I think it is a joke that Arnold got in. I for one did not vote for him. The two main reasons why I didn't vote for him is because he refused to do any live unpromted debates, and he gave no plans on how he was going to solve the states problems only that he would solve them. Not doing any unprompted debates doesn't show too much confidence or awareness on his part to me.
As far as the state's current financial situation, I don't put all the blame on Davis. My American Government teacher from my community college used to work in D.C. and in Sacramento. He said that every year, Califonia does not get its correct percentage of money back from the federal government each year from taxes. Sure Davis could have pushed for it, but if Washington hasn't done anything in the past 5+ years, I wouldn't expect them to move any faster.