Prop. 8 supporters file challenge to campaign donor laws -- The Proposition 8 campaign has filed a federal suit challenging the constitutionality of California's campaign finance laws that compel disclosure of personal information by campaign donors who they said have been threatened and harassed. Aurelio Rojas in the Sacramento Bee Nicole C. Brambila in the Desert Sun -- 1/8/09

Ex-eBay chief seeks to reclaim name in cyberspace -- But the former chief executive of eBay, Meg Whitman, has been unable to control her own name on the Internet. What began as an irritant has evolved into a distracting legal spat as she explores a run for California governor. JULIET WILLIAMS AP -- 1/8/09

Chevron Sees Significantly Lower Fourth-Quarter Earnings -- Chevron Corp. expects to report a significant decline in fourth-quarter earnings amid receding energy prices and bigger-than-expected charges, and said its worldwide refining operations would continue to suffer from weak margins. JOHN KELL in the Wall Street Journal -- 1/8/09

First-grader takes gun to school -- A 6-year-old Victorville boy brought a loaded .45-caliber pistol to school after he found the stolen weapon in his father's car, San Bernardino County sheriff's officials said Thursday. RICHARD BROOKS in the Riverside Press -- 1/8/09

Winemaker loses bid for pardon, but offers case study in navigating the process -- California winemaker Fred T. Franzia sought a presidential pardon in hopes of wiping the slate clean from an old grape fraud case for which he paid a $500,000 fine and served five years on probation. MICHAEL DOYLE in the Sacramento Bee -- 1/8/09

Union heads to court to halt county layoffs -- Over the past several weeks, Orange County’s largest public union – the Orange County Employees Association - has thrown just about every punch it has to halt the county’s effort to lay off workers. NORBERTO SANTANA JR. in the Orange County Register -- 1/8/09

State school board creates African American advisory group -- The California State Board of Education voted today to create an African American Advisory Committee to better understand issues concerning the achievement gap between African American students and their counterparts. Walter Yost in the Sacramento Bee -- 1/8/09

Second-hand stores to be exempt from new lead testing law on children's products -- Federal regulators say such shops won't be required to test used merchandise for lead by Feb. 10. But they can't sell items that exceed lead limits and should 'avoid' products that may contain lead. Alana Semuels in the Los Angeles Times -- 1/8/09

Katzenberg says Madoff losses dire for his philanthropy -- Hollywood mogul Jeffrey Katzenberg says the losses on his personal investments with Bernie Madoff have done "extraordinary damage" to his philanthropic efforts. Tom Petruno in the Los Angeles Times -- 1/8/09

Borrowing $23.3 billion for state budget won't be easy, analyst says -- Shaky credit markets will make it difficult for the state to access capital for Gov. Arnold Schwarzenegger's proposal, which he intends to submit to the Legislature on Friday. Jordan Rau in the Los Angeles Times Kevin Yamamura in the Sacramento Bee Matthew Yi in the San Francisco Chronicle Mike Zapler in the San Jose Mercury John Myers Capitol Notes weblog -- 1/8/09

Analyst offers mostly good review of governor’s budget plan -- The state’s most respected budget analyst released today a mostly favorable review of Gov. Arnold Schwarzenegger’s recent budget plan. Legislative Analyst Mac Taylor calls the governor’s plan a “good faith effort to close a colossal budget gap,” which for the Legislative Analyst qualifies as almost a rousing endorsement. BRIAN JOSEPH in the Orange County Register -- 1/8/09

LAO: Schwarzenegger plan is 'a good faith effort' -- The nonpartisan Legislative Analyst's Office has released its first blush report on Gov. Arnold Schwarzenegger's plan to close California's roughly $40 billion budget gap, saying the plan is "generally is built upon reasonable numbers." Shane Goldmacher SacBee Capitol Alert -- 1/8/09

Steinberg talks budget, 'God's work' and ghosts -- Pinching his index and thumb together so close they nearly touched, Steinberg declared Democrats and the governor were "this close" in negotiations over the weekend. Shane Goldmacher SacBee Capitol Alert -- 1/8/09

