Since This Morning

Letter on Muslim radical roils GOP Senate race -- Terrorism and the Middle East are continuing to roil the Republican Senate contest after a letter written by former congressman Tom Campbell emerged that appeared to contradict statements Campbell and his aides had made about his dealings with a radical Muslim professor. Seema Mehta in the Los Angeles Times -- 3/8/10

Budget veto: Schwarzenegger rejects bill seeking $2.2 billion in cuts -- Rejecting a key piece of last month's push to trim California's deficit, Gov. Arnold Schwarzenegger late Monday vetoed a bill that called for more than $2 billion in spending reductions starting this summer. Denis C. Theriault in the San Jose Mercury -- 3/8/10

Automatic 'yes' votes allow time for back-room dealing at City Hall -- Thanks to voting software, City Council members can hold meetings, give interviews, even grab a smoke while deciding the day's issues. David Zahniser and Maeve Reston in the Los Angeles Times -- 3/8/10

Legislators OK exemptions to furloughs for state workers -- Gov. Schwarzenegger is expected to veto measure that affects employees paid with federal funds or license and usage fees. Jack Dolan in the Los Angeles Times -- 3/8/10

Nearly 300 illegal immigrants arrested in San Diego, Calexico -- Nearly 300 illegal immigrants, some with criminal records, were arrested during the weekend attempting to enter the United States from Mexico in the San Diego and Imperial Valley areas, authorities said Monday. Robert J. Lopez in the Los Angeles Times -- 3/8/10

Lawmakers approve bill to exempt 35% of state workers from unpaid days off -- California legislators voted on Monday to exempt about 35% of state employees from having to take three days each month off without pay, a maneuver the lawmakers and Gov. Arnold Schwarzenegger imposed to help close the state's budget deficit. Jack Dolan in the Los Angeles Times -- 3/8/10

Local governments closing in on initiative to block state raids -- Proponents of a California ballot initiative that would end state raids of city, redevelopment and transit money predict they will collect sufficient signatures well ahead of a May deadline. Lisa Vorderbrueggen in the Contra Costa Times -- 3/8/10

California Public Utilities Commission to announce contract for Smart Meter investigation by the end of this week -- Several consumers in the Bakersfield area and elsewhere complained of skyrocketing electric bills after Smart Meters were installed in their homes, leading to some concerns that the meters were either malfunctioning or intentionally overcharging. Dana Hull in the San Jose Mercury -- 3/8/10

List of California's lowest-performing schools released -- Five schools in Oakland, five in Hayward and one in San Lorenzo are among the 188 statewide who have made a preliminary list of "persistently lowest-achieving schools." The preliminary lists can be found at http://www.cde.ca.gov/ta/ac/pl/. Katy Murphy in the Contra Costa Times -- 3/8/10

State should restart offshore oil drilling, analyst says -- Gov. Arnold Schwarzenegger has pushed for limited drilling off the coast of Santa Barbara in what is known as Tranquillon Ridge. Schwarzenegger's Department of Finance estimates the new oil drilling could generate $1.8 billion for the state over the next 14 years. Capitol Weekly's Anthony York in the Los Angeles Times -- 3/8/10

Teachers' union gives another $500,000 to roll back corporate tax cuts -- The California Teachers Assn. has donated another $500,000 to the effort to repeal new corporate tax breaks set to go into effect later this year. Capitol Weekly's Anthony York in the Los Angeles Times -- 3/8/10

State lawmakers seek to ban unemployment for elected city officials -- Alarmed that a Rosemead city councilman collected unemployment benefits after he left office, state lawmakers moved Monday to close a loophole and prevent such payments. Patrick McGreevy in the Los Angeles Times -- 3/8/10

Schrag: A Missed Day of Action -- If last week’s demonstrations protesting funding cuts to California schools and colleges were aimed at getting media attention, they succeeded magnificently. Given the low number of demonstrators, they got a lot more ink than the turnout was worth. Peter Schrag Cal Progress Report -- 3/8/10

