"It is very hard when you have to increase taxes," Schwarzenegger said. "I don't want to do it. I hate taxes. I hate the word taxes and all of those things. But there's certain times when you have to forget about the ideology and, you know, all of this and fix problems."
The Governor also addressed the challenges facing Republicans coming out of the national election. While he was unable to join his colleagues at the Republican Governors Association conference this week, he argued that his party has lost sight of what's important to the future of Americans.
"So many times there's dialogue about, you know, we have to go back to our core values.What is that? What is core? How far does core go back in history in America, the word 'core'?" he asked.
"Does it go back 30 years? Does it go back 50 years? Because we know that Teddy Roosevelt talked about universal health care. So [they've been] off the core for a long time... so I think it's all nonsense talk. I think if they just talk about one thing, [it is] what do we need now?"
Instead, Schwarzenegger argued the GOP should focus on rebuilding the nation's infrastructure.
"We need to rebuild America, fix the bridges, fix the highways, fix the buildings, tunnels and all of those kinds of things we need to do," he said. "And then we have to go and create great relationships with our partners overseas, with the world, and we have to build those relationships again. And we have to take care of health care. We have to take care of our environment. And we have to build an energy future. Those are the things that people want right now."
On the Obama transition so far, Schwarzenegger commented on rumors that Sen. Hillary Clinton, D-N.Y., is in the running to become secretary of state. The President-elect and his former rival met privately Thursday to discuss the position.
"I think she is a very very bright woman and very experienced. I think this could be a great move," he said.
But he also noted that it's equally important for the president to have a good working relationship with all the members of his Cabinet.
"When it comes to those kinds of positions, what is equally as important, and I know with my Cabinet, what is equally as important as who is qualified, is who can you work with. Who can you sit down with and really get in there and start becoming a partner [with] that sees things the way you see it. And also that you maybe want to learn from that person and admire that person so much that you want to pick up some pointers and learn from that person, so that they together can go out and do this."