'This Week' Transcript: Arnold Schwarzenegger

So I think it's horrible to have to move around. Let's open up the primaries, no different than when you have a mayoral race. Like in Los Angeles right now, Villaraigosa -- there's an open primary. There's an open election, where you have the first two -- the two top candidates then have a run-off election. That's the way to do it. It doesn't matter which party it is.

If the people choose one, if they're Democrat, then so be it. If they choose the Republican, if they choose a Democrat and a Republican, and they have them go for the run-off election, that's the way it ought to be. STEPHANOPOULOS: Yet you still call yourself a Republican. And you're here with a lot of your fellow Republican governors this week. And I wonder what you think the prescription is for the Republican Party to go now from minority status to get the majorities back in the House and the Senate, to get the White House back.

SCHWARZENEGGER: It's very simple. Listen to the people. The best thing you can do, no matter what party you're in, listen to the people. In California, we know that 64 percent of the people have said that we should solve this budget crisis, the $42 billion deficit, with tax increases and with spending cuts. So what I have done is what the majority of Californians want to do.

The Republican there were not in touch with of what the majority of people want to do in California. And the same is nationwide. You've got to listen to the people. If the nation is screaming out loud, "We need health care reform. We want to have universal health care. We want to have everyone insured. We want to bring the costs down. We want everyone to have access." I mean, that's what they want; that's what you do.

STEPHANOPOULOS: Even if it requires tax increases?

SCHWARZENEGGER: Even -- if -- no, even though it maybe is against your principles or philosophy, you still have to go, because that's what the people want you to do. And the same is in California. So I will go again after health care reform. I will be going after, you know, education reform, which, of course, we've got some good one, because of the categoricals dropped by $6 billion, our categoricals, so more money goes into the classroom now.

So you've got to do what the people want you to do rather than getting stuck in your ideology.

STEPHANOPOULOS: There was also a report on the Web site TMZ this week about your own future. It said you might be taking a bit part in Sly Stallone's movie. Then you came back the next day and said, no, I've got to get through the budget crisis first. You're through the budget crisis now. Are you going to do it?

SCHWARZENEGGER: Well, no. As you know, since I've become governor, I've done three cameos when friends asked me. And Sly asked me if I would do a cameo. I said, "Of course I'll help you and do a cameo. There's no two ways about that."

But it had nothing to do with the budget crisis or with the budget negotiations, because that will be done some times in April, May or June. I have no idea.

STEPHANOPOULOS: OK. So you still might do it?

SCHWARZENEGGER: Oh, yes, no, absolutely. I enjoy him. He's a terrific director and writer and a great actor. And we hang out a lot of times together.

STEPHANOPOULOS: How about after 2010? You're term-limited. Do you run for Senate or do you go back to the movies?

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