California legislators' inaction hits them in the pocketbook -- The state controller withholds their per diem and travel expenses because the treasury has run out of cash. Patrick McGreevy in the Los Angeles Times -- 2/4/09

Political pressure cooking -- As budget talks to solve California's $42 billion deficit continue behind closed doors in Sacramento, outside interest groups are getting antsy about what the final result might look like. Wyatt Buchanan Chronicle Politics weblog -- 2/4/09

Lopez: Give up the yacht AND the personal trainer? -- ALL STREET CEO: Hi, honey, I'm at the office and I've got horrible news. CEO WIFE: Oh, my gosh. Is Obama cutting back on the bailout? CEO: It's worse than that. He's ordering pay cuts for Wall Street bosses whose companies get handouts. Steve Lopez in the Los Angeles Times -- 2/4/09

Rackauckas stopped probe into campaign contributor -- Orange County District Attorney Tony Rackauckas testified Wednesday that he ordered investigators to halt a 2000 probe into the activities of his friend and wealthy campaign contributor, Patrick DiCarlo, because he first wanted to examine evidence personally to see whether an investigation was warranted. RACHANEE SRISAVASDI in the Orange County Register -- 2/4/09

Gays would lose few legal rights with marriage ban -- The upcoming Prop. 8 hearing won't change existing domestic partnership provisions, but gay couples saying the word 'marriage' carries benefits of its own. Martin Wisckol in the Orange County Register -- 2/4/09

Senate approves $15,000 tax credit for homebuyers -- The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan. DAVID ESPO AP -- 2/4/09

Digital TV conversion delayed until June 12 -- Television viewers who rely on sets with antennas to pick up their broadcast signals have about four extra months to get ready for the nation's switch to digital TV. Ryan Kim in the San Francisco Chronicle -- 2/4/09

Obama tells California what it would get from stimulus plan -- The White House is doing a full court press to get President Barack Obama’s stimulus plan passed. Dena Bunis in the Orange County Register -- 2/4/09

More TARP funds for the Valley -- Central Valley Community Bank has received $7 million in federal funds from the U.S. Treasury's Capital Purchase Program -- part of the $700 billion federal bank bailout known as the Troubled Asset Relief Program or TARP. Tim Sheehan in the Fresno Bee -- 2/4/09

Valley conservatives disavow fed earmark funds -- More San Joaquin Valley conservatives are shunning earmarks, even as Valley counties come asking for federal help. Michael Doyle in the Fresno Bee -- 2/4/09

Cisco's profits plunge -- The global downturn is not sparing normally resilient Cisco Systems, which on Wednesday reported a 28 percent year-over-year drop in profits during the second quarter. John Boudreau in the San Jose Mercury -- 2/4/09

Unions target Gilmore -- So we're left covering what the outside interest groups are up to. Today comes word that a coalition of unions are sending out mailers attacking Assembly Member Danny Gilmore, R-Hanford, for "picking the pockets of middle class families." EJ Schultz in the Fresno Bee Shane Goldmacher SacBee Capitol Alert -- 2/4/09

Feinstein refuses, yet again, to rule out run for governor -- That loud sigh rising over the state of California this week came from would-be candidates for governor, wishing that Sen. Dianne Feinstein would make up her mind already. John Wildermuth Chronicle Politics Weblog -- 2/4/09

"Waste, fraud and abuse" -- Those are the strong words coming from state Sen. Abel Maldonado, R-Santa Maria (Santa Barbara County), at a press conference earlier today blasting state Controller John Chiang for spending nearly $2 million since July on new office furniture for his staff. Wyatt Buchanan Chronicle Politics Weblog -- 2/4/09

Memorial Hospital to lay off 152; Petaluma Valley to trim 30 jobs -- Hospital officials have said the layoffs are necessary because of a multimillion-dollar dropoff in both revenue and government reimbursements. St. Joseph Health System in Sonoma County has more than 2,600 employees. MARTIN ESPINOZA in the Santa Rosa Press -- 2/4/09

Santa Rosa police warned of 45 layoffs -- Layoffs could come this June to as many as 45 Santa Rosa Police officers and managers, employees were warned Wednesday. LAURA NORTON in the Santa Rosa Press -- 2/4/09

Acting Labor secretary named while Solis awaits vote -- President Obama has named an acting Labor secretary while his top choice for the post, Rep. Hilda Solis (D-Calif.), is being blocked in the Senate. Walter Alarkon The Hill -- 2/4/09

