In his inaugural address, the Governor called for the Legislature to move past bi-partisanship to one which he coined post-partisanship, which is having both parties "actively giving birth to new ideas together," rather than each bringing their proposals to the table and then working out the differences.

The Legislature and the Governor came to an agreement relative to prison reform, tribal gaming compacts, flood protection, disaster relief, gang violence prevention, and moving the state presidential primary to February 5, 2008. At the time of this writing, the Governor vetoed the major health insurance legislation, AB 8 (Nunez and Perata). The Governor, on September 11, called a special legislative session for the Legislature to consider water development and health care reform.