Hopefully he won't go to war with education, nurses, state workers and all the other people he tried to screw over before because he can't run again!

No he won't and you don't need to worry. Because of two reasons:
1. Arnold has no plans to retire after serving out his term. He will simply look for other ways to "serve".
2. California's schools are in for a $6 billion windfall over the next five years. OCRegister
The article is a bit, um... negative, but that should not cloud the central message - You don't need to worry. 

You know if the funds are not appropriately being used then they need to go elsewhere, as far as  I am concerned. I recently moved from a state where they claim that they are not making enough money as a teacher, but yet their test scores are not warranting a raise as far as I see. when the district is one of the lowest in the state test score wise and the teacher are paid the median salary for the state, then I should be able to expect more from them for the pay then they are providing.

I am sure that if there is a reason for removing the funding then it is justifiable.