He has no where to go. We elected him to change things. He came to us with the tools he needed to fix this mess, and the people voted them down. He cannot do anything. The Unions own this state and will drive it into bankrupcy come hell or high water.
They are mostly democrats, socialists, and communists. This once golden state is doomed to it's watery grave.
The Governor proposes the budget, has line-item veto power, and final approval authority. This latest budget proposal represents an increase in general fund spending of 37% since taking office. This budget is Arnold's budget, not the legislatures, the democrats, or anyone elses. When the legislature gets done with it, it will grow a bit, and Arnold currently has the tools (line item veto) to correct that. (But he hasn't used it before, so I don't expect him to in the future).
The "tools" he proposed to "fix" the mess (Prop 76 mid-year corrections) would not change any of this. Additionally, Prop 76 would have only allowed him to borrow more money and defer more expense. He has not used any of the tools he has to reduce spending, only to increase it. To say that he can do nothing is naive, at best.