Schwarzenegger Speaks

This is a partial transcript from "The O'Reilly Factor," June 16, 2005, that has been edited for clarity.

Watch "The O'Reilly Factor" weeknights at 8 p.m. and 11 p.m. ET and listen to the "Radio Factor!"

BILL O'REILLY, HOST: And in the "Factor Followup" segment tonight, as we showed you last
night, the governor of California has become somewhat controversial, with some people actually demonstrating against him. This scene at Santa Monica College was disgraceful, in my opinion. Now, it's because Arnold Schwarzenegger wants to change the way politics is done in the Golden State. The governor has asked the voters to consider three initiatives next November.

First, to make it more difficult for public schoolteachers to get tenure. That is, they can't get fired. Second, that the Democratic-controlled legislature not be allowed to change the boundaries of districts. And third, the California voters approve a spending cap that cannot be exceeded.

Well, you would think the governor had proposed all Californians move
to Bangladesh or someplace for the outcry. Governor Schwarzenegger joins
us now from Sacramento.

The main criticism of you is that this initiative is going to cost a
lot of money in November. And you're doing an end run around the
legislature. That's why they say they're mad at you. Are you buying that?


First of all, Bill, it's nice again to talk to you. And let me just
tell you that we had the recall election almost two years ago, because our
state was almost going into bankruptcy. And our state legislators have
spent money they don't have. And then they started talking about taxing
the people more money, and they started increasing the car tax for $4

And this — businesses were moving out of the state. We had the worst
credit rating and the highest worker's compensation costs. It was total
chaos here in this state.

So when I ran for governor, I promised the people that, first of all,
I will represent them, not the special interests and not the unions. And
No. 2, that I will be fighting for them and that I would fix a broken
system. And this is exactly what I'm doing now.

This is a three-step program. The first year, we stop the state from
going into bankruptcy. And also we turn the economy around to bring jobs
back. We created 328,000 new jobs and an additional $6 billion in

So our economy is going great. Businesses are coming back. And
businesses are successful again in creating opportunities and jobs. So all
of it is going well. We reformed worker compensation and sent the tax
money back to the people, the $4 billion.

Now the second year is about reform, because we have to get to the
source. Why did our state get into such unbelievable troubles? Why did we
go down with our economy like we did? How did — why did so many people
lose their jobs? Why is our education system deteriorating? And all of
those things have to be addressed.

So I say the second year is about reform. The first year is stop the
bleeding. Second year, let's heal the patient. And then when we have
reformed California, then we can go and rebuild California and build for
the future.

O'REILLY: All right. Now, look, I don't have any problem with the
initiative. I want the folks to vote on the stuff that you want to vote
them on. I mean, it's crazy to have incompetent teachers in the classroom
you can't fire. It's insane to have a budget that just goes crazy because
some people want to buy votes. I mean, all of this looks logical.

But you go to your alma mater, Santa Monica College, a two-year
concern, you do them a favor by showing up to the graduation. And you've
got these people screaming nasty stuff at you, out of control. Do you ever
say who are these people? Or why are they doing this?

SCHWARZENEGGER: Well, no, I never ask myself who are these people
because we — it was very clear there was a difference between the students
that very much appreciated my speech and they were sitting there and giving
me a standing ovation, and then the 100 people in the background, all the
way up to the right of the bleachers that were organized by the Public
Employees Union.

So this is all union people that are organizing those demonstrations.
And it's not the ordinary people out there. It's not the students that
were protesting. They had great respect and they enjoyed my speech.

And I was very happy to go back to Santa Monica College, which was,
really, kind of the foundation for me to learn in this country, to kind of
re-educate myself and add to my education and get a degree here. And then,
you know, get smart and be able to function here and become part of the
American fabric.

O'REILLY: All right. So you think that because you want to impose
fiscal discipline, spending discipline, which means the unions wouldn't get
as much money, teachers union, nurses union, whatever it may be, you think
that they now have organized campaigns to belittle you and to attack you?

SCHWARZENEGGER: Well, they're spending millions and millions of
dollars because they feel threatened by all of this. You have to
understand they believe in a status quo.

Is it the only thing that changed during the recall election is the
governor. But the same people that have created the mess and that almost
sent the state into bankruptcy, they're all still there. The same unions
are there. The same special interests are there. The same legislators are
there. They're all still there. So this is why it is a major, major

But I promised the people that I will fix the broken system. And so
the reforms that we are talking about is about fixing the system.

O'REILLY: All right. Now, are they winning...

SCHWARZENEGGER: And the key thing — the key thing I just wanted to
mention to you is the $80 million we talked about earlier that it would
cost. It costs, first of all, only $40 million.

And just to show you an example, this year, again, the legislators
have put things in the budget that will get us $1 billion more than last

O'REILLY: Of course, they will always do that. Every Democrat...

SCHWARZENEGGER: I'm just saying, so what is the difference between
the $40 million and the $1 billion that's already in the budget that will
create an additional $1 billion of debt?

O'REILLY: Right.

SCHWARZENEGGER: So it's irresponsible. And we must stop them from

O'REILLY: But here's the problem. Every Democratic-controlled state
house in the country is going to be spending. That's what they do. They
want the government to run everything, so they spend. That's what they
do. Everybody knows that.

But they may be winning against you, because your approval rating is
dropping as — because they do have the media, the "Los Angeles Times" and
other powerful media behind them. They may be winning the war, Governor.
Do you see it that way?

SCHWARZENEGGER: Well, first of all, I don't believe that for one
second. Because the fact of the matter is that the people are with me.
The people loved the initiatives. The people want the reform...

