Schwarzenegger friend’s fate still on hold

After a contentious, two-hour hearing of the Senate Rules Committee, the
political fate of one of Gov. Arnold Schwarzenegger’s closest advisers
remains up in the air.

David Crane, Schwarzenegger’s top economic adviser and close personal
friend, was grilled by Democrats Wednesday, who questioned Crane about his
close relationship with the governor and his credentials to serve on the
powerful CalSTRS board. The board directs the investment of billions of
dollars in teacher pensions.

In a surprise move, Crane testified that he was willing to give up his post
as economic adviser if he were confirmed to the board. The decision, which
Crane informed Senate President Pro Tem Don Perata, D-Oakland, of yesterday,
caught the pro tem off guard, causing him to postpone a vote until next
week.

“I was absolutely convinced that he was conflicted,” said Perata after the
hearing. “I told him I thought he should stay as the governor’s adviser on
economics.