California Gov. Schwarzenegger seeks bold agenda but details short

Schwarzenegger spelled out Wednesday how he hopes to capitalize on his last chance for a legacy, even as he confronts another $20 billion budget deficit. He promised to protect California schools in the wake of billions of dollars in cuts and proposed a constitutional amendment to prevent the state from spending more on prisons than universities.

He also pitched a $500 million job creation and retraining program to be paid for with a state fund that currently has a surplus, said he will seek to streamline permits for construction project to get them going sooner, extend last year's $10,000 homebuyer tax credit for first-time buyers and exempt from sales tax manufacturing items bought by green technology companies.

"The people and businesses of California are an engine of self-betterment and progress," the Republican governor told a packed Assembly chamber. "As long as government keeps the engine oiled with prudent policies—and more importantly, does not pour sand in its gears—this state will persevere and prosper."