He said he met with 20 to 30 people every day while making time for weight lifting and riding a stationary bike in his Sacramento hotel room each morning. ''People who know me really well thought that this would be pure torture for me because I don't like to keep schedules, I like to live in an improvisational style,'' he said. ''Appointments are always a no-no. Planning ahead is a no-no. Here you have to do all the opposite. Here you need to have a plan.''

He said that after the budget was passed he planned to turn his attention to revamping the state's troubled energy supply system and to streamlining state government, which he refers to as ''blowing up boxes.''

Flashing a jade ring as he talked, he ruminated on his introduction to government, in the 15-by-15-foot courtyard tent where he does much of his private business. It is decorated with rattan chairs, orchids, a humidor, a mirror, floor fan and books written by Mr. Schwarzenegger.

There was an expensive, half-burned cigar in a Baccarat crystal ashtray. The tent itself was placed precisely 20 feet from the doors leading to the governor's offices to comply with state smoking regulations.

Mr. Schwarzenegger said business lessons he learned in Hollywood applied directly to running the nation's most populous state. Success, he said, requires a combination of discipline, optimism, humor, a willingness to share credit and good cigars and an ability to cut back-room deals.

He defended his practice of negotiating key sections of important legislation and the budget behind closed doors or in his smoke-filled tent.

He learned it all in Hollywood. After all, in Hollywood, he said, ''For the public you write agreements and then you have another agreement they put in the safe that no one is seeing -- the thing with all the perks and the percentages because they do not want to break the mold and all of a sudden now here's a guy who gets instead of 15 percent, 20 percent in the gross. Then that'll be kept in the safe.