This news wherein a few days after the general election and a few days after actively campaigning on McCain's behalf California's Governator, Arnold, immediately called for tax increases and government cuts I think it says more about the speciousness of campaign claims than anything else. The politics of campaigning doesn't necessarily reflect even the most remote activities of governing. The call for taxes of course has created a lot of serious disagreement. In scanning the tax increase aspect it is both short term (limited time frame), and focused on selected sales tax items and services...but also covers a lot of territory. The cuts are pretty widespread. On a different level, Schwartzenegger, has been mentioned by some who have been speculating and writing as one of the possible GOP appointees by Obama.
More on the Governator's emergency proposal. It is an emergency effort focused on both cutting expenses and increasing taxes. Schwarzenegger and the state financial people see the state running out of money by spring 2009. Very severe and dramatic responses IMHO.