Advocates urge Obama to halt medical pot raids -- Drug reform advocates are challenging the Obama Administration to deliver on a campaign promise to halt federal interference with California and other states allowing medical marijuana use. Josh Richman Political Blotter weblog -- 2/4/09

Panetta raked in cash for speeches -- Panetta, whose nomination to be CIA director will go before the Senate Intelligence Committee Thursday afternoon, last year earned $250,000 on the speaking circuit and another $790,000 in fees from consulting fees and board directorships, according to a disclosure statement he filed with Office of Government Ethics. KENNETH P. VOGEL Politico -- 2/4/09

California's low credit rating: Investors win, taxpayers lose -- When the state of Georgia sold 10-year bonds on Monday, it paid an annualized tax-free interest yield of 2.99% to the investors who bought the IOUs. If California tried to sell 10-year bonds now, it probably would have to pay about 4%. Tom Petruno in the Los Angeles Times -- 2/4/09

Buy a car, get a (tax) break -- On the same day automakers reported their worst January sales in the U.S. in 27 years, the Senate voted to approve a tax break for Americans who take the incredibly bold step of walking into a showroom and — gasp! — buy a new car. Martin Zimmerman in the Los Angeles Times -- 2/4/09

Why Chiang says computers can handle furlough but not pay cut -- John Thomas Flynn, the state's former chief technology officer, told me this morning that he would be surprised if Controller John Chiang could implement the furlough order with his antiquated computer system. Chris Reed in the San Diego Union-Trib -- 2/4/09

UC committee votes to change admissions rules -- The new rules would lower the number of high school seniors guaranteed admission to UC but expand the number of students whose applications would be considered by admissions officers. The full Board of Regents is set to vote on the proposal on Thursday. TERENCE CHEA AP -- 2/4/09

State higher ed systems ally to improve transfers -- California's public colleges and universities will work together to improve transfer rates from community colleges to four-year schools, higher-education leaders announced today. Matt Krupnick in the Contra Costa Times -- 2/4/09

Judges ask California lawmakers to fix crowded prisons -- A special panel of federal judges is pleading with California politicians to fix the state's overcrowded prisons and prevent the court-ordered release of tens of thousands of inmates. Don Thompson AP -- 2/4/09

L.A. campaigns hoping to tap into Obama's pool of new voters -- With the March 3 primary approaching, campaigns are targeting voters who registered last year so they could support Barack Obama's presidential campaign. Phil Willon and Jennifer Oldham in the Los Angeles Times -- 2/4/09

California's deficit, as big as it is, not the worst -- The immensity of California's budget crisis is shown in a new 50-state fiscal survey by the National Conference of State Legislatures, indicating that California's income-outgo gap is nearly a third of the current state budget deficits for entire nation. Dan Walters SacBee Capitol Alert -- 2/4/09

Herdt: When the deal hits the fan -- In a grand show of both urgency and bipartisanship, Darrell Steinberg, the new leader of the California Senate, announced in December that every single senator would be a member of the Budget Committee. Timm Herdt in the Ventura Star -- 2/4/09

Congress in the Driver's Seat -- They responded to Obama's support of the California effort, which 13 other states are poised to follow, by sending more lobbyists into statehouses. They have spent an estimated $10 million in legal fees to challenge efforts in California, Vermont, Rhode Island and New Mexico, according to Sierra Club lawyer David Bookbinder, who is fighting automakers' actions. Kimberly Kindy and Kendra Marr in the Washington Post -- 2/4/09

Only in San Francisco? Recession-era protests of "Made in America" business -- There's a recession, but that isn't stopping protesters in San Francisco, who complain that a popular clothing firm -- one that boasts its products are all made in America -- now actually wants to open its doors for business here, not close them. Carla Marinucci in the San Francisco Chronicle -- 2/4/09

The Gregg bombshell -- No one in Washington has been more persistent or more passionate about reining in entitlement programs, which the GAO tallies at $53 trillion in unfunded liabilities. Carolyn Lochhead in the San Francisco Chronicle -- 2/4/09

  •  Cyclist hospitalized after hit-and-run in Oakland -- A hit-and-run collision in Oakland on Wednesday morning left a bicycle rider in a local hospital with life-threatening injuries and police searching for the driver of a dark blue pick-up truck, police said. Sean Maher in the Oakland Tribune -- 2/4/09

Eight-year legal battle over Oakland `Riders' firings ends -- Oakland was within its rights to fire two officers at the center of the Riders police misconduct scandal in 2000, an arbitrator has determined. Kelly Rayburn in the Oakland Tribune -- 2/4/09

