Schwarzenegger gets his recovery plan

In his biggest victory since taking office last month, Governor Arnold Schwarzenegger signed a fiscal recovery plan that will put a US$15 billion bond measure and new spending restrictions on the March ballot.

The bills, crafted by Schwarzenegger and Democratic leaders, were approved by the Senate earlier Friday, a day after the Assembly approved them. Schwarzenegger and legislative Republicans had pushed for tougher economic measures, but Democrats blocked their attempts last week.

"Today, I'm a happy governor," Schwarzenegger said during a signing ceremony attended by legislative leaders. "The recovery plan that I'm about to sign, I'm very happy about because both parties came together."

"This is a compromise," Senate Republican Leader Jim Brulte said. "What it does is force this state to begin to live within our means. This bill is better than the current situation."

Senators 35-5 for the spending restrictions; the 27-12 vote for the bonds was just enough to get that measure on California's March ballot.

The package has many provisions, including a mandate that spending cannot exceed revenues in any year. Long-term borrowing to pay operating expenses would not be allowed, except for the US$15 billion bond.