Clinton, McCain Win NH Primaries -- Sen. Hillary Rodham Clinton won New Hampshire's Democratic primary Tuesday night in a startling upset, defeating Sen. Barack Obama and resurrecting her bid for the White House. Sen. John McCain powered past his Republican rivals and back into contention for the GOP nomination. DAVID ESPO and PHILIP ELLIOTT AP Chris Cillizza in the Washington Post JOHN M. BRODER in the New York Times Mark Z. Barabak and Michael Muskal in the Los Angeles Times -- 1/8/08

APNewsAlert -- Hillary Rodham Clinton has won the Democratic primary in New Hampshire. CNN projects Clinton win.

Moderates Help McCain, Women Aid Clinton -- John McCain's experience, reputation for "straight talk" and appeal among moderates helped him beat Mitt Romney in New Hampshire's Republican primary, an exit poll found. Women returned solidly to Hillary Rodham Clinton's side in the Democratic contest, countering Barack Obama's advantage among the state's large bloc of independents. MIKE MOKRZYCKI AP -- 1/8/08

McCain Savors NH Comeback -- John McCain rode the Straight Talk Express straight into first place in New Hampshire, and back into the thick of the race for the Republican presidential nomination. LIZ SIDOTI AP -- 1/8/08

Clinton Begins Retooling Campaign Team -- Democratic presidential candidate Hillary Rodham Clinton began retooling her campaign, looking ahead to later contests in the primary process. BETH FOUHY AP -- 1/8/08

Schwarzenegger calls for immediate cuts, state spending cap -- Hamstrung by a $14 billion budget deficit, Gov. Arnold Schwarzenegger asked lawmakers Tuesday for a state spending cap and said he will propose immediate cuts in all state programs during a State of the State address that focused more on restraint than expansive new ideas. Kevin Yamamura in the Sacramento Bee Patrick McGreevy in the Los Angeles Times Steve Geissinger in the San Jose Mercury -- 1/8/08

McCain Grabs Early Lead in New Hampshire -- Republican Sen. John McCain grabbed an early lead over former Massachusetts Gov. Mitt Romney in New Hampshire's first-in-the-nation primary Tuesday night as he sought to climb back into contention for the presidential nomination. Sen. Barack Obama dueled with Hillary Rodham Clinton in the Democratic contest. DAVID ESPO and PHILIP ELLIOTT AP -- 1/8/08

Schwarzenegger seeks new budget process to address deficits -- Saying "the wolf is back" at the door, Gov. Arnold Schwarzenegger proposed a constitutional amendment in his State of the State address Tuesday that would force automatic cuts to the state budget to avoid large deficits like the one he is now facing. LAURA KURTZMAN AP -- 1/8/08

Constitutional amendments can make ballot in two ways -- Constitutional amendments, such as the one Gov. Arnold Schwarzenegger proposed Tuesday in his State of the State address, can be put on the ballot by the Legislature or as a voter initiative. It takes two-thirds votes in the Legislature (at least 27 of the 40 senators and 54 of the 80 Assembly members) to approve a constitutional amendment. Those are difficult majorities to put together unless there is broad bipartisan agreement. AP -- 1/8/08

Schwarzenegger wants constitutional amendment for budget powers -- Aides say the governor wants to be able to reduce spending in the middle of the year when revenues are falling and bank surpluses in years when tax receipts come in higher than expected to avoid large deficits like the one he is now facing.LAURA KURTZMAN AP Bill Ainsworth San Diego Union-Trib weblog Patrick McGreevy in the Los Angeles Times Kevin Yamamura in the Sacramento Bee -- 1/8/08

Excerpts from the State of the State speech -- Shane Goldmacher SacBee Capitol Alert -- 1/8/08

Excerpts of the Democratic response -- Shane Goldmacher SacBee Capitol Alert -- 1/8/08

Perata gets a new car -- Senate President Pro Tem Don Perata is now driving a more understated car: a navy blue Chevy Impala. Judy Lin SacBee Capitol Alert -- 1/8/08