GOP state senator comes out of closet in aftermath of drunk driving arrest -- Sen. Roy Ashburn has been on personal leave since his arrest early Wednesday morning in his state car not far from the Capitol. The arrest touched off rampant speculation about his sexuality after a Sacramento television station reported he had been at a gay nightclub in Sacramento just before he was pulled over by California Highway Patrol officers. Patrick McGreevy in the Los Angeles Times Torey Van Oot SacBee Capitol Alert Patrick McGreevy in the Los Angeles Times Robin Hindery AP E.J. Schultz in the Fresno Bee -- 3/8/10

Ashburn admits, 'I'm Gay' - Asked about his anti-gay voting record, Ashburn said, “I felt my duty, and I still feel this way, is to represent my constituents.” Dan Aiello Cal Progress Report -- 3/8/10

Wildermuth: Triple Tie for First in GOP Senate Debate -- If you listen to the campaigns – something that’s not generally recommended – Friday’s GOP Senate debate resulted in a three-way tie for first. John Wildermuth Fox & Hounds weblog -- 3/8/10

Taxes Increase; Businesses Leave: An LA Case Study -- Word out of Los Angeles on Friday was that the Los Angeles City Council voted to cut business taxes for Internet based firms. In the middle of a catastrophic city budget shortfall? How could that be? Joel Fox Fox & Hounds weblog -- 3/8/10

LAO: AB 32 would cost California jobs -- California’s legislative analyst has opined that the implementation of AB 32, the state law to limit carbon emissions, would cost California jobs, at least in the short term. Dan Weintraub HealthyCal.org Greg Lucas California's capitol weblog -- 3/8/10

Challenge could alter primary vote measure -- Saying a June ballot measure that would change how California's primary elections are held won't deliver on its reform promises, opponents are trying to change it -- and they appear to have allies in lawmakers who helped put it on the ballot. Evan Halper in the Los Angeles Times -- 3/8/10

Packard heir slams GOP Senate candidate, former Hewlett-Packard chief Fiorina -- But this morning, an heir to one of the company’s founders issued a slashing rebuttal, arguing that Fiorina nearly drove the technology firm into the ground. Seema Mehta in the Los Angeles Times -- 3/8/10

Fiorina files to run; DeVore says she's all but done -- Former business star Carly Fiorina formally filed today as a Republican candidate for U.S. senator, putting her name on the June primary ballot. She'll oppose Assemblyman Chuck DeVore and former Rep. Tom Campbell. Rob Hotakainen SacBee Capitol Alert -- 3/8/10

Man charged in sweeping student visa fraud case -- The problem was that Higgins hadn’t registered for any of the courses, authorities said. Rather, dozens of foreign students -- mostly from the Middle East -- were paying him to sit in class, take exams and write papers for them so their student visas would remain valid, according to a charging document filed in the case. Anna Gorman and My-Thuan Tran in the Los Angeles Times -- 3/8/10

Northrop Grumman ending bid for fuel tanker contract -- The Century City company, which is teamed with Airbus parent European Aeronautic Defense & Space Co., has in recent weeks complained that the odds are stacked against its bid for the contract, potentially worth about $35 billion. W.J. Hennigan in the Los Angeles Times -- 3/8/10

Assemblywoman would ban subsidies to NFL -- A San Diego lawmaker is introducing legislation that would ban future public subsidies to NFL teams in California unless the league scuttles its television blackout policy for those clubs. Michael Gardner in the San Diego Union-Trib -- 3/8/10

   California Policy and Politics This Morning

Gubernatorial hopeful Poizner, accused of flip-flopping, steers hard to the right -- When Republican Steve Poizner ran against Ira Ruskin in a heavily Democratic state Assembly district in 2004, Poizner assured voters he was against the war in Iraq, was 100 percent pro-choice and would stand up to "Republican Party bosses.'' Ken McLaughlin in the San Jose Mercury -- 3/8/10

Poizner, DeVore get conservative group’s nod -- Gubernatorial candidate Steve Poizner and U.S. Senate candidate Chuck DeVore are trailing significantly in their bids for the respective Republican nominations, but they got a bit of a boost today when they won the endorsements of the California Republican Assembly at the group’s Buena Park convention. Martin Wisckol in the Orange County Register Steve Wiegand SacBee Capitol Alert -- 3/8/10