Lawmakers propose bill for BART Police oversight -- A pair of Bay Area lawmakers want to increase accountability and public oversight for BART Police in the wake of an officer's fatal shooting of an unarmed man early on New Year's Day in Oakland. Josh Richman in the Contra Costa Times -- 1/8/09

State high court backs consumers in health care billing -- In a ruling with broad implications for health care consumers, the California Supreme Court has ruled that medically insured patients may not be billed for emergency care that their health plans refuse to pay. Bobby Caina Calvan in the Sacramento Bee -- 1/8/09

Citi reaches deal with lawmakers on altering home loans -- A trio of Democratic senators say they have reached a deal with Citigroup on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures. Alan Zibel AP -- 1/8/09

Carona trial: Jury starts deliberations -- The case of ex-lawman Mike Carona was handed over to jurors today, after a federal prosecutor questioned Carona’s motivations in choosing his inner circle and defended the reliability of government witnesses. Rachanee Srisavasdi in the Orange County Register -- 1/8/09

$4.4 million in cash perk taken by Orange County managers -- An Orange County management perk intended to pay for education and career improvement courses is instead being used as a cash bonus by administrators who are taking the money without having to disclose how it is spent. TONY SAAVEDRA in the Orange County Register -- 1/8/09

Schwarzenegger proposes 5 fewer school days -- Faced with a massive budget deficit, the governor wants to stop state funding for a week of classes. Educators criticize the plan as most harmful to poor students. Seema Mehta in the Los Angeles Times John Howard in Capitol Weekly -- 1/8/09

Time to end budget feuds, governor says -- As he compared political divisions in the state Capitol to feuds in Northern Ireland, Gov. Arnold Schwarzenegger said Wednesday he hopes Democrats and Republicans reach a budget accord in three weeks despite long-standing disputes. Kevin Yamamura and Steve Wiegand in the Sacramento Bee Mike Zapler in the Oakland Tribune -- 1/8/09

Governor, legislative leaders to talk budget -- Gov. Arnold Schwarzenegger said Wednesday he will meet today with Democratic and Republican legislative leaders to restart budget negotiations, using his budget as a template to bridge the state's looming $41.5 billion deficit during the next 18 months. Matthew Yi in the San Francisco Chronicle Steve Lawrence AP -- 1/8/09

Finger-pointing starts after state budget veto -- With state government careening toward what Gov. Arnold Schwarzenegger has warned could become a “financial Armageddon” and negotiations over a budget-balancing package now back at square one following Schwarzenegger’s veto of a Democratic-backed plan, an obvious question arises: What’s the holdup? Timm Herdt in the Ventura Star -- 1/8/09

For new Legislature’s members, the tasks are daunting -- Most candidates for the state Legislature – and I was no exception – say they’re ready to “hit the ground running on Day 1.” Rarely, however, do they get to prove it. Bonnie Lowenthal in Capitol Weekly -- 1/8/09

SEIU Local 1000 says its cost-cutting proposal would save state $150 million -- The proposals include expediting early retirement and freezing health-care contributions at last year’s levels. There was no immediate response from the administration. The item is in Capitol Weekly -- 1/8/09

Skelton: Obama takes the best California has to offer -- Thanks a bunch, Mr. President-elect. You've just taken away California's best hope for government and political reform -- reform necessary to save this state. George Skelton in the Los Angeles Times -- 1/8/09

San Bernardino County assessor admits abusing drugs -- Bill Postmus, 37, apologizes to supervisors and says his drug use did not interfere with his service as a public official. He vows not to seek reelection when his term expires in 2011. David Kelly in the Los Angeles Times -- 1/8/09

Lawsuit seeking to block California Democrats' tax hikes is tossed out -- An appellate court says it cannot rule on the $9.3-billion package because the governor vetoed the legislation hours after the suit was filed. Evan Halper in the Los Angeles Times -- 1/8/09

Hiltzik: The wrong people pay for Schwarzenegger's busted budget -- The state's wealthiest residents would make out just fine under his plan to cut services, hike taxes. Michael Hiltzik in the Los Angeles Times -- 1/8/09