JetBlue, Virgin America announce low fares from LAX to East Coast -- The rival carriers begin offering $105 one-way fares to Boston and New York, setting the lowest such prices in recent memory for high-demand summer travel. Peter Pae in the Los Angeles Times -- 2/4/09

County rehired convicted rapist shortly after firing him -- A county hospital X-ray technologist fired last August because of his past convictions for rape was rehired a short time later by county health managers to work at an East Los Angeles county health clinic that serves pregnant women, officials acknowledged today. Garrett Therolf in the Los Angeles Times -- 2/4/09

Bonds used 'the clear' in '03 season, feds say -- Former Giants slugger Barry Bonds used the BALCO designer steroid "the clear" during the 2003 baseball season and also was taking a female fertility drug that can mask drug use on steroid tests, federal prosecutors say. Lance Williams, Bob Egelko in the San Francisco Chronicle -- 2/4/09

Riverside County Supervisors vote to sue state -- Riverside County supervisors voted Tuesday to sue the state to compel it to pay billions of dollars in funding for county-run social services, payments the state began delaying this week to conserve cash. JULIA GLICK in the Riverside Press Troy Anderson in the Torrance Daily Breeze -- 2/4/09

L.A. County threatens to withhold revenue from state -- Citing a $106-million budget deficit, supervisors threaten to retain funds that should go to Sacramento in order to pay for local health and social services. Molly Hennessy-Fiske in the Los Angeles Times Troy Anderson -- 2/4/09

State's Big Five keep talks secret for fear of dooming budget deal -- Five Californians are trying to solve the state's budget crisis, in part by keeping the other 38 million residents in the dark. Kevin Yamamura in the Sacramento Bee -- 2/4/09

Controller, unions keep California furlough fight alive in 2 courts -- With thousands of state workers facing their first unpaid day off on Friday, the fight over whether Gov. Arnold Schwarzenegger can legally cut employee hours and pay split into two courts on Tuesday. Jon Ortiz in the Sacramento Bee -- 2/4/09

Walters: Corporate tax issue has hidden agenda -- Senate Bill 28X was one of many "budget trailer bills" pushed through the Legislature last September with little or no debate or even analysis as part of a political deal to end a record-long stalemate on the state budget. Dan Walters in the Sacramento Bee -- 2/4/09

California bond rating drops lower than any other state's -- Standard and Poor's cites the budget impasse and near-empty treasury. Meanwhile, interest groups show growing resistance to possible compromises by legislators on labor issues and taxes. Jordan Rau and Patrick McGreevy in the Los Angeles Times STU WOO in the Wall Street Journal -- 2/4/09

California initiative spending at a glance -- Here are campaign spending totals for the 12 propositions on California's Nov. 4 ballot and the top donors to each campaign. The AP list is in the Sacramento Bee -- 2/4/09

Skirmish over state prison yoga rooms intensifies -- Court-appointed overseer defends his $8-billion prison construction plan -- including natural light and space for music and art therapy -- and points to similar a facility built under Schwarzenegger. Michael Rothfeld in the Los Angeles Times -- 2/4/09

Battle of words over prison health care continues -- State officials and the court-appointed receiver running California's prison health care system continued jousting Tuesday, with the receiver saying much of the cost the officials now complain about was of their own doing. Josh Richman in the Oakland Tribune -- 2/4/09

California Supreme Court to hear Prop. 8 arguments -- The justices announce a March 5 hearing on the constitutionality of the ban on same-sex marriage. Their decision will come within 90 days of the session. Maura Dolan and Jessica Garrison in the Los Angeles Times -- 2/4/09

Lopez: 97% in poll want Villaraigosa to debate, but he still refuses -- The question I put to readers last week was clear and direct: Should Los Angeles Mayor Antonio Villaraigosa debate his most prominent challenger, attorney Walter Moore? The response was swift and one-sided. Steve Lopez in the Los Angeles Times -- 2/4/09

Calvert, House Republicans slammed in ads for voting against stimulus proposal -- Democrats on Tuesday unleashed the first wave of an ad campaign attacking Inland Rep. Ken Calvert and other Republicans, prompting a swift GOP rebuttal. BEN GOAD in the Riverside Press -- 2/4/09

  •  Schwarzenegger pumps iron again -- a bicycle -- Yes, that was Gov. Arnold Schwarzenegger cruising along the American River bike and recreation trail Tuesday morning with a coterie of security guys in his wake. But aides say there is no truth to the rumor the governor is gearing up for this month's Tour of California bike race. Tony Bizjak in the Sacramento Bee -- 2/4/09

