Anxious customers jam Countrywide branches -- Anxious customers jammed the phone lines and website of Countrywide Bank and crowded its branch offices to pull out their savings because of concerns about the financial problems of the mortgage lender that owns the bank. E. Scott Reckard and Annette Haddad in the Los Angeles Times -- 8/16/07

Notice begins for 2,100 sex offenders breaking Jessica's Law -- Parole agents on Friday will begin notifying as many as 2,100 recently paroled sex offenders that they have to move because they live too close to schools and parks in violation of an initiative approved by California voters last November, officials said Thursday. DON THOMPSON AP -- 8/16/07

Governor's appointee resigns amid "hate speech" accusation -- A low-level appointee of Gov. Arnold Schwarzenegger resigned Thursday after the Democratic leader of the state Senate accused him of posting a picture on his blog that amounted to "hate speech." AP -- 8/16/07

Who has "arrived"? -- Having performed "better than expected" in last weekend's presidential straw poll of Iowa Republicans, former Arkansas Gov. Mike Huckabee won the dubious honor of being invited on Thursday to a high cholesterol breakfast with Washington political reporters under the sponsorship of the Christian Science Monitor. Finlay Lewis San Diego Union-Trib weblog -- 8/16/07

Democrats target electoral-vote plan that could tilt 2008 race -- Leading Democrats are uniting with Hollywood producer Stephen Bing and hedge fund manager Tom Steyer to block a California ballot proposal they fear could hand the 2008 presidential election to the Republican nominee. MICHAEL R. BLOOD AP -- 8/16/07

Orange County sheriff agrees to pay $15,000 fine -- Hoping to resolve allegations of finance-reporting violations, Orange County Sheriff Michael S. Carona has struck a tentative agreement to pay a $15,000 fine to the Fair Political Practices Commission, which meets today in Sacramento to consider the settlement. Christopher Goffard in the Los Angeles Times -- 8/16/07

State budget pinch puts squeeze on kids, families — Teacher Marta Cueva dipped into her wallet this week to buy fabric for costumes that her young students will wear when they perform Mexican folk dances at her Berkeley school's end-of-summer show. Haley Davies, Tyche Hendricks in the San Francisco Chronicle — 8/16/07

School districts feel pinch of California budget impasse — The state is withholding millions in educational funds from North County school districts as it grapples with the legislature's failure to pass a budget. California is holding back $3.2 billion in payments to schools, community colleges, hospitals, day-care centers and nursing homes, according to the state controller's office. PHILIP K. IRELAND in the North County Times — 8/16/07

Republicans bruise one another in state budget brawl — This is getting good: The Republican governor and Republican senators throwing knockout punches — not at Democrats, but at each other. So this must be the meaning of "post-partisanship:" intraparty pummeling. George Skelton in the Los Angeles Times — 8/16/07

In standoff, Republican senators have least to lose — I'll never forget the summer of 1992, when state lawmakers and Gov. Pete Wilson were locked in a two-months-long stalemate over the budget. Daniel Weintraub in the Sacramento Bee — 8/16/07

GOP senators want a balanced budget — With the state budget more than six weeks overdue, two local Republican state senators said Wednesday they are still holding out for a spending plan that eliminates a $700 million shortfall this year. EDWARD SIFUENTES in the North County Times — 8/16/07

Governor Optimistic on Budget Impasse — Gov. Schwarzenegger brought an upbeat plea for budget compromise to Riverside on Wednesday, praising one Inland lawmaker and indicating legislators may be close to a deal. MICHELLE DeARMOND in the Riverside Press — 8/16/07

How can GOP work alone on budget? — This is not the first time the California Legislature has reached an impasse in its budget negotiations. In past years the state has gone until early September without a budget agreement. Tom McClintock in the Sacramento Bee — 8/16/07

The Denham Strategy — It should be perfectly obvious following the debacle of the dot-com bubble, in which legislators of both parties pushed then Governor Gray Davis and California’s budget off a cliff with demands for unsustainable spending and tax cut programs, that California needs two modern, competitive political parties in order to thrive. Right now, it might have one, but certainly not two. Bill Bradley NWN weblog — 8/16/07

