Gov.'s Candid Moments Caught on Audiotape

Margita Thompson, a spokeswoman for Schwarzenegger, issued this statement: "This is a small part of a long conversation that is taken totally out of context. The governor respects every member of the Legislature and holds them in the highest regard. It is not uncommon for him to have fun and joke with the members while they're working, especially during very tense negotiations."

The meeting probably took place in the Ronald Reagan Cabinet Room, the governor's de facto office that adjoins his smaller official quarters. The conference room faces east toward lush Capitol Park and has a long conference table that serves as a giant desk. The sword from Schwarzenegger's movie "Conan the Barbarian" rests on a nearby table.

Participants were Kennedy, who was Cabinet secretary under former Gov. Gray Davis; Gary Delsohn, a former Sacramento Bee reporter and author who recently became Schwarzenegger's chief speechwriter; and Walter Von Huene, a former TV director who is a close friend of the governor. Von Huene, a fellow cigar smoker and chess partner of Schwarzenegger, also serves as an informal speech coach.

Schwarzenegger's voice is heard first on the recording. He teases Delsohn and lavishly praises Kennedy as the conversation begins, suggesting that he knows the recording device is on. He calls Kennedy a "major, major champion."

"Got that on tape?" Kennedy says.

"It's on tape," Delsohn answers.

The free-flowing conversation took place amid negotiations over the governor's proposals for a giant public works package. At the time, Schwarzenegger's own party was resisting the sheer size of the plan -- the largest in state history -- which entailed tens of billions of dollars in borrowing. They eventually settled on a package worth $37 billion, placed on the November ballot.

On the recording, Kennedy and Schwarzenegger review an exchange between Kennedy and McCarthy, the Central Valley lawmaker who was then the lead negotiator for the Assembly's Republicans.

"You really pissed him off," Schwarzenegger said. "But you know something? You pissed him off because it hit home. That's why it pissed him off. People always get irritated; always when you hit something that is the truth, that's when people flame out."

Schwarzenegger says he had to control himself, and tried to be "really gentle" in the day's negotiations with his fellow Republicans. He calls it "dancing the dance."