Arnold as a moderate Republican would make a good president. As he found out in California, dealing with a Democratic controlled house and assembly is very difficult to get things done, in order to balance out the California budget. With the decrease in property taxes, sales taxes, gas taxes, 2008 and especially 2009 are going to be incredibly tough years for California.
Thanks to Grey David, back when California was doing well, for giing out lots of free healthcare, money to government pensions, huge raises so when the bad times came, we would be in trouble like we are, and have to cut important things like school budgets.