Open the audit books, Arnie orders his new team

California’s governor-elect Arnold Schwarzenegger introduced key members of his transition team and gave them his first order – to conduct an audit to find out the true extent of the state’s budget deficit.

The Terminator star also called on Governor Gray Davis not to make any more appointments or sign legislation in the waning days of his administration.

“I would like it really if he doesn’t sign any more bills, as far as that goes,” Schwarzenegger said.

"But we will be working on that, and I’m absolutely convinced that when the governor says that he wants to have a smooth transition, that we will in fact have a smooth transition. And I am looking forward to that and the process has already begun.”

But in a sarcastic reply, Davis’ spokesman Steven Maviglio said Davis would continue to make appointments and act on legislation. He added, ”The governor-elect might be interested in learning that bills that Governor Davis does not act on before October 13 automatically become law.”

In California, the governor may veto a bill, sign it or allow it to become law without signing it.

Schwarzenegger, who will take office as soon as the results of Tuesday’s recall election are certified, says his first priority will be investigating the state’s finances. The Republican said the state’s budget shortfall for next fiscal year may have risen to at least €9.2bn.

“One of the first things we have to do is audit. Open up the books and let the people look inside. Let the sun shine in,” Schwarzenegger said at a news conference at a Santa Monica hotel.

Schwarzenegger also introduced Congressman David Dreier, who is heading his transition team, and the two said they hoped to select a broad group of Democrats and Republicans to help them.

Schwarzenegger has vowed to immediately repeal the recent tripling of the state’s car tax and to preserve educational programmes as he trims the budget.

Meanwhile, Davis met his Cabinet members, congratulating each one and asking that they co-operate with Schwarzenegger’s team.

“They may need our help and if they ask, I want you to provide it,” said Davis.

Davis had about 100 pending appointments to make, 15 of which require Senate confirmation, Maviglio said.