State contractors’ payments delayed by budget crisis -- State payments for more than three dozen public works projects are being held up as the state grapples with an unprecedented budget shortage, contractors say. John Howard, and Malcolm Maclachlan in Capitol Weekly -- 1/8/09

Schwarzenegger loses the rank and file -- A crisis doesn't build relationships. It reveals them. Little wonder, then, that California's budget fiasco has exposed the deep antipathy many state workers hold for Gov. Arnold Schwarzenegger. Jon Ortiz in the Sacramento Bee -- 1/8/09

Budget cuts target California Conservation Corps -- The Schwarzenegger administration's recession-driven budget would dismantle the California Conservation Corps, an iconic state agency that became a national model for tapping at-risk youth, and shift the CCC's functions to a dozen local county conservation programs funded largely by nonprofits. John Howard in Capitol Weekly -- 1/8/09

Capitol politics through the looking glass -- The paradoxes are everywhere in the ongoing battle to close the state’s budget gap. Gov. Arnold Schwarzenegger is pushing for an economic stimulus package, even as he is advocating a tax increase – the antithesis of economic stimulus. Meanwhile, Democrats are holding out for environmental safeguards on transportation projects, even though their leaders sponsored a bill that eliminated similar regulations for housing projects just months ago. Anthony York in Capitol Weekly -- 1/8/09

Schwarzenegger promises a labor pick on Cal-OSHA Board of Appeals -- State Senate President Pro Tem Darrell Steinberg said Wednesday that he had a commitment from Gov. Arnold Schwarzenegger to nominate a labor representative to a long-vacant position on the three-person occupational safety appeals board. Susan Ferriss in the Sacramento Bee -- 1/8/09

Obituary: Former California Assembly speaker Monagan dies -- Robert T. Monagan, one of the few Republicans to serve as speaker of the California Assembly and a longtime fixture in Capitol politics, died Wednesday in Sacramento. He was 88. Robert D. Dávila in the Sacramento Bee Alex Breitler in the Stockton Record Greg Lucas California's Capitol weblog -- 1/8/09

State cancels computer modernization contract -- Citing missed work deadlines and other problems, the state has terminated a $69 million contract with BearingPoint Inc. of McLean, Va. Mark Glover in the Sacramento Bee -- 1/8/09

Democrats widen their lead in Capitol office space race -- Democrats didn’t just pick three seats in the Legislature in the November elections. They also appear to have slightly widened their advantage when it comes to Capitol office space. Malcolm Maclachlan in Capitol Weekly -- 1/8/09

Solis likely to win labor position -- Rep. Hilda Solis's future as labor secretary could be as good as sealed Friday during a Senate confirmation hearing. Rebecca Kimitch in the Inland Daily Bulletin -- 1/8/09

Dellums won't close door on possible Obama administration job -- Mayor Ron Dellums left open the possibility of accepting — if he is offered — a position in President-elect Barack Obama's administration Wednesday but said he remains focused on his work in Oakland. Kelly Rayburn in the Oakland Tribune -- 1/8/09

Californians battle swamped state phone lines to get jobless benefits -- Unemployed workers seeking jobless benefits have overwhelmed state phone lines, leaving some frustrated callers to give up and instead pile into employment offices in hopes of speeding up the process. Andrew McIntosh in the Sacramento Bee -- 1/8/09

Housing downturn hits L.A. area rents -- Overbuilding and foreclosures add to supply of units as the recession limits what people can pay. Peter Hong and David Pierson in the Los Angeles Times -- 1/8/09

Fewer apply for home loans; credit line delinquencies increase -- The average interest rate for 30-year mortgages rises, while rates for 15-year and adjustable-rate loans fall. E. Scott Reckard in the Los Angeles Times -- 1/8/09

Venture capitalist says U.S. losing green race -- Silicon Valley venture capitalist John Doerr, whose early investments helped launch Google and Amazon, delivered a stark warning to Congress on Wednesday that the United States is on the verge of being left behind in the green tech revolution. Zachary Coile in the San Francisco Chronicle Frank Davies in the San Jose Mercury -- 1/8/09