Skelton: Older, wiser, ready to run -- 'This state is in big trouble,' says Jerry Brown, who expects a brutal election battle. George Skelton in the Los Angeles Times -- 3/8/10

Green Party in California trying to stem shrinking numbers -- Faced with diminishing numbers, a threatening ballot measure and the perpetual challenge of being a small third party in a two-party system, the California Green Party may be fading to chartreuse. Sharon Noguchi in the San Jose Mercury -- 3/8/10

Texas oil refiners deep in the heart of California politics -- Two Texas oil companies have been evasive about whether they are backing a California ballot initiative that would suspend the state's landmark global warming law, signed with fanfare by Gov. Arnold Schwarzenegger in 2006. Robert Salladay California Watch -- 3/8/10

Big plans to reform state government quietly dim -- This has not been a good month – or week – for Californians hoping that any number of reforms will lead the state out of its current political and fiscal morass. Louis Freedberg California Watch -- 3/8/10

Walters: Legislature's 'oversight' unit misses mark -- When Darrell Steinberg, the president pro tem of the state Senate, outlined his priorities last month, he included "oversight." In Capitol jargon it means the Legislature's holding hearings or conducting investigations into how state programs are functioning. Dan Walters in the Sacramento Bee -- 3/8/10

CalBuzz: Adapt or Die: The Political Evolution of Jerry Brown -- Jerry Brown roared back into California politics last week, putting on a clinic on how to win free media exposure, with a webcast announcement, CBS Evening News and Larry King Live appearances, sit-downs with more than three dozen newspaper, TV and radio outlets in every major market and an all-important interview with Calbuzz. Jerry Roberts and Phil Trounstine CalBuzz -- 3/8/10

   Economy - Jobs

GOP seeks review of 'job-killer' bills in California -- Bills that could hurt the state's business climate would be required to undergo an "economic impact analysis" under legislation to be considered in the state Senate this week. DON THOMPSON AP -- 3/8/10

Interest in buying state offices in California is building -- The 24 buildings being offered, including two in L.A., are drawing global investors. The sale is also being criticized for the loss of long-term capital assets in favor of short-term gains. Roger Vincent in the Los Angeles Times -- 3/8/10

Reporter's Notebook: Covering Jerry -- As the legend goes, some reporters were leaving a downtown club after a political banquet when they heard a rustle in the bushes. "Hey, let’s go get a beer!" The voice belonged to Gov.-elect Jerry Brown, 36, on a quest to hook up with the Capitol Press Corps. John Howard in Capitol Weekly -- 3/8/10

Valley mortgage foreclosure, delinquency rates still climbing -- Foreclosure rates among Valley homeowners with mortgages continued to creep upward in January, as the proportion of borrowers who are 90 days or more behind in their payments grows. Tim Sheehan Fresno Bee News Blog -- 3/8/10

Tough times reach Vernon -- The tiny but historically well-off municipality feels the pinch of the recession and votes to end healthcare coverage for city workers' families. Employees are shocked, and they're not the only ones. Hector Becerra in the Los Angeles Times -- 3/8/10

Job offers dwindle for MBA and law school grads -- Nelson Chiu shook hands with the PepsiCo representative, exchanged a few brief words and received a parting "good luck." Darrell Smith in the Sacramento Bee -- 3/8/10

   Education

California to list 187 chronically low-performing schools -- To align with the Obama administration's push to reform failing schools, California today will release a controversial list of the state's 187 "persistently lowest-achieving schools." The schools will be forced to close or adopt other drastic measures to improve. Sharon Noguchi in the San Jose Mercury -- 3/8/10

Fensterwald: Teachers surveyed agree: end ‘quality-blind’ layoffs -- Civil rights attorneys aren’t the only ones opposed to a teacher layoff system based strictly on seniority. Teachers themselves apparently aren’t crazy about it either. Also “A Smarter Teacher Layoff System” John Fensterwald educatedguess.org -- 3/8/10