Boxer says state needs tougher look at bridges — Despite new assurances that California's bridges are safe, some elected officials said Wednesday that they were worried the structures had not been given the thorough and frank appraisal or repairs needed. Patrick McGreevy in the Los Angeles Times Laura Kurtzman in the San Jose Mercury Erik N. Nelson in the Oakland Tribune Timm Herdt in the Ventura Star — 8/16/07

Governor reversed on parole — An Orange County judge rules Schwarzenegger was not supported by the facts when he blocked the release of an inmate convicted of the 1987 murder of his brother-in-law. LARRY WELBORN in the Orange County Register — 8/16/07

Lieber pushes Cal/EPA for toxics report — Assemblywoman Sally Lieber, D-Mountain View, has been pressuring one of California's lead environmental agencies to release a workplace-toxics report that is a year overdue. Malcolm Maclachlan in Capitol Weekly — 8/16/07

Prison report cites valley fever risks — Public health officials are recommending that California hold off on new prison construction in the southern San Joaquin Valley because it will expose an untold number of inmates to potentially fatal valley fever. Andy Furillo in the Sacramento Bee — 8/16/07

Fraud lawsuit settled ahead of trial — Weeks before trial, Assemblyman Guy Houston has settled a 3-year-old lawsuit accusing him of cheating investment clients out of hundreds of thousands of dollars. Agreement was reached at a time when Houston, a San Ramon Republican who is termed out of the Assembly next year, is preparing a 2008 campaign for a Contra Costa County supervisorial seat. Jim Sanders in the Sacramento Bee — 8/16/07

Moorlach pushing initiative to whittle public pension — Outside of Orange County, John Moorlach is not a household name. That's about to change. Moorlach, who first warned about OC's 1994 bankruptcy, now is a county supervisor spearheading a drive to reduce the pensions of sheriff's deputies. John Howard in Capitol Weekly — 8/16/07

The pension debate: real problem or red herring? — A year after Gov. Arnold Schwarzenegger aborted his attempt at changing the state's public employee pension system, the governor and legislative leaders got together to appoint a commission to look at what is often called the state's pension crisis. But depending on who you talk to, it is a crisis that may or may not exist. Anthony York in Capitol Weekly — 8/16/07

Increase looms in earthquake insurance premiums — After lengthy negotiations, the state's major property insurers and the California Earthquake Authority have reached tentative agreement on a financing plan that would increase the average quake insurance policy by $55 annually, and includes a new $1.2 billion commitment from insurers. John Howard in Capitol Weekly — 8/16/07

No card, no bingo, AG's ruling says — A memo from the state attorney general's office — clarifying that electronic bingo isn't bingo at all — has sparked concern among local charities, whose profits have been increasingly augmented by the devices that resemble casino slots. Ed Fletcher in the Sacramento Bee — 8/16/07

SFO to add airport security express lane for approved travelers — Travelers flying out of San Francisco International Airport will soon be able to whiz through security gates faster - if they pay a $99.95 annual fee and submit to background checks. Heather Knight in the San Francisco Chronicle — 8/16/07

Giuliani leads GOP field — Former New York City Mayor Rudy Giuliani has a sizable lead in California's Republican presidential primary race, while Sen. John McCain has lost so much support since March that he now ranks fourth among GOP contenders, according to a Field Poll released today. Kevin Yamamura in the Sacramento Bee Zachary Coile in the San Francisco Chronicle John Marelius in the San Diego Union-Trib — 8/16/07 Link to the poll here

Huckabee finds a spotlight — t's tough running for president with little money or name recognition. But recent appearances on talk shows offer some hope. Michael Finnegan in the Los Angeles Times — 8/16/07

Billionaire introduces Obama in Omaha — Warren Buffett says the Democrat would spread the wealth. John McCormick in the Los Angeles Times — 8/16/07

Got money for milk? — Record prices for milk came too late to save Denny Murphy's dream. His cows are gone now — all but two he kept for sentimental reasons for his teenage children. The Fowler farmer sold his other 126 cows July 6, getting out of the dairy business because of losses caused in part by last year's scorching summer heat. Dennis Pollock in the Fresno Bee — 8/16/07

State Fund gets new boss — The State Compensation Insurance Fund on Wednesday tapped an executive from the nation's fifth-largest insurer to steer a quasi-public agency rocked by scandals, management shake-ups and government probes in the past year. Gilbert Chan in the Sacramento Bee — 8/16/07

