A whole generation of trust-fund babies -- State Senators Darrell Steinberg, D-Sacramento, and Robert Dutton, R-Riverside, introduced a bill last week called the California Kids Investment and Development Savings (KIDS) Account Act which would create a $500 state-sponsored savings account for every baby born in California on or after Jan. 1, 2008. Josh Richman Political Blotter weblog-- 2/28/07

John McCain lines up big-name fundraisers in California -- With intense competition under way for California political dollars, John McCain's campaign announced Wednesday it had enlisted dozens of fundraisers in the state to help him bankroll his 2008 White House run. MICHAEL R. BLOOD AP -- 2/28/07

McCain to Formally Announce Bid in April -- Republican Sen. John McCain will officially enter the presidential race with a formal announcement in early April. LIZ SIDOTI AP -- 2/28/07

Lawmakers say they want changes at CSU -- Lawmakers are putting pressure on the California State University system with bills seeking more scrutiny of financial decisions. MICHELLE LOCKE AP -- 2/28/07

Report says divers swept toward pump in CA aqueduct -- The bodies of two divers who died earlier this month while inspecting a pumping station in the California Aqueduct were found in front of the lone pump that was operating when they submerged, according to a preliminary investigation by the Department of Water Resources. SAMANTHA YOUNG AP -- 2/28/07

Gov.'s Tree Planting: 'Little Or No Impact' On Global Warming -- To compensate for every pollution-spewing private jet ride he takes, Gov. Arnold Schwarzenegger wants to plant or protect trees. Robert Salladay LA Times weblog -- 2/28/07

Poizner names executive team, includes industry and consumers reps -- Republican Insurance Commissioner Steve Poizner announced his executive team today, trumpeting them as "Republican and Democrat, industry and consumer advocates." The appointments include William Gausewitz, a former insurance industry representative, as special counsel and Gary Cohen, a holdover from John Garamendi's term, as general counsel. Shane Goldmacher SacBee Capitol Alert -- 2/28/07

Immigrants boost pay, not prison populations, new studies show -- Two new studies by California researchers counter negative perceptions that immigrants increase crime and job competition, showing that they are incarcerated at far lower rates than native-born citizens and actually help boost their wages. Teresa Watanabe in the Los Angeles Times Tyche Hendricks in the San Francisco Chronicle Susan Ferriss in the Sacramento Bee Jessie Mangaliman in the San Jose Mercury Michele R. Marcucci in the Oakland Tribune George Avalos in the Contra Costa Times Zeke Barlow in the Ventura Star WILLIAM FINN BENNETT in the North County Times -- 2/28/07    Link to the PPIC report here

Firms treat state, local transit officials before vote on road funding -- On the eve of their vote today to allocate $4.5 billion in statewide transportation funds, members of the California Transportation Commission were the guests at a cocktail reception in Irvine on Tuesday night paid for by road designers and engineering firms. Jeffrey L. Rabin and Dan Weikel in the Los Angeles Times -- 2/28/07

Police probe death in organ donation case -- Authorities investigate allegations that a Kaiser surgeon in San Luis Obispo hastened a possible donor's demise. Charles Ornstein and Tracy Weber in the Los Angeles Times -- 2/28/07

In Washington, Schwarzenegger preaches Sacramento-style post-partisanship -- Before wrapping up a three-day visit, Gov. Arnold Schwarzenegger went to Capitol Hill on Tuesday to sell his gospel of political cooperation and build a consensus for his second-term agenda. Peter Nicholas in the Los Angeles Times Edward Epstein in the San Francisco Chronicle David Whitney in the Sacramento Bee Lisa Friedman in the San Jose Mercury DENA BUNIS in the Orange County Register -- 2/28/07

Politicians' flights called wasteful -- Schwarzenegger and Feinstein preach energy efficiency but often fly fuel-gulping small jets. Paul Pringle in the Los Angeles Times -- 2/28/07

Governor claims to have no post-term plans -- Citing his movie and business experience, Gov. Arnold Schwarzenegger Tuesday explained why he doesn't know what he will do at the end of his term in 2010 -- and why he likes it that way. Frank Davies in the San Jose Mercury -- 2/28/07

States' Pension Shortfalls Widen Amid an Increase in Tax Receipts -- State governments' unfunded pension liabilities continue to increase despite a recent rise in tax receipts, in a continuation of a spiral that began in the late 1990s, according to a Standard & Poor's analysis to be released today. CHRISTOPHER COOPER in the Wall Street Journal -- 2/28/07

New federal building in SoMa costs a bundle -- That state-of-the-eco-art federal building in San Francisco's South of Market is more than an architectural wonder -- it's also a year-and-a-half late and millions of dollars over budget. Phillip Matier, Andrew Ross in the San Francisco Chronicle -- 2/28/07

