Fiorina Joins Schwarzeneggers Team

Arnold Schwarzenegger taps HP Chairman Carly Fiorina to be part of his transition committee.

Arnold Schwarzenegger has tapped Hewlett-Packard Co. Chairman and CEO Carly Fiorina to be part of his transition committee as he prepares to assume the governors job in California.

In a prepared statement, Fiorina said she was honored to be part of the team that will help Schwarzenegger, a Republican, take over for Democratic Gov. Gray Davis, who was kicked out of office by voters Tuesday in a recall election.

"We believe a healthy business environment is critical to HP [based in Palo Alto, Calif.] and every other California employer, large or small," Fiorina said. "The state is facing a unique and extraordinary set of challenges and opportunities to improve Californias competitiveness."

Davis was voted out of office 11 months into his second term, and leaves Schwarzenegger a state that already was hit hard by the dot-com bust and now is reeling from a budget deficit of more than $8 billion. Legislators in a politically divided statehouse must now decide among tough choices—including increasing taxes and slashing services.