San Francisco Yelp user faces lawsuit over review -- In a case that could chill free speech online, a San Francisco chiropractor has sued a local artist over negative reviews published on Yelp, the popular Web site that rates businesses. Deborah Gage in the San Francisco Chronicle -- 1/8/09

10 percent capital jobless rate in '09 forecast by Sacramento review -- A new forecast says unemployment will hit 10 percent in Sacramento this year. That's the most striking finding from the premiere issue of the Sacramento Business Review, a regional economic forecast assembled by the College of Business Administration at California State University, Sacramento, and the Chartered Financial Analyst Institute. Dale Kasler in the Sacramento Bee -- 1/8/09

Casino construction halts; Thunder Valley mulls total expansion -- The once-bustling construction site next to Thunder Valley casino looks like a high-rise ghost town, with pillars and rebar and empty cranes that disappeared into the fog Wednesday. And no workers. Bob Walter in the Sacramento Bee -- 1/8/09

Macy's will shut down 11 stores -- Stores slated for closure include locations in Los Angeles, West Palm Beach, Nashville and St. Louis, among others. Cincinnati-based Macy's Inc. says the closures will cost about $65 million, most of which will be booked in the 2008 fourth quarter. AP -- 1/8/09

ReelzChannel relocating to Albuquerque -- ReelzChannel, hit by the ad slowdown, is lured by Albuquerque cost incentives. Meg James in the Los Angeles Times -- 1/8/09

Rethinking affirmative action -- In an effort to increase minority enrollment at state universities, an assemblyman has proposed legislation that would amend Prop. 209. Jennifer Torres in the Stockton Record -- 1/8/09

Advanced Placement Italian exam to be suspended -- The College Board says the test won't be offered after this spring but could be revived if sufficient money is found. A fundraising effort by Italian Americans fell short. Larry Gordon in the Los Angeles Times -- 1/8/09

Capistrano Unified schools chief placed on administrative leave -- No explanation is offered for the school board's move against Supt. A. Woodrow Carter, which is the latest in a string of controversies to plague the district. Paloma Esquivel in the Los Angeles Times -- 1/8/09

Oakland schools' police chief steps down -- But a source familiar with the situation said Michel's resignation was primarily because he couldn't get a waiver that would allow him to work and continue receiving his retirement benefits from the Oakland Police Department, where he served for 31 years before joining the small school district force as a lieutenant in 2007. Henry K. Lee in the San Francisco Chronicle -- 1/8/09

State's college stature on wane -- Once regarded as a national leader in higher education, California is quickly falling in the ranks as fewer young people graduate high school and enroll in college, according to a report released Wednesday by the California Faculty Association. Connie Llanos in the Long Beach Press Telegram -- 1/8/09

Sewage plants, industry discharging toxic pollutants into L.A. County waters -- The study by the environmental group Heal the Bay faults state and regional quality regulators, alleging they've been lax in enforcing and adopting strong discharge standards. Bettina Boxall in the Los Angeles Times -- 1/8/09

Governor, Democrats collide over environmental exemption for Hwy. 50 project -- With the clock ticking toward insolvency, talks on fixing California's budget this week hit a bottleneck on Highway 50 in Rancho Cordova – where officials are at odds over the state's iconic and controversial environmental protection law. Tony Bizjak in the Sacramento Bee -- 1/8/09

Developer wins suit against L.A. over El Sereno housing tract project -- A judge rejects the City Council's demand that Monterey Hills Investors, which sought to build 24 homes on a hillside, do a new environmental report. The developer will seek to recoup losses. David Zahniser in the Los Angeles Times -- 1/8/09

Port of Oakland, regulators fight over clean air funds -- An agreement between two public agencies to cut diesel truck pollution from the Port of Oakland has turned into a tug of war over $5 million the port wants to keep in reserve and the Bay Area's air pollution board wants to use to clean the air. Denis Cuff in the Oakland Tribune -- 1/8/09

On a rescue operation -- Sea bird experts up and down the West Coast are sounding the alarm about hundreds of California brown pelicans dying or becoming injured by bad weather or a mysterious malady. Mike Lee in the San Diego Union-Trib -- 1/8/09

