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Schwarzenegger holds talks on economy; Ueberroth releases plan

Judge refuses to delay recall

Arnold Schwarzenegger, center, with economic advisers Warren Buffet, left, and George Shultz, right.
Arnold Schwarzenegger, center, with economic advisers Warren Buffet, left, and George Shultz, right.

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LOS ANGELES, California (CNN) -- Actor Arnold Schwarzenegger promised Wednesday to create a "positive business environment" in California without raising taxes or cutting education if voters oust incumbent Gov. Gray Davis and choose him to lead the state.

Meanwhile, a federal judge refused to delay the October 7 recall election, rejecting a request from the American Civil Liberties Union.(Full story)

And former Baseball Commissioner Peter Ueberroth formally kicked off his gubernatorial campaign Wednesday, offering an economic plan that focuses on tax amnesty, spending cuts and protecting a voter-imposed cap on property tax rates.(Full story)

Davis, who won a second term last November, lashed out at Republicans Tuesday night, calling the recall part of a nationwide GOP attempt "to steal elections Republicans cannot win."(Full story)

Schwarzenegger, the most prominent Republican vying to replace Davis, met with his high-profile "California Economic Recovery Council" in a Los Angeles hotel Wednesday morning. The panel includes billionaire investor Warren Buffett, former Secretary of State George Shultz and Michael Boskin, former President Bush's top economic adviser.

Schwarzenegger said that if elected, he would launch a 60-day audit of state government to find ways to solve the state's severe budget shortfall.

"We must immediately attack the operating deficit head-on," he said. "Now, does this mean that we are going to make cuts? Yes. Does this mean education is on the table? No. Does this mean I'm willing to raise taxes? No."

The recall was triggered by the state's economic and energy woes. A recent budget agreement between Democratic and Republican legislators in Sacramento eliminated a $38 billion deficit through cuts and borrowing, but it created an expected shortfall of at least $8 billion for the next fiscal year.

Pressed for specifics

Schwarzenegger has been criticized for failing to offer details on his policy positions in his bid to replace Davis, and more conservative rivals have accused him of planning to raise taxes. He bristled at that criticism Wednesday, saying that anyone who claims to have an immediate solution was "just a typical politician."

"Before the carping begins about the need for the 25-point plan on each one of those items, let me make one thing clear: These problems that I just mentioned were not created in two weeks, nor will we be able to solve those problems in two weeks," he said.

Ueberroth, meanwhile, promised "truth, substance and specifics" in releasing his economic plans Wednesday. The former major league chief and 1984 Los Angeles Olympic chairman said Californians "deserve nothing less."

A recent poll indicated that 58 percent of California voters would support ousting Davis in the October 7 recall. On the same ballot, 135 candidates -- ranging from fellow Democratic Lt. Gov. Cruz Bustamante to pornography magnate Larry Flynt, Hollywood billboard pinup Angelyne and former child actor Gary Coleman -- are vying to replace him.

In an effort to win back the electorate, Davis admitted making mistakes dealing with the state's energy and budget problems in a Tuesday night speech in Los Angeles, but denounced the effort to recall him as a "right-wing power grab."


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