Countrywide bankruptcy possible — Angelo Mozilo, chief executive of Countrywide Financial Corp., has been fond of saying that the company became America'sNo. 1 mortgage lender by being smarter than the competition. E. Scott Reckard and Annette Haddad in the Los Angeles Times — 8/16/07

Amgen to slash 12% of jobs — Biotech giant Amgen Inc. said Wednesday that it was cutting 2,200 to 2,600 jobs as part of a sweeping plan to save more than $1 billion over the next year in an unprecedented biotech industry retrenchment. Daniel Costello and Andrea Chang in the Los Angeles Times BETH BARRETT and BRENT HOPKINS in the Los Angeles Daily News — 8/16/07

Chevron can be sued for attacks on Nigerians, U.S. judge rules — Nigerian villagers can go to trial in San Francisco in a lawsuit that seeks to hold Chevron Corp. responsible for military attacks that killed and wounded protesters at oil company facilities in 1998 and 1999, a federal judge has ruled. Bob Egelko in the San Francisco Chronicle — 8/16/07

Student scores level off in state — The leveling off spurs concern. Also troubling are lagging results by the state's black and Latino students. Joel Rubin and Seema Mehta in the Los Angeles Times Nanette Asimov in the San Francisco Chronicle — 8/16/07

Tests show racial achievement gap — Whether they are poor or rich, white students are scoring higher than their African American and Latino classmates on the state's standardized tests, results released Wednesday show. And in some cases, the poorest white students are doing better than Latino and black students who come from middle class or wealthy families. Laurel Rosenhall in the Sacramento Bee Jessie Mangaliman in the San Jose Mercury Bruce Lieberman in the San Diego Union-Trib — 8/16/07

Test results show LAUSD still has a long way to go — Los Angeles Unified students made little academic improvement in test results released Wednesday as district officials acknowledged that significant work lies ahead in getting all students prepared for college. NAUSH BOGHOSSIAN in the Los Angeles Daily News — 8/16/07

Orange County test scores rise for 5th straight year — Public school students in grades 2-11 outscore peers statewide on California Standards Tests. FERMIN LEAL in the Orange County Register — 8/16/07

Four-fifths of Oakland district pupils fall short of 'proficient' level in English, math — After two years of gains, Oakland public school students hit a wall in state standardized tests scores in 2007; with scores little changed from 2006, and still considerably below state averages, according to statistics released by the state Department of Education Wednesday. Barbara Grady, Kristin Bender and Shirley Dang in the Oakland Tribune — 8/16/07

New Diablo Valley College leader stresses integrity after scandal — The new president of Diablo Valley College in Pleasant Hill promised Wednesday to preserve the "institutional integrity" of the campus in the wake of a criminal case against nearly three dozen current or former students allegedly involved in a scheme to change transcript grades for cash. Henry K. Lee in the San Francisco Chronicle — 8/16/07

Regents say it was time for Dynes to move on — Members of the University of California's governing board spent the past month orchestrating the departure of President Robert C. Dynes after losing confidence in his leadership, officials said yesterday. Eleanor Yang Su in the San Diego Union-Trib — 8/16/07

UCD report: Tahoe air, water warming up — Climate change is warming frigid Lake Tahoe, air temperatures are rising, and the alpine lake's famous clarity is being degraded, according to a new report by the University of California, Davis. Bill Lindelof in the Sacramento Bee Peter Fimrite in the San Francisco Chronicle — 8/16/07

New study finds some good things associated with life in the valley and a lot bad — San Joaquin Valley people are poorer, fatter, less educated and more exposed to crime compared with other Californians, according to a first-of-its-kind study obtained by The Bee. On the other hand, drivers from Stockton to Bakersfield car-pool more and wait less in traffic, and buyers and renters find more affordable housing than almost anywhere else in the state, the report says. GARTH STAPLEY in the Modesto Bee — 8/16/07

Bay Area Gridlock — Expanding passenger rail service capacity in the Bay Area - by laying more tracks, building more stations and running a second BART tube beneath the bay - could help prevent gridlock on the region's highways in coming decades. Rachel Gordon in the San Francisco Chronicle — 8/16/07

Scientists find clue to 'creeping' along San Andreas Fault — Scientists drilling more than 2 miles deep into the San Andreas Fault have discovered underground patches of talc, nature's softest known mineral, that could help explain the absence of sharp earthquakes where the fault is "creeping." David Perlman in the San Francisco Chronicle — 8/16/07