Continental Airlines uses biofuel on test flight -- The carrier uses an algae-and-weed mix to help power one of two engines during a two-hour flight. Peter Pae in the Los Angeles Times -- 1/8/09

Health care is on sickbed -- California hospitals are feeling the symptoms of an ailing economy as consumers find it harder to pay medical bills, more uninsured patients rely on emergency rooms and fewer people opt for elective care, according to a report released Wednesday by the California Hospital Association. Bobby Caina Calvan in the Sacramento Bee Ken Carlson in the Modesto Bee -- 1/8/09

Garamendi proposes fast-track medical school at UC-Merced -- Lt. Governor John Garamendi, who is also a University of California regent, envisions a program at the University of California-Merced which would create more Central Valley-grown family doctors, using an educational approach that is cheaper, quicker and less specialized than traditional schools. Lisa M. Krieger in the San Jose Mercury -- 1/8/09

L.A. may restrict outdoor smoking -- Lighting up on patios and other areas near restaurants could be illegal by summer if the City Council acts. Maeve Reston in the Los Angeles Times -- 1/8/09

Medical helicopter pilots urge hospitals to help improve safety -- Even before a casino bus crash caused an air traffic jam at UC Davis Medical Center last fall, medical helicopters had at least two close encounters with other aircraft near Sacramento in 2008, prompting anxious meetings among helicopter operators. Carrie Peyton Dahlberg in the Sacramento Bee -- 1/8/09

At region's new hospital, creature comforts count -- Hallways lined with paintings of beach scenes and pale-green fabric inspired by sea foam. High-definition televisions in every room. Large windows bathed in sunlight. Eucalyptus veneer giving a nod to the aromatic groves that fill local parks. Keith Darce in the San Diego Union-Trib -- 1/8/09

Protests over BART shooting turn violent -- A protest over the fatal shooting by a BART police officer of an unarmed man mushroomed into several hours of violence Wednesday night as demonstrators smashed storefronts and cars, set several cars ablaze and blocked streets in downtown Oakland. Demian Bulwa, Charles Burress, Matthew B. Stannard, Matthai Kuruvila in the San Francisco Chronicle JESSE McKINLEY in the New York Times -- 1/8/09

Officer in BART shooting abruptly resigns -- The BART police officer who shot an unarmed man to death on a station platform early on New Year's Day quit the force Wednesday, avoiding an interview with police internal affairs investigators trying to get to the bottom of an incident that has prompted broad outrage. Demian Bulwa, Henry K. Lee in the San Francisco Chronicle Sean Maher and Josh Richman in the Oakland Tribune -- 1/8/09

BART shooting victim recalled with joy, tears -- After his daughter was born four years ago, Oscar Grant kept on driving around with two huge pink flags on his car that proclaimed, "It's a girl," until the material disintegrated. Henry K. Lee in the San Francisco Chronicle -- 1/8/09

Corruption case against former Orange County sheriff hinges on star witness' credibility -- Defense attorneys portray Don Haidl, the wealthy businessman who testified he bribed Michael Carona and lavished him with gifts, as a liar who received a sweet plea deal. Christine Hanley and Stuart Pfeifer in the Los Angeles Times Gillian Flaccus AP -- 1/8/09

Metrolink report urges safety guidelines -- Agency needs to do more to monitor employees and keep board members informed, according to experts studying last year's fatal crash. Steve Hymon in the Los Angeles Times -- 1/8/09

Grand jury report rips Contra Costa's handling of labor negotiations -- Contra Costa negotiators are so ill-equipped to negotiate with unions that an economic catastrophe could occur, the county's grand jury warned as it released its first report of the new term Wednesday. Matthias Gafni in the Contra Costa Times -- 1/8/09

Soledad cross foes want order reversed -- Opponents of the cross atop Mount Soledad urged a U.S. appeals court yesterday to overturn a federal judge's ruling in July that said the controversial La Jolla landmark could remain. Greg Moran in the San Diego Union-Trib -- 1/8/09