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# Schwarzenegger toasts success in SM
- URL: https://www.smdp.com/schwarzenegger-toasts-success-in-sm/
- Published: 2004-03-03T16:00:00.000Z
- Updated: 2026-10-23T03:53:35.000Z
- Author: John Wood
- Tags: Government & Politics, Santa Monica, #archive-import

*Billion-dollar bond passes statewide on ‘Super Tuesday’ despite controversy*

Surrounded by hundreds of invited guests in a Santa Monica hotel ballroom, Gov. Arnold Schwarzenegger on Tuesday night celebrated the passage of a controversial $15 billion bond.

Schwarzenegger, who spent $8.5 million campaigning for his proposal, credited strong bipartisan support for the victory and pledged to carry that consensus forward. He plans next to tackle issues like workers compensation reform, the state’s energy crisis and environmental problems.

“You are the greatest power lifters in the world, you did it,” he said in a victory speech at the Fairmont Miramar Hotel on Wilshire Boulevard and Ocean Avenue. “This is tonight, the people’s victory... We have taken away the credit cards from the politicians in Sacramento. And we took them away and tore them up and threw them away.”

Listed on the ballot as Propositions 57 and 58, the governor’s plan involves borrowing $15 billion and setting up an $8 billion reserve. It also requires the state to pass a balanced budget in future years.

More than 100 print and television journalists were on hand for the election night event, which was held in the Miramar’s ballroom. Schwarzenegger also used the hotel last month to push the proposal with U.S. Sen. Diane Feinstein, a leading Democrat.

It’s just that bipartisan support that Schwarzenegger said he is so proud of. More than 250 organizations — from taxpayer groups on the left to unions on the right — threw their weight behind the twin propositions, which passed by a strong margin.

State Controller Steve Westly, a Democrat and co-chair on the campaign in favor of the propositions, said party affiliation wasn’t an issue.

4F2,“I did it because it’s the right thing to do,” he said. “People call us the political odd couple... Here’s the real political odd couple — the breadth and diversity of groups that came together to do the right thing.”

The success of Schwarzenegger’s propositions bodes well for his political future. Joel Fox, a political consultant who was instrumental more than 20 years ago in the campaign for Proposition 13, said the overwhelming success of Schwarzenegger’s plan is a sign to the state Legislature that he can win public support if faced with a political deadlock.

“It’s going to hit, if they don’t do anything about worker’s comp, so they better view it as a hammer,” Fox said as votes were being tallied.

Former Gov. Pete Wilson agreed. He said the success of Props 57 and 58 show that Schwarzenegger has clout with the voters.

“It’s not the only test, but it says a lot about the type of person he is — forceful, honest, direct,” Wilson told reporters.

Schwarzenegger was accompanied on stage by more than 30 key supporters, including Los Angeles Mayor James K. Hahn and California Police Chiefs Association President Cam Sanchez. At the close of the victory speech, a blue banner dropped behind the group on stage that read, “California is back on track.”

At presstime, with 50 percent of California’s precincts reporting, the proposal to issue the bond, Prop 57, had 61.5 percent support. Prop 58, which would require the state legislature to pass a balanced budget and set aside a reserve, had 70.4 percent support. Both of the ballot initiatives must pass in order for either to take effect.

The initial voter returns were much closer on Prop 55, a proposal to issue $12.3 billion to fund repairs to schools. Support for that proposal was 50.3 percent of the early vote.

Prop 56, which would have allowed the California Legislature to pass a budget with a 55 percent majority, instead of the two-thirds currently required, was losing with only 35.9 percent of votes.

![](https://storage.ghost.io/c/55/9f/559f9abc-8372-4a2e-8c2d-27386da4e363/content/images/2026/10/030304-02_01-7.jpg)

About 100 journalists — including more than 30 news cameras — covered the election night celebration at the Miramar Hotel in Santa Monica. (Photo: John Wood/Daily Press)

![](https://storage.ghost.io/c/55/9f/559f9abc-8372-4a2e-8c2d-27386da4e363/content/images/2026/10/030304-02_02-7.jpg)

About 100 journalists — including more than 30 news cameras — covered the election night celebration at the Miramar Hotel in Santa Monica. (Photo: John Wood/Daily Press)

*Originally published in the Santa Monica Daily Press print edition on March 3, 2004.* [Read the original PDF.](https://s3.us-east-1.amazonaws.com/smdp%5Fbackissues/030304.pdf?ref=smdp.com)