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Arnold ran as a Republican. California has a Democratic Senate. He proposed a "universal" healthcare insurance package which was apparently too lavish even for a group of Democratic Senators. Yes, that's correct: California's "Republican" Governor is effectively to the left of his Democratic opponents, some of whom are more concerned than he is about the cost.
California is $14 billion in the hole. "At the same time, Schwarzenegger issued proclamations declaring a fiscal emergency..." When you can't even keep the state running, you should be focused on trying to trim back unnecessary or wasteful programs, and upping your taxable income (by making the state business-friendly) before proposing lavish new ones. Arnold is a big fan of McCain, apparently. McCain doesn't seem to understand economics either, from what I've seen. Yes, yes, he says he's in favor of (for example) the tax cut now, but I'm one of those people who watches what people do when nobody was looking and remembers it later. As he himself admitted, McCain voted against the tax cut before he was for it. Do we need another temporary conservative? Florida Republicans say "yes"!
Government's job isn't to weigh the motives of people and punish bad thoughts. (That's God's job, actually.) But this kind of rhetoric is all too popular today, even, sadly, among the alleged conservative party. Add your two cents...
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