Huge turnout reported in N.H. primary -- New Hampshire voters headed to the polls in apparently record numbers Tuesday as the state’s first-in-the-nation primary readied to deliver long-awaited results that could write a new chapter in a 2008 campaign narrative that thus far has been both historic and impossible to predict. Bill Nichols Politico Mark Z. Barabak and Scott Martelle in the Los Angeles Times JEFF ZELENY in the New York Times -- 1/8/08

Cash-Starved Clinton Considers Skipping Next Primaries -- A panicked and cash-short Clinton campaign is seriously considering giving up on the Nevada caucuses and on the South Carolina primary in order to regroup and to save resources for the massive 19-state mega-primary on February 5. Thomas B. Edsall Huffington Post -- 1/8/08

Bill Clinton Keys Obama's Car -- That is precisely what happened, however, in the parking lot of a Dunkin' Donuts in Nashua, New Hampshire, where Mr. Obama and his aides had stopped for an early morning campaign appearance. Spotting the Illinois senator's car in the lot, a wild-eyed Mr. Clinton pulled out his key ring and "started twirling it on his finger like a six-shooter," according to one eyewitness. Andy Borowitz Huffington Post -- 1/8/08

NH Primary Could Make, Break Candidacies -- Republican Sen. John McCain and former Massachusetts Gov. Mitt Romney collided Tuesday in New Hampshire's first-in-the-nation primary, rivals in urgent need of a triumph in the campaign for the White House. Sens. Barack Obama and Hillary Rodham Clinton squared off in the Democratic race. By custom, the first handful of votes was cast, at midnight, in Dixville Notch, the state's northernmost precinct. By tradition, the first primary held the power to propel winners into the rush of primaries that follow — to send the also-rans home for good. DAVID ESPO and PHILIP ELLIOTT AP -- 1/8/08

Obama's Tipping Point -- All of this has come on the strength of Obama's victory in the Iowa caucuses and on the outpouring of emotion that has followed him in New Hampshire. That is slender evidence, certainly, of the staying power of what is propelling his candidacy. The coming weeks will offer a fuller answer to the question of how much staying power he has. But rarely have we seen the kind of fervor that has built up around Obama's candidacy. Dan Balz in the Washington Post -- 1/8/08

Duncan Hunter's next gig? -- California Republicans, already looking ahead from the first 2008 presidential election votes, are starting to float a new name for the 2010 gubernatorial race -- Rep. Duncan Hunter. Carla Marinucci Chronicle Politics Weblog -- 1/8/08

Doolittle invites past and present staff to Wednesday meeting -- Rep. John Doolittle, R-Roseville, was flying back to Sacramento Tuesday and has scheduled a meeting with his staff first thing Wednesday morning, according to an aide who asked for anonymity. David Whitney in the Sacramento Bee -- 1/8/08

Tiger attack draws scrutiny to San Francisco zoo director -- Since the deadly tiger escape at the San Francisco Zoo, its director has come under increasing criticism over his track record and his suggestion that the victims brought the attack on themselves by taunting the animal. JULIANA BARBASSA AP -- 1/8/08

What Californians want to hear from the governor -- Adam Skalet says he is suspicious of most politicians, even someone like Gov. Arnold Schwarzenegger who was a movie star long before he landed a corner office in the Capitol. Skalet, 42, smoking outside his family's jewelry business in Old Sacramento, lamented middle-class struggles in California. If Schwarzenegger wants to do something meaningful in today's annual State of the State address, Skalet suggested the governor call for lowering middle-class taxes while investing more in education and less in bureaucracy. Kevin Yamamura in the Sacramento Bee -- 1/8/08

State's budget issues trigger partisan divide -- Lawmakers returned Monday to a Capitol in fiscal chaos and, while acknowledging something must get resolved and soon, immediately drew partisan lines in the sand over possible solutions. Steve Geissinger in the San Jose Mercury -- 1/8/08

Ad Watch: Perata, Núñez targeted on term-limits measure -- Assembly Speaker Fabian Núñez and Senate President Pro Tem Don Perata are targets of a television advertising campaign launched this week to kill a ballot measure that would alter legislative term limits. Jim Sanders in the Sacramento Bee -- 1/8/08

