When Governor Schwarzenegger took Office in November 2003, he inherited an economy in crisis.

Worker’s Compensation costs were at all-time highs and shakedown lawsuits plagued small businesses. Combined with the dot-com bust, these conditions drove companies and small firms out of state…or out of business altogether.

The results were devastating. California lost over 350,000 jobs between January 2001 and July 2003 – driving up unemployment, causing record budget deficits, and dropping our bond-rating to near-junk status.

Some of California’s leaders thought the answer to this problem was to raise taxes on California’s businesses and working families, but Governor Schwarzenegger knew that California would only recover by bringing small businesses and industries back to the state.

Governor Schwarzenegger fixed Workers’ Compensation – cutting premiums by almost 50% by combating fraud and demanding fast and effective medical treatment for injured workers. He took on the state’s “Sue Your Boss” law to protect small businesses and vetoed legislation to expand Government at the cost of our businesses and to make tax increases easier.

And he put over $13 billion back in our pockets by repealing the Davis car tax.

The Governor’s commitment to economic growth has paid off for California’s families.

With the State as a partner rather than a hindrance to California’s businesses, we’ve added more than 570,000 jobs under Governor Schwarzenegger and cut unemployment to the lowest level in five years.

Job growth has been particularly strong in fields like Financial and Business Services – good, high-paying jobs for our residents. Income is up, economic output is at an all-time high, and California is home to some of the nation’s fastest-growing job markets.

Tax revenues are up, our operating deficit has been cut by over three-fourths and our credit rating has been consistently raised Wall Street – giving us the opportunity to launch the historic Strategic Growth Plan, which will rebuild California’s roads, schools, and levees and add about 2 million more jobs for Californians.

And our economy has continued its vibrancy in 2006. More Bay-Area CEOs are planning to hire local workers than anytime since the dot-com bust, Southern California businesses have the highest confidence levels in a year, and respected forecasters like the Los Angeles Economic Development Corporation have predicted that California will set an all-time record in exports, economic output, and employment in 2006.

To ensure this continued growth, the Governor remains committed to supporting our economy.

He directed state agencies to increase small business participation and engaged the U.S. Small Business Administration to help California companies find federal loans, training, and other helpful programs. He continues to oppose tax-increases, has committed to making California the center of the environmental technology industry, and is making record investments to educate tomorrow’s workforce.

Governor Schwarzenegger knows that, with Government as a partner, the sky’s the limit for California’s businesses and workers.