Hours after the news broke of the new Schwarzenegger poll
, the Governor has admitted defeat and given up his plan to privatize pensions.
SACRAMENTO, California (Reuters) - California Gov. Arnold Schwarzenegger backed off from one of his top priorities on Thursday, saying he would not push for a statewide vote this year on partial privatization of the state's massive public pension funds.
Schwarzenegger said he would back overhauling the state pension funds as a ballot measure next year if lawmakers fail to craft compromise legislation on the controversial issue, which mirrors Bush administration aims for private accounts within Social Security.
The Cato Institute deserves the credit for costing the GOP the California Governor's Mansion. Privatization is sinking, the only question is how many go down with the ship.
The quote of the year comes from Josh Marshall:
It's sort of like with Bush and Arnold and dope. They both did it; but Arnold just comes out and says it.
This is a major defeat for the embattled Governor. Having this on the spring ballot prevents Schwarzenegger's re-election campaign from coordinating with the initiative money. Schwarzenegger has already dropped 10 pts. this year and now that it is clear he can be beaten everyone will pile on. This week has been a major turning point in California's 2006 gubernatorial campaign. Schwarzenegger is unpopular, on the run, and things are only going to get worse. It is so bad the Governator can't even visit San Francisco without huge protests.
The Democrats are now favored in the 2006 race for governor.
Check out the Democrats, Phil Angelides and Bill Lockyer because one of them is going to beat Schwarzenegger.