California is issuing IOUs and still doesn't have a balanced budget, but Gov. Arnold Schwarzenegger said Friday that it's far from the worst state in the nation for business.
"We are the best place simply because of we are a diversified economy," Schwarzenegger said during a news conference in San Francisco. "What state has entertainment, music, agriculture, biotechnology, nanotechnology, green technology, high technology?"
"Look at other states. … Texas? Oil. Florida? Old people. Whatever," he said. "We have a whole bunch of things."
"California is doing very well," he said. "We just have to get out of this crisis."
With the exception of his comments on California's economic fortitude, Schwarzenegger delivered nearly the same speech Friday as he did in Fresno and Los Angeles the day before.
The governor has been trying to build public support while pressuring Democratic legislators to agree to more cuts as well as changes in state employee pensions and social welfare programs as part of any deal to close the $26.3 billion budget gap.
He characterized legislators as stalling needed changes for years. "They go on and on with the drama because all they really want to do is kick that can down the road again," he said.
Schwarzenegger met with Senate President Pro Tem Darrell Steinberg on Friday after his San Francisco appearance.
Steinberg, D-Sacramento, has said Democrats have already agreed to deep cuts in education, welfare and services for the elderly and disabled, and want to hold the line on more.
Alicia Trost, Steinberg's spokeswoman, said he also had a drink and a talk Thursday night with Senate Republican leader Dennis Hollingsworth of Murrieta.
"It went well," Trost said, adding that despite the governor's comments, Democrats are talking about reforms.
Assembly Speaker Karen Bass, D-Los Angeles, stayed in Sacramento on Friday for budget talks, too, said her spokeswoman Shannon Murphy.
Bass' priority, Murphy said, is preserving health care for children and in-home care for the elderly.
"She is not interested in polishing the governor's conservative legacy," Murphy said.
Call Susan Ferriss, Bee Capitol Bureau, (916) 321-1267.
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