'Perfect' is the enemy of 'good enough'.

Well, California used to be in the dream-making business, and unfortunately what's happened I think we're now in the dream-breaking business.

We also need to reduce corporate tax rates. This applies to small, medium and large businesses. At 35 percent, we have the second highest corporate rates in the world. It restricts the growth of small enterprises that need to plow capital back into their businesses and forces companies and jobs to move overseas.

If we don't rededicate ourselves to education with the same attitude Americans have applied to going to the moon and fighting wars, the results will be profound. We will gradually lose our successful workforce.

Silicon Valley is 130 miles from Sacramento, but it might as well be a million miles away given how it operates.

People ask me, how is managing in the New Economy different from managing in the Old Economy? Actually, it's a lot the same. It's about the financial discipline of the bottom line, understanding your customers, segmenting your customers by their needs, and building a world-class management team.

Because what happens is, as the economy suffers, tax revenues go down. But unlike businesses, where at least your variable costs go down, in government your variable costs go up: unemployment insurance, workmen's compensation, health care benefits, welfare, you name it.