Governor Talks Budget and Water in Fresno

Fresno - Governor Arnold Schwarzenegger makes an appearance in Fresno Thursday, saying the spending must stop, and no new taxes.

The Governor was greeted by a handful of protesters outside the Fresno Chamber of Commerce.

"People don't live off IOU's, people can't pay the rent off of IOU's, people need to be saved and he's not doing his job," said Mariam Alvarez, a SEIU member and protestor.

California sent 28 IOIU's Thursday, mostly to small businesses that have contracts with the state.

Democrats want new taxes to close the deficit, Republicans want broader cuts.

The Governor blames legislators for not compromising.

"Protecting the special interests that benefit from our dysfunctional system was more important to them than solving our deficit and finally living within our means," said the Governor while in Fresno.

Meanwhile, residents point the finger at the Governor.

"By Arnold playing these partisan politics, he's prolonging America's recession," said Jesse Lifton, a protestor.

"I will not sign a budget that has tax increases or partial solutions, I will only sign a budget that deals with the entire $26 billion deficit," said the Governor.

The Governor also talked about the Central Valley's water crisis, saying people mistake him, sometimes, for an action hero in that matter.

"Where you go in there, kick some butt, turn o the water, water flows out, and water flows to the central valley.{} I wish I could do that, but that's not reality.{} The reality is there's a federal judge that says we have to turn off the water," said the Governor.

Today the governor also announced more water is on the way to the valley.

The department of water resources will release up to 100,000 acre-feet of water to Valley farms.

The release represents a "water loan" from the State Water Project, on the condition of "repayment" at the end of the summer irrigation season.