Waco, TX — Though he recognizes the fiscal difficulties and political challenges associated with competing in California in November, Sen. John McCain said Monday he will “insist” on campaigning in the Golden State.

“It’s the biggest state in America. I think as a Western Senator I understand their issues. I think the environmental issues are very important in California. I think I can appeal to the Hispanic vote, I think I can appeal to the Asian vote, I think I can appeal to the independent voter–which is a larger and larger percentage of registered voters,” McCain said aboard his “Straight Talk” bus after a townhall meeting in Waco, TX. “I just want to compete in California, and I understand the drawbacks of that, the cost of media, and all of those aspects of it…I don’t think, as a candidate, that I want to say that we’re not going to compete in the largest state in America, which is next door to my home state of Arizona.”

McCain also suggested yesterday he would try to compete in New Jersey. (audio from bus below)

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While a Republican has failed to win California since 1988, GOPers have long wanted to paint the state red again. Most recently, Karl Rove advised then-Governor George W. Bush to make a significant effort there in 2000 and received some backlash after Dubya still lost by 12 percent and more than 1.2 million votes in the state.

While senior campaign advisers said they believe they will start with an edge among Golden State Hispanic voters because of McCain’s leadership on the immigration compromise (and will also have an advantage within the group if Obama is their Democratic rival), they also acknowledge privately that winning California will be challenging.

At worst, they say a McCain push in the state would force the Democrats to defend what should be safe territory.

However among other issues, the presumptive GOP nominee will be at a severe financial disadvantage (outraised almost 4:1 by Clinton and nearly 5:1 by Obama in February alone) and California is a very expensive paid media state. Given that McCain will likely have to play defense in some of his own red states as Obama and Clinton have said they are intent on competing in the south and mountain west, the AZ Senator’s financial resources will be limited.