San Diego Diocese files for bankruptcy -- The filing puts lawsuits from 150 people who alleged that they were sexually abused by priests in abeyance. One activist calls the move 'morally bankrupt.' Tony Perry in the Los Angeles Times Mark Sauer in the San Diego Union-Trib -- 2/28/07

Youth correctional facility is a 'recipe for tragedy,' inspection finds -- The institution in Chino has fixed few of the problems found in a similar checkup two years ago, the state's inspector general says. Jonathan Abrams in the Los Angeles Times Mark Martin in the San Francisco Chronicle Karen de Sá in the San Jose Mercury -- 2/28/07

Prison policy aide resigns -- The prison system's top health care policy adviser has resigned amid a conflict-of-interest investigation into his investments, but in an interview Tuesday, the official denied any impropriety. Andy Furillo in the Sacramento Bee -- 2/28/07

Senator to again push single-payer health plan -- If legislative Democrats had their way, California might well be headed to a government-run health care system. Both houses of the Legislature passed a bill last year to create a so-called ``single-payer'' system, only to have Gov. Arnold Schwarzenegger veto it. Mike Zapler in the San Jose Mercury Timm Herdt in the Ventura Star -- 2/28/07

Stem-cell agency faulted -- State auditors Tuesday criticized California's $3 billion stem-cell institute for lax travel and entertainment rules that let its officials sometimes get chauffeured rental cars, expensive meals and first-class air fare. Steve Johnson in the San Jose Mercury Terri Somers in the San Diego Union-Trib -- 2/28/07

Orange County supervisors to let the courts decide recount issue -- Board puts off naming a new member a day after Janet Nguyen claimed victory. Trung Nguyen has filed a legal challenge. Mike Anton in the Los Angeles Times PEGGY LOWE in the Orange County Register -- 2/28/07

Computers, prisons and health care -- Members of the Senate Budget Committee were plainly irked last week during a hearing on the state's long-stalled efforts to upgrade and merge its computer systems. Dan Walters in the Sacramento Bee -- 2/28/07

Report: State spends too little to aid gamblers -- Booming tribal casinos, a state lottery, horse tracks and more have made California the country's gambling leader, but at the cost of hundreds of thousands of gambling addicts, lawmakers were told Tuesday. JIM MILLER in the Riverside Press Steve Geissinger in the Contra Costa Times -- 2/28/07

War bill divides Democrats -- Democratic lawmakers, who earlier this month nearly unanimously backed resolutions condemning President Bush's plans to boost troop levels in Iraq, are struggling to agree on what to do next in their drive to bring the war to an end. Noam N. Levey and Richard Simon in the Los Angeles Times Edward Epstein in the San Francisco Chronicle -- 2/28/07

White House pushes immigration overhaul -- Chertoff leads the charge on Capitol Hill for enough votes to pass a comprehensive plan. Nicole Gaouette in the Los Angeles Times -- 2/28/07

San Bernardino County wants Bush to free jailed agents -- President Bush should consider pardoning two Border Patrol agents convicted of shooting an alleged drug smuggler, according to a unanimous resolution Tuesday by the San Bernardino County Board of Supervisors. Jeff Horwitz in the San Bernardino Sun -- 2/28/07

Suit demands details on secret court's wiretap ruling -- A privacy rights group sued the Justice Department on Tuesday to try to pry loose a ruling by a secret court that the Bush administration says approved its clandestine wiretapping program. Bob Egelko in the San Francisco Chronicle -- 2/28/07

Dramatic rise in California schools falling behind on 'No Child' goals -- The architects of the federal No Child Left Behind Act hoped that showering schools with extra money and expert advice over several years would make them succeed. But a new study released today shows that only 10 out of hundreds of low-scoring California schools facing severe consequences under No Child Left Behind have improved enough to get off of a state watch list this year -- including Sobrante Park Elementary in Oakland. Nanette Asimov in the San Francisco Chronicle NAUSH BOGHOSSIAN in the Los Angeles Daily News -- 2/28/07

Big changes seen under No Child Left Behind -- The federal No Child Left Behind law has prompted huge changes at schools in Sacramento and Lake Tahoe, reforms that are emblematic of how President Bush's landmark education policy will influence schools across the country in the years to come. Laurel Rosenhall in the Sacramento Bee -- 2/28/07

When it comes to education, governor doesn't lead -- Anybody want to be Gov. Arnold Schwarzenegger's secretary of education? Peter Schrag in the Sacramento Bee -- 2/28/07

Stanford gets $33 million for stem cell research -- The donation from Lorry I. Lokey, the founder of Business Wire and a 1949 Stanford graduate, came a day after a California appeals court upheld the constitutionality of Proposition 71, a $3-billion bond measure for stem cell research. Mary Engel in the Los Angeles Times -- 2/28/07