Home prices rise in July even as sales fall to 12-year low — The protracted waiting game between home buyers and sellers continued in July, as Bay Area real estate sales slowed to a 12-year low while prices edged up, according to a report released on Wednesday. Carolyn Said in the San Francisco Chronicle — 8/16/07

Mortgage mess weighing on Silicon Valley's home market — Santa Clara County's housing market continued in fire and ice mode in July, with expensive homes selling briskly while more affordable ones languished as lenders tightened their standards. Pete Carey in the San Jose Mercury — 8/16/07

Small drop seen in foreclosures, but 'more on the way' — Home foreclosure activity in San Diego County dipped slightly from June to July, but the surge in mortgage defaults that began in late 2005 could continue for many months to come, DataQuick Information Systems reported yesterday. Emmet Pierce in the San Diego Union-Trib — 8/16/07

Cat thyroid disease linked to chemicals — An epidemic of thyroid disease among pet cats could be caused by toxic flame retardants that are widely found in household dust and some pet food, government scientists reported Wednesday. Marla Cone in the Los Angeles Times — 8/16/07

Chemical terminal at L.A. port to be shut — The Los Angeles City Council voted Wednesday to spend $17 million to eliminate a 14-acre chemical terminal at the Port of Los Angeles, delivering on promises made nearly six years ago to improve safety of nearby neighborhoods in the wake of the Sept. 11 terror attacks. David Zahniser in the Los Angeles Times — 8/16/07

Crews clean up Valley wash seen as potential West Nile virus threat — Clean up began Wednesday on the Pacoima Wash in Panorama City, considered the county's most fertile breeding ground for mosquitoes carrying the West Nile virus. Francisco Vara-Orta in the Los Angeles Times — 8/16/07

Home Depot loses store permit battle — The L.A. City Council votes to require a more extensive environmental review, setting the project back months. David Zahniser in the Los Angeles Times — 8/16/07

Study: Tougher laws cost gun dealers' licenses — Led by sharp declines in states including California, Florida and Washington, the number of federally licensed firearms dealers has fallen 79 percent nationwide since 1994. In that year, Congress adopted new gun-control measures that still spark fiery debate. Michael Doyle in the Sacramento Bee — 8/16/07

Celeb does the time, leaking photo may be a crime — Amid concern over the frenzy of entertainment blogs and tabloids competing for inside information on Paris Hilton's days in jail and Mel Gibson's tirade during a drunk-driving arrest, state lawmakers have taken steps to clamp down on some forms of checkbook journalism. Patrick McGreevy in the Los Angeles Times — 8/16/07

Area black muslims fight common false impressions — Your Black Muslim Bakery was once an establishment that symbolized self-reliance and black empowerment in Oakland. Now, it's a skeleton of what it once was and has lost its level of contribution in society many years ago, said Imam Ben Ahmad of Menlo Park. Christine Morente in the Oakland Tribune — 8/16/07

Judges asked to dismiss wiretap suits — AT & T customers seek damages from the firm and an Islamic charity says the spying program is illegal. Henry Weinstein in the Los Angeles Times Bob Egelko in the San Francisco Chronicle — 8/16/07

No one is running against San Francisco district attorney in fall election — San Francisco District Attorney Kamala Harris collected more than $500,000 from donors for her re-election effort, lined up high-profile endorsements and launched a campaign Web site. Demian Bulwa in the San Francisco Chronicle — 8/16/07

LAPD will continue to help with federal pot store raids — Los Angeles police said Wednesday that they will continue to participate in federal raids on local medical marijuana dispensaries against the wishes of some members of the City Council. Steve Hymon in the Los Angeles Times — 8/16/07

Top of the world, Ma — for a few hours — Reggie the alligator — the John Dillinger of semi-aquatic reptiles — was returned to custody Wednesday after having busted out of the slammer at the L.A. Zoo overnight. Tiffany Hsu and James Ricci in the Los Angeles Times — 8/16/07

A life lost to graffiti — Friends, family mourn a neighborhood icon who was trying to keep up her Pico Rivera neighborhood. Tami Adbollah and Andrew Blankstein in the Los Angeles Times — 8/16/07