Business groups in the Golden State are cooling to Gov. Arnold Schwarzenegger, reports the Los Angeles Times.

Once seen as the knight who would slay the dragon of high taxes and over-regulation, groups like the California Chamber of Commerce think it was a mistake to put so much faith in the governor and his plans for political reform. The various propositions pushed by Schwarzenegger at the last election all failed despite $50 million raised by business interests to support them.

Now business groups say they plan to support moderate Democrats as well as Republicans in hopes of tempering the liberal political climate in the state.

Supporters of the defeated reforms said they would have brought both parties back to the political center by eliminating districts drawn by incumbents to favor themselves. They argued that districts drawn to favor one party or the other create extreme polarization because the candidates’ main aim is to win their party primary. And in those elections only the most ideologically-committed voters vote.