UC exempt from $1.1 million fine levied for Los Alamos lab mishaps -- The federal government has recommended that the University of California pay a $1.1 million fine for incidents at Los Alamos National Laboratory that resulted in 15 nuclear safety violations, including a case in which an employee accidentally spread radioactive material to three states and episodes in which workers inhaled radioactivity. Keay Davidson in the San Francisco Chronicle -- 2/28/07

Hepatitis A health alert is issued -- Wolfgang Puck Catering says partygoers at 13 events, including a party for Sports Illustrated swimsuit models, may have been exposed. Stuart Silverstein in the Los Angeles Times -- 2/28/07

San Francisco scientists find way to halt malaria in kids -- San Francisco and African AIDS researchers reported Tuesday that they had virtually eliminated malaria in a group of highly vulnerable, HIV-infected children simply by providing them with a daily dose of antibiotic and having them sleep under an insecticide-treated mosquito net. Sabin Russell in the San Francisco Chronicle -- 2/28/07

Smoking bans blow into cities -- A growing number of California towns snuff out the use of tobacco outdoors. SONYA SMITH and GREG HARDESTY in the Orange County Register -- 2/28/07

Cost for air ambulance ride could double -- The baseline cost of an air ambulance ride in Kern County will likely double to around $9,300 during the next three months after supervisors Tuesday removed rate regulations on the two companies that provide the emergency helicopter services. JAMES BURGER in the Bakersfield Californian -- 2/28/07

Sutter's plan blasted -- Sutter Health's plan to close its Santa Rosa hospital was bemoaned, besmirched and blasted during a public hearing Tuesday conducted by Sonoma County supervisors, who are considering shifting public health programs to Memorial Hospital. BLEYS W. ROSE in the Santa Rosa Press -- 2/28/07

No shortage of uses for anti-flood funds -- A top priority will be figuring how to speed repairs - and raise cash. Deb Kollars in the Sacramento Bee -- 2/28/07

San Bernardino County OKs desert sewage sludge composting plant -- The San Bernardino County Board of Supervisors on Tuesday voted unanimously in favor of a proposed sewage sludge composting plant that would be built eight miles outside the high desert town of Hinkley, despite strong objections from residents worried about potential health hazards. Sara Lin in the Los Angeles Times -- 2/28/07

Conservation may limit global warming -- Researchers support carbon taxes, a ban on coal-fired power plants and an end to beachfront construction. Robert Lee Hotz in the Los Angeles Times -- 2/28/07

State gas prices zooming near $3 -- California's gasoline market is so fragile that a fire at an oil refinery in the Texas Panhandle could help boost prices above $3 a gallon. Dale Kasler in the Sacramento Bee -- 2/28/07

Lawmaker wants state to follow city's lead with 'toxic toy' ban -- Toys and child care products that contain certain chemicals would be banned in California under a bill introduced Tuesday by a San Francisco assemblywoman. Democrat Fiona Ma's "toxic toy'' bill, which mirrors a San Francisco law, would ban the manufacture, sale and distribution of the products beginning in 2009 if they contain bisphenol A. The chemical is a building block of hard, polycarbonate plastic. Jane Kay in the San Francisco Chronicle -- 2/28/07

Judge grants an injunction against L.A. street gang -- The Highland Park crew, which allegedly sells meth, is the 50th organization in the city to come under permanent restrictions. Patrick McGreevy in the Los Angeles Times -- 2/28/07

On the warpath against 'urban terrorism' -- Alarmed by escalating violence, California lawmakers have introduced more than a dozen anti-gang bills to help law enforcement crack down on what some call a form of urban terrorism. HARRISON SHEPPARD in the Los Angeles Daily News -- 2/28/07

L.A. Supervisors put squeeze on sheriff -- With their chairman calling the Sheriff's Department a "rogue operation," Los Angeles County supervisors called Tuesday for an investigation into excessive overtime expenses and whether Sheriff Lee Baca has misused funds designed to upgrade the jails. TROY ANDERSON in the Los Angeles Daily News -- 2/28/07

Fire officials reassign deputy chief who led probes of bias claims -- A Los Angeles Fire Department deputy chief who oversaw probes of two now high-profile discrimination lawsuits is being reassigned, a move that in effect demotes him as second in command of the 3,900-member force. Robert J. Lopez in the Los Angeles Times -- 2/28/07

She swears the Constitution is on her side -- A Riverside woman, cited over foul language at John Wayne Airport, says the law is vague and stifles free speech. Roy Rivenburg in the Los Angeles Times -- 2/28/07

God's word, plus static, on Calvary Satellite Network -- Amid accusations over sex, money and control, Pastor Chuck Smith is about to surrender much of the evangelical radio empire to a man he calls morally unfit for ministry. Christopher Goffard in the Los Angeles Times -- 2/28/07