Governor learns hard lessons

Five years ago, Gov. Arnold Schwarzenegger told Californians in his first address to the Legislature that the state couldn't afford to tax its way out of a fiscal mess or borrow against the future. AP in the Daily News.

As the governor prepares to deliver his annual State of the State address today, California is again on the brink of financial calamity and Schwarzenegger's solution relies heavily on new taxes, fee increases and borrowing.

The grim news is not what the perennially optimistic governor envisioned when he swept into office with reform on his mind and a pledge to restore the California dream.