Governor Schwarzenegger Drops Support for Offshore Drilling Following Gulf Oil Spill

Disturbing images of the Gulf oil spill have caused California Gov.

Arnold Schwarzenegger to change his mind about allowing new drilling for oil off the California coast. The governor withdrew his support for a project expected to raise $100 million for the cash-strapped state, telling reporters: "If I have a choice between the $100 million and what I see in the Gulf of Mexico, I'd rather figure out how to make up for that $100 million."

His new stance all but guarantees the demise of the proposal by a Texas oil company to allow the first new drilling in state waters in 40 years.

The governor had previously argued that the state, which is facing a $20 billion budget shortfall, should approve the plan to raise as much as $100 million a year in new revenue.