Walters: Capitol's conviviality just facade -- State legislators exchanged hugs, handshakes and kisses Monday as they returned to the Capitol for another year of doing whatever it is that they do – which usually isn't much and may be even less this year. Dan Walters in the Sacramento Bee -- 1/8/08

Doolittle to reveal '08 plans -- Rep. John Doolittle on Monday summoned supporters to a meeting this week for "news about our plans for 2008" as the political community speculated he may be ready to bow out without seeking a 10th term in Congress. David Whitney in the Sacramento Bee -- 1/8/08

State of the State speech moved to afternoon -- In an unusual mid-afternoon start time, Gov. Arnold Schwarzenegger will deliver the annual State of the State speech today before a joint session of the Legislature and a TV audience drawn away from Oprah and Dr. Phil. Tom Chorneau in the San Francisco Chronicle -- 1/8/08

California mail-in voters a primary target -- Strategists are weighing when to lock in support for their candidates in the run-up to the Feb. 5 presidential primary. Cathleen Decker in the Los Angeles Times -- 1/8/08

Unaffiliated voters key to victory -- One lesson emerging from Iowa - and likely to be reinforced in today's New Hampshire primary - is the power of the independent voter in this year's presidential election. And in California, where one in five is registered as decline to state, these voters could make or break a candidate in the Democratic primary. Mary Anne Ostrom and Steve Harmon in the San Jose Mercury -- 1/8/08

Their last bids for the first primary -- Candidates show wear and tear in the push to stay alive in New Hampshire. A record turnout is expected. Mark Z. Barabak and Maria L. La Ganga in the Los Angeles Times Carla Marinucci in the San Francisco Chronicle -- 1/8/08

N.H. independents may hold key to future -- They can vote in either primary. Many are torn between Democrat Obama and Republican McCain. Maeve Reston and Doyle McManus in the Los Angeles Times -- 1/8/08

Ready to give Barack the part -- From the beginning, Hollywood has loved Obama's story -- his "pitch" as they say -- but was wary of his real box office potential. Tina Daunt in the Los Angeles Times -- 1/8/08

Chamber of Commerce vows to punish anti-business candidates -- Alarmed at the increasingly populist tone of the 2008 political campaign, the president of the U.S. Chamber of Commerce is set to issue a fiery promise to spend millions of dollars to defeat candidates deemed to be anti-business. Tom Hamburger in the Los Angeles Times -- 1/8/08

Game Day: New Hampshire -- Today is the day, the New Hampshire primary. The polls place Barack Obama and John McCain in the lead for their parties. I’ll be providing all-day coverage of New Hampshire and its meaning, weaving in reports from correspondents and contacts inside and outside of the Granite State. Bill Bradley NWN weblog -- 1/8/08

Bush, Democrats both support tax cuts -- but what kind? -- The president seeks to extend existing reductions. His adversaries want relief for the middle class. Maura Reynolds and P.J. Huffstutter in the Los Angeles Times -- 1/8/08

Did San Francisco give up too much control, let its zoo run wild? -- San Francisco leaders are considering changes to the 15-year-old agreement that turned over control of the city's zoo to a nonprofit group, effectively relinquishing the city's direct oversight of an institution that at the time faced the loss of its accreditation because of conditions that one report described as "literally disgraceful." Wyatt Buchanan in the San Francisco Chronicle -- 1/8/08

After brief inauguration respite, Newsom to get down to business -- Mayor Gavin Newsom's inauguration today will feature all the ceremonial elements fit for the historic occasion: a serenade by a choir of children, a hand-on-the-Bible oath of office, even a "Beach Blanket Babylon" performer leading the crowd in the song "San Francisco." Cecilia M. Vega in the San Francisco Chronicle -- 1/8/08

Vallejo Mayoral loser files suit to overturn vote -- Former Vallejo City Councilman and mayoral candidate Gary Cloutier filed suit Monday in an attempt to void the results of the November election, which his chief opponent, Osby Davis, won by two votes. Christopher Heredia in the San Francisco Chronicle -- 1/8/08

