Schwarzenegger: Still no budget, still no RNC

Gov. Arnold Schwarzenegger reiterated Wednesday what he's said before: No state budget, no attendance or speech at the Republican National Convention next week for him.

Speaking at a Los Angeles press conference with representatives from California cities and counties on the need for a state budget, Schwarzenegger said he remained flattered to be invited to give a prime time speech at the convention next Monday, but was focused on matters closer to home.

"To me, the most important thing right now is the budget crisis," Schwarzenegger said.

He did not respond directly when asked for his thoughts on Democratic legislators who stole away to Denver to attend parts of the Democratic National Convention this week.

Instead, his response to that question tied into the reason for the press event: to encourage legislators not to pursue a budget solution that involved borrowing, specifically in this case from local governments and transportation.

"It just shows again that the solution they have in Sacramento is just a temporary solution," he said. The governor has called for cuts, a temporary sales tax increase, a spending cap and a rainy-day fund as vital components of a budget package.

The state budget is 58 days overdue, and the impasse will hit a record length unless it's resolved before Sept. 5.

Schwarzenegger also said approval of Proposition 11, which deals with redistricting, is a needed component off the reform he seeks.

He pointed out that because legislators have drawn their own districts, many of them tend to come from the ideological ends of their respective parties, making compromise more difficult.

He used as an example a story in The Sacramento Bee Wednesday about the $500,000 donation the California Correctional Peace Officers Association made to a political committee for State Sen. Pro Tem Don Perata (D-Oakland), reportedly to battle Proposition 11.

"That money exchange is terrible for the people of California, but good for Proposition 11," he said.