.
If he raised taxes, he'd anger his fellow Republicans. Break a promise to increase education funding and he'd alienate the top Democratic interest group, the California Teachers Assn. Option 3: Cut… more