Schwarzenegger names team for transition in California

SANTA MONICA, Calif. -- Gov.-elect Arnold Schwarzenegger introduced key members of his transition team Thursday, saying the first thing they would do is conduct an audit to find out just how serious the state's deficit is.

He also called on Gov. Gray Davis not to make any more appointments or sign legislation in the waning days of his administration, although Schwarzenegger acknowledged it is Davis' right to do so.

"I would like it really if he doesn't sign any more bills, as far as that goes," Schwarzenegger said. "But we will be working on that, and I'm absolutely convinced that when the governor says that he wants to have a smooth transition, that we will in fact have a smooth transition. And I am looking forward to that and the process has already begun."

Schwarzenegger, who will take office as soon as the results of Tuesday's recall election are certified, said his first priority will be investigating the state's finances. The Republican said the state's budget shortfall for next fiscal year may have risen to at least $10 billion.

"One of the first things we have to do is audit. Open up the books and let the people look inside. Let the sun shine in," Schwarzenegger said at a news conference at a Santa Monica hotel.

Schwarzenegger also introduced Rep. David Dreier, R-Calif., who is heading his transition team, and the two said they hoped to select a broad group of Democrats and Republicans to help them.

The first name they announced was the team's finance director, Donna Arduin, who most recently was budget director for Florida and is known as a fiscal conservative.

Schwarzenegger has vowed to immediately repeal the recent tripling of the state's car tax and to preserve educational programs as he trims the budget.

In the meantime, Davis met Thursday afternoon with his cabinet members, congratulating each one and asking that they cooperate with Schwarzenegger's team.

"They may need our help and if they ask, I want you to provide it," said Davis.