O'REILLY: What about the approval rating, though?

SCHWARZENEGGER: Well, that's OK. Because, you see, this is just one
of those things where they throw all their money, millions of dollars, on
television. And they do their campaign. And they beat up on you, and so
people, some of them, you know, think this is the truth, what they're
telling them. And so your approval ratings go down.

But remember one thing: I did not go into this, to become governor of
California and to fix California, to win a popularity contest. I know, and
every governor would tell you that — and every president and every
politician would tell you that, you know, your popularity goes up and
As soon as you start attacking serious problems and making serious
decisions and strong decisions, sometimes they're not popular decisions.

O'REILLY: OK. Listen, absolutely. I wish we had more politicians
that did that. Now I have more questions for the governor. So stay
there. We'll be right back.


O'REILLY: Continuing with California Governor Arnold Schwarzenegger
from Sacramento.

How bad is illegal immigration? Illegal, illegal, not legal
immigrants, just illegal immigration, hurting the state of California?

SCHWARZENEGGER: Well, I think that first of all, it is hurting the
state of California. But then on the other side, you know, there are
people that say that it is helping us. So...

O'REILLY: But what do you say? What do you say?

SCHWARZENEGGER: I myself say that it makes no difference if it is
hurting or helping the state. I think anything you do illegal is not
good. I think that the federal government should be, obviously, much tougher and
have much more border patrols available so that we can secure the borders.

O'REILLY: All right. Now remember when we talked about 18 months
ago, I asked you the same question. And you were just taking the job
over. OK?

And you said, "Look, I'm going to study this issue." This is what you
told me right here on this program. "I'm going to study it. I'm going to
talk to the other governors."

And I said to you, "The only solution, Governor, for this, in your
state, is to call out the National Guard to back up the border patrol. And
to basically seal off San Diego and Imperial counties so that the illegals
will have to go elsewhere. Now, do you agree with my assessment now that
you know, or have you found another way?

SCHWARZENEGGER: Well, I think that your idea might be good. The only
thing is it won't work. Because, you know, sealing off the borders, this
is not the only place where undocumented immigrants can come from. They
can come from other states, too. They can first enter other states and
they can come through California. So that wouldn't really solve the

I think what we ought to do is we ought to really all get together and
inspire the federal government to just do a better job and to come up with
a permanent solution. And the permanent solution is to maybe increase the
amount of Mexicans that can come across or aliens that can — immigrants
that can come to America and work.

Because it's obviously — many, many companies and farmers that are
screaming and saying, "Hey, let them come in."

O'REILLY: Listen, we're for that.

SCHWARZENEGGER: Cheaper work and so on.

O'REILLY: But as you said...

SCHWARZENEGGER: I'm for it, too. But we need to do it legally and we
have to have the federal government get control over it.

O'REILLY: Yes, but you know how — the federal government has been
apathetic. It's been apathetic.

SCHWARZENEGGER: It is pitiful, because...

O'REILLY: I know.

SCHWARZENEGGER: ... they're in denial. They act like it doesn't

O'REILLY: I know. But you said something earlier in the interview.
You got to stop the bleeding first. And by stopping the bleeding in
Imperial and San Diego counties, I think you would improve your state.

But let's go on to one more question. Do you like this job? I just
think politics, what I do, because it's kind of politics, is so nasty now.
It's so awful. You're attacked personally. Your family is attacked. You
are mocked and scorned.

No. 1, do you like it? And No. 2, is it worth it?

SCHWARZENEGGER: Well, first of all, I think it goes back to the same
question that I got many times when I was in body building. How could you
train five hours a day? How could you lift 50 tons of weight? How could
you do the same sit-ups every day?

And I always said to people, "I don't really care. Because I see very
clearly my vision in front of you. To go after and be the best body
builder in the world."

And it's the same thing with this job here. It doesn't really matter
what it takes to get there. For me, the great joy comes, first of all, to
give something back to the state of California, to give something back to
my country. Because everything that I've gotten is because of California.
It's because of America. This is the greatest place in the world. So this
is my time to give something back.

And for me, the joy of knowing that we can improve the state. We
already have turned the economy around, created all these jobs, created
extra revenues and seen the state functioning again well. And now to go to
the next level, to create the reforms that we can rebuild California.

All of this is fun work and very challenging. Of course it is a
brutal business. Of course people will attack you. That's a given. And
there's nasty articles and so on, but I'm going to grind it out, because
I'm going to go reform California and I'm going to rebuild and build a
great future for our state.

O'REILLY: All right. Well, if we can help you out, Governor, man,
you just come right to us, because we like you and we appreciate you coming on the program.

SCHWARZENEGGER: Thank you, Bill. Thank you, Bill.

O'REILLY: Thank you, sir.

SCHWARZENEGGER: Appreciate it. Thank you.

Content and Programming Copyright 2005 Fox News Network, L.L.C. ALL RIGHTS RESERVED. Transcription Copyright 2005 eMediaMillWorks, Inc. (f/k/a Federal Document Clearing House, Inc.), which takes sole responsibility for the accuracy of the transcription. ALL RIGHTS RESERVED. No license is granted to the user of this material except for the user's personal or internal use and, in such case, only one copy may be printed, nor shall user use any material for commercial purposes or in any fashion that may infringe upon Fox News Network, L.L.C.'s and eMediaMillWorks, Inc.'s copyrights or other proprietary rights or interests in the material. This is not a legal transcript for purposes of litigation.