Fensterwald: Exploring new pay plans for teachers, principals -- The vice president of the California Teachers Association said last week that he wouldn’t oppose alternative pay plans for teachers, under two conditions: They must be negotiated locally, and they must not tie teacher raises to results on California’s annual, high-stakes standardized tests. John Fensterwald educatedguess.org -- 3/8/10

Schools' New Math: The Four-Day Week -- A small but growing number of school districts across the country are moving to a four-day week, in a shift they hope will help close gaping budget holes and stave off teacher layoffs, but that critics fear could hurt students' education. CHRIS HERRING in the Wall Street Journal -- 3/8/10

Proposal would ease school parcel tax votes -- A Bay Area group called Californians for Improved School Funding wants to help school districts throughout the state raise money through local parcel taxes. Cheri Carlson in the Ventura Star -- 3/8/10

Bias incidents roil University of California -- Swastikas, nooses, a KKK hood, graffiti, epithets and jeers. An ugly spate of bias incidents has crossed several University of California campuses over the past month, causing consternation, outcry and fear that bigotry is alive among the young and educated. CHRISTINA HOAG AP -- 3/8/10

   Environment

Alcatraz to go solar -- In its heyday, Alcatraz prison locked up mobsters like Al Capone, "Machine Gun" Kelly and Alvin "Creepy" Karpis. Now, the famous penitentiary in San Francisco Bay will capture something new: the sun's rays. Paul Rogers in the San Jose Mercury -- 3/8/10

   Health Care

State response to coverage recissions to get critical look -- The practice of health insurance companies rescinding coverage for customers after they file expensive claims will be in the spotlight again this week at the Capitol. Daniel Weintraub HealthyCal.org -- 3/8/10

Advocates sound alarm on cell phone radiation -- It started after her husband, Fresno State football coach Dan Brown, developed brain cancer. Before slipping into a coma a year ago, he said "make sure everybody knows," she said. "I promised I would." Barbara Anderson in the Fresno Bee -- 3/8/10

Health reform is already here — in San Francisco -- The overhaul of America’s health care system may be stalled in Washington, but in San Francisco, a new method of delivering health care is already in place. Richard C. Paddock HealthyCal.org -- 3/8/10

   POTUS 44

Unrest in Democratic Party plays out in Emanuel controversy -- White House chief of staff Rahm Emanuel has become a reluctant central figure in the battle between liberals and centrists in the Democratic Party. Sam Youngman The Hill -- 3/8/10

   Also..

Budget cuts slash California rehabilitation program for prisoners -- California prison officials began touting a new public safety reform in January that would encourage inmates to complete a rehabilitation course and earn six weeks per year off a sentence. Susan Ferriss in the Sacramento Bee -- 3/8/10

Pakistanis arrest man, but whom? -- U.S. is skeptical that a Californian turned top propagandist for Al Qaeda has been captured in Karachi. Alex Rodriguez in the Los Angeles Times -- 3/8/10

Obama judicial nominee already a target -- Two days after President Barack Obama nominated Goodwin Liu, of Berkeley, to the 9th U.S. Circuit Court of Appeals, Republicans fired the first shot across his confirmation's bow. Josh Richman in the Oakland Tribune -- 3/8/10

Was KKK gathering held in Merced in early 2009? -- A Merced County Sheriff's deputy drove past a small gathering in early 2009 not often seen in this rural county whose population is mostly Latino -- a Ku Klux Klan-like meeting. Jonah Owen Lamb in the Modesto Bee -- 3/8/10

List of winners at the 82nd annual Oscars -- AP -- 3/8/10

   Beltway

Healthcare overhaul comes down to Pelosi and Obama -- The bill's fate depends on whether the House speaker can land enough votes - and whether the president can take control of the debate, which Democrats say he has not done. Janet Hook and Noam N. Levey in the Los Angeles Times -- 3/8/10

Republican leaders distance selves from 'fear' doc -- GOP leaders Sunday continued to distance themselves from the Republican National Committee fundraising document, first reported by POLITICO, that calls for using “fear” to motivate the party’s “ego-driven” donors and includes juxtapositions of Democratic politicians with cartoons, including a racially charged depiction of President Barack Obama as the Joker from “Batman.” JOSH GERSTEIN Politico -- 3/8/10