Unions pump $1 million into phone-tax campaign -- Organized labor has contributed more than $1 million to help Los Angeles Mayor Antonio Villaraigosa persuade voters to approve a Feb. 5 ballot measure that would maintain the city's telephone utility users tax. Kerry Cavanaugh in the Los Angeles Daily News -- 1/8/08

Off-site casinos appearing unlikely -- A San Diego County tribe's bid to build a large, off-reservation casino in Barstow appears to have been dealt a fatal blow by the federal government. James P. Sweeney in the San Diego Union-Trib -- 1/8/08

Gambling deal foes bicker over state's take -- Depending on whom you ask, the four gambling deals up for a vote in the Feb. 5 election will generate more than $400 million a year or create a net loss of $60 million for the state. EDWARD SIFUENTES in the North County Times JIM MILLER in the Riverside Press -- 1/8/08

State gets wake-up call on college -- About 44% of students enroll within year after high school; legislation aims to boost numbers. Neil Gonzales in the Oakland Tribune -- 1/8/08

UC appeals $34M judgment on student fees -- The University of California has asked the state Supreme Court to review a $34 million judgment, which has grown to $40 million with interest. Matt Krupnick in the Oakland Tribune -- 1/8/08

Retiree healthcare crisis brewing in state -- Panel urges California to set aside $1.2 billion for future costs. Some criticize 'extravagant' benefits given to public employees. Evan Halper in the Los Angeles Times Gilbert Chan in the Sacramento Bee Harrison Sheppard in the Los Angeles Daily News Ed Mendel in the San Diego Union-Trib Ryan Huff in the Oakland Tribune Dan Borenstein in the Contra Costa Times -- 1/8/08

Healthcare costs topped $2 trillion in 2006 -- The federal share of Medicare drug bills rose significantly in the first full year of the prescription benefit. Ricardo Alonso-Zaldivar in the Los Angeles Times -- 1/8/08

Study challenges drug's role in autism -- The prevalence of autism in California children continued to rise after many vaccine manufacturers started to remove the mercury-based preservative thimerosal in 1999, suggesting that the chemical was not a primary cause of the disorder, according to a study released Monday. Jia-Rui Chong in the Los Angeles Times Erin Allday in the San Francisco Chronicle Barbara Feder Ostrov in the San Jose Mercury -- 1/8/08

Feds to enforce tighter restrictions to help prevent Medicare fraud -- The effort against equipment suppliers is to be announced today. Molly Hennessy-Fiske in the Los Angeles Times -- 1/8/08

Heart ailments linked to terror worries -- Even people without any connection to the 9/11 attacks are affected, UC Irvine researchers find. Tony Barboza in the Los Angeles Times -- 1/8/08

High hopes for diabetes drug that mimics healthy lifestyle effects -- A small Cambridge, Mass., startup is betting it can mimic the healthful benefits of diet and exercise with a pill, an entrancing possibility that has earned Sirtris Pharmaceuticals a ton of press coverage in the past few years. Bernadette Tansey in the San Francisco Chronicle -- 1/8/08

Spike in cancers probed -- State and Butte County health officials will hunt for a possible environmental culprit in a cancer spike detected near Oroville. Dorsey Griffith in the Sacramento Bee -- 1/8/08

State proposes to take control of home temps -- California utilities would control the temperature of new homes and commercial buildings in emergencies with a radio-controlled thermostat, under a proposed state update to building energy efficiency standards. BRADLEY J. FIKES in the North County Times -- 1/8/08

Gasoline prices up despite sinking oil -- Crude oil fell sharply on the New York futures market Monday, down $2.82 to $95.09 a barrel, on concerns that a cooling U.S. economy would curb demand. But retail gasoline prices were still playing catch-up and climbed higher over the last week in California and the U.S., the Energy Department said. Ronald D. White in the Los Angeles Times -- 1/8/08

Despite drenching, a plea to save water -- The weekend wave of winter storms that plowed through California drew a sigh of relief from drought-weary water officials, but it didn't completely wash away their anxiety. Michael Gardner in the San Diego Union-Trib -- 1/8/08

