'This Week' Transcript: Gov. Arnold Schwarzenegger and Gov. Edward Rendell

SCHWARZENEGGER: I think there's no two ways about it, that we in this country have a major problem with spending on ongoing programs, and especially on promising people things that we can't keep. The pension in a disaster in California and in the whole nation. We have pension obligations that we cannot fulfill. We have health care obligations, unfunded obligations that we cannot fulfill.

I mean, in California, we're talking about hundreds of billions of dollars, and it's very dangerous. So those are the areas that people are upset about, and those are the kind of things we have to stop.

But one should never get confused between spending money and investing in the future of America. And what we are talking about, with our partnership, is about is investing in the future of California. We have made a commitment in California of $70 billion since I've come into office. And right now, the legislature, after four decades of arguing, have come together, Democrats and Republicans, and have made a commitment to $11 billion in bonds for water infrastructure. Because what has happened this last year in the valley, having 40 percent unemployment because of the lack of water, it was devastating.

So the California people know the difference, and that's why they have approved of those infrastructure packages, including the high-speed rail, the $10 billion. And they will also approve in November the water infrastructure, which is very important so we have water in the future.

So we've got to rebuild our state, and the whole country has to rebuild itself. Because if you think in all of the -- in history, I mean, all the great civilizations all became great because they had great infrastructure. If you think about the Persians, of building the waterways and the paved roads. The Romans, they had the aqueduct system of delivering water and the sewage systems. The Egyptians, they builtÿ2Dÿ2D

(CROSSTALK)

RENDELL: How many people (inaudible) Great Wall of Chinaÿ2Dÿ2D

(CROSSTALK)

MORAN: ÿ2Dÿ2Drun out of time here, but I have one more question.

SCHWARZENEGGER: But it is -- I just want to say that the decay and the falling of those empires and of the civilizations is directly linked to not keeping up the infrastructure. So we have to be very, very careful in America to keep up our infrastructure, not only to maintain it, but to build, because it is our ports, if it is our freeways, if it is our airports, and all of those things needs to be rebuilt.

MORAN: One more, briefly. The health care summit coming up. Do you expect anything out of this? What should Republicans do? They are coming to the table saying the president has got to take this bill off the table to begin with before they even talk? Just a couple of seconds on this.

SCHWARZENEGGER: Well, first of all, I think that Mrs. Obama is doing something very smart right now. She's gotten into the obesity summit business, and I think that if you do health care, you cannot do health care without prevention. I think the prevention part is the biggest and the most important part of health care reform. And so, for her to talk about obesity, which is a huge problem, because it creates the diabetes and all the health problems in children. We make our children -- they are now 10 pounds heavier today than they were 20 years ago. So all of this I think going in the right direction.

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