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He also announced that Nationwide''s property-casualty companies once again reached record levels of assets and policyholder surplus in 1998.

But in recent months, such talk has diminished considerably. Schwarzenegger showed during the recall that conventional politicians in a hurry-up campaign are no match for someone of his outsized personality. But governing has proven far different. He has been forced to pare back much of his second-year reform agenda. His poll numbers are sagging, and newly emboldened Democrats are challenging natori the governor at every turn. Now, the question is whether Schwarzenegger can make the transition from a cartoon-like character, all swagger and bluster, into a political leader capable of using his fame and considerable charm to achieve something lasting and meaningful.

So far, the left-wing interest groups promoting kook legislation like this have been making more demands on the governor than have the conservatives who voted him into office. "If we want Arnold to succeed," advises Lew Uhler, "fiscal conservatives better start holding the governor to his budget promises." The key is for the governor to recognize that the members of the Democratic leadership are his adversaries, not his allies. He has to be willing to neutralize them by going over their heads and directly to the voters who put him in office--just as Reagan did so effectively. And no one would be better at it: Arnold is the best GOP communicator since the Great Communicator himself.Given the leftward tilt of California politics, Arnold has only two real assets: the bully pulpit and the veto pen. If he uses both, this Austrian-born Mr. Universe natori has a unique chance to break the Left''s vise grip on Sacramento--and put the bloom back on the state that was once, and not so long ago, golden. An Instinct for Success: Arnold Spohr and the Royal Winnipeg Ballet natori BY MICHAEL CRABB. TORONTO, CANADA: DANCE COLLECTION DANSE PRESS/ES. 2002. 288 PAGES, ILLUST. $26.95. ISBN 0-929003-45-4.

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