Groups cite oil leases in U.S. delay on rating polar bear's status -- Environmental groups fear that political meddling and a rush to sell oil leases in Arctic waters are behind the Bush administration's announcement Monday that it will miss a legal deadline to determine whether to list the polar bear under the Endangered Species Act. Jane Kay in the San Francisco Chronicle -- 1/8/08

More than 14,000 PG&E customers still waiting for lights to come on -- Pacific Gas and Electric Co. officials hope to restore power to all urban areas by Tuesday at the latest, spokesman Keely Wachs said. Customers in rural areas, however, may have to wait until the end of the week, he said. Marisa Lagos in the San Francisco Chronicle -- 1/8/08

Residents tough it out as they await their turn on utility repair list -- On a fourth day without power or water, Dunnigan resident Steve Dyer was getting understandably testy Monday. For the past three nights, after carrying water from the swimming pool to flush their toilet and watching television news on a set powered by a small generator, he and his wife had turned in at 6 p.m. under a pile of comforters. Hudson Sangree in the Sacramento Bee -- 1/8/08

Recluses in Bolinas wish PG&E would hurry up and turn on the lights -- The people of Bolinas, famous for removing destination signs to keep out the bad karma that emanates from all other places, would welcome some work crews from PG&E, regardless of their spiritual energy. Peter Fimrite in the San Francisco Chronicle -- 1/8/08

Don’t pollute the Delta -- Water from storm runoff sends trash, fertilizers, chemicals to waterways. Alex Breitler in the Stockton Record -- 1/8/08

Carona's on the job, but not at his desk -- Orange County's sheriff returns from his leave of absence but doesn't show at headquarters. He spends the day in off-site meetings. Stuart Pfeifer in the Los Angeles Times -- 1/8/08

Hundreds attend funeral Mass in San Jose for zoo tiger's victim -- Hundreds of people crowded into a San Jose church on Monday night to attend a funeral Mass for Carlos Sousa Jr., the 17-year-old boy who was killed Christmas Day by an escaped tiger at the San Francisco Zoo. John Coté, John King in the San Francisco Chronicle -- 1/8/08

Zoo mauling victims' attorney decries 'character assassination' -- The attorney for the two brothers who survived the fatal tiger attack at the San Francisco Zoo has accused officials there of knowingly maintaining a tiger grotto that "couldn't hold a house cat" and demands that city officials apologize for waging a "character assassination campaign" against his clients. Jaxon Van Derbeken in the San Francisco Chronicle -- 1/8/08

Zoo denies lawyer's claim about tiger pen wall -- Five years before the Christmas Day tiger attack, San Francisco Zoo workers measured the tiger enclosure wall and proclaimed it so low that it "couldn't hold a house cat," the lawyer representing two mauled San Jose brothers charged in a letter released Monday. Julia Prodis Sulek and Linda Goldston in the San Jose Mercury -- 1/8/08

L.A.'s settlement process needs reform, audit finds -- City controller says a weak risk-management system, poor oversight leads the city to make big payouts in lawsuits. Jean-Paul Renaud in the Los Angeles Times -- 1/8/08

Guidebook helps banks tap into booming immigrant remittance market -- The millions of immigrants who send money to relatives back home, be it India or El Salvador, are part of a potentially huge new market for banks. Tyche Hendricks in the San Francisco Chronicle -- 1/8/08

Skid row's neediest may get housing and care -- Los Angeles' 50 most 'at risk' transients have been identified. Today, the county votes on a program to house them. Susannah Rosenblatt in the Los Angeles Times -- 1/8/08

Freed without bail -- with a deadly result -- 'Unsuitable for release,' Curtis Harris still got out. He apparently shot his wife, then himself. Andrew Blankstein, Mitchell Landsberg and Paloma Esquivel in the Los Angeles Times -- 1/8/08

San Francisco Caltrans station offers valet parking for bicyclists -- A valet service for bicyclists who commute on Caltrain will get an official welcome Wednesday in yet another acknowledgement by Bay Area transportation officials that pedal-power has arrived as a viable alternative to the private automobile. Rachel Gordon in the San Francisco Chronicle -- 1/8/08