Delayed system updates a drag on state jobless claims -- Seven years after the federal government gave California $66.1 million to modernize its unemployment insurance call centers and claims processing systems, state workers are still manually processing claims that the jobless now submit online. Andrew McIntosh in the Sacramento Bee -- 2/4/09

Weintraub: Seeds of growth ready for fertile ground -- It could be that there are six or eight or 10 major industries that together will form the foundation for the new California economy. Daniel Weintraub in the Sacramento Bee -- 2/4/09

Boxer, Feinstein push for jobs, public works -- California Democratic Sen. Barbara Boxer says members of Congress must focus on three things as they put together an economic stimulus plan: jobs, jobs and more jobs. Rob Hotakainen in the Sacramento Bee -- 2/4/09

Sons of migrant farmworkers co-found promising Silicon Valley tech startup -- His parents were migrant farmworkers who worked the harvests of California and Washington state before wintering in their small hometown in rural Mexico. Bismarck Lepe, now 29, remembers how at age 5 he helped out in the strawberry fields. Scott Duke Harris in the San Jose Mercury -- 2/4/09

Senate cuts movie-industry tax break from stimulus bill -- Opponents say a provision to qualify new projects for an immediate 50% write-off is unnecessary and cite January's box-office haul of $1.03 billion. Jim Puzzanghera in the Los Angeles Times -- 2/4/09

Layoffs at Memorial Hospital start to roll out -- Hospital officials have said the layoffs are necessary because of multimillion-dollar declines in both revenue and government reimbursements. St. Joseph Health System in Sonoma County has more than 2,600 employees. The item is in the Santa Rosa Press -- 2/4/09

Historic tiny Sacramento County town has king-size problems -- In a 'state of perpetual crisis,' battered by mismanagement and the economy, Isleton may be California's most troubled community. Maria L. La Ganga in the Los Angeles Times -- 2/4/09

Law firm alleges age discrimination in Livermore lab layoffs -- An Oakland law firm on Tuesday announced its intention to file age discrimination complaints with a state agency on behalf of 100 workers laid off in May by Lawrence Livermore National Security. Suzanne Bohan in the Contra Costa Times -- 2/4/09

Million-dollar home sales plummet in California -- The million-dollar home became something of a rare bird in California last year, a victim of the continuing collapse in the housing market. Dale Kasler in the Sacramento Bee -- 2/4/09

U.S. Plans to Curb Executive Pay for Bailout Recipients -- The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan. EDMUND L. ANDREWS and VIKAS BAJAJ in the New York Times -- 2/4/09

Wells Fargo defends, then dumps plan for Vegas casino junket for mortgage officers -- Wells Fargo on Tuesday abruptly canceled a pricey Las Vegas casino junket for employees after a torrent of criticism that it was misusing $25 billion in taxpayer bailout money. Daniel Wagner and Matt Apuzzo AP -- 2/4/09

Both Parties Move to Aid Homeowners -- Four months after Congress tried to rescue the economy with a $700 billion bailout for the financial industry, Republicans and Democrats are suddenly competing to bail out financially struggling homeowners. EDMUND L. ANDREWS in the New York Times -- 2/4/09

Obama learns hard lesson as nominees pull out -- President Obama got a hard-knocks lesson in the "rule of threes" this week: One nominee with tax troubles is an embarrassment. Two nominees with tax troubles is a mess. But three nominees with tax troubles is a pattern that can do lasting damage to your image as a reformer. Zachary Coile in the San Francisco Chronicle -- 2/4/09

As Nominee Trips, Health Care Drive Suffers a Setback -- The abrupt collapse of Tom Daschle’s cabinet nomination on Tuesday undercut President Obama’s mission to expand health care by depriving him of an unusually well positioned architect for a big legislative campaign and leaving him without a backup plan. PETER BAKER and ROBERT PEAR in the New York Times -- 2/4/09

Is Obama's Honeymoon Over? -- Workers haven't even finished dismantling the inaugural reviewing stand on Pennsylvania Avenue outside the White House, yet already the new president has been beset by unruly congressional Democrats, uncooperative Republicans and, worst of all, a series of self-inflicted ethical wounds. Dana Milbank in the Washington Post -- 2/4/09

Senate Lacks Votes to Pass Stimulus -- Senate Democratic leaders conceded yesterday that they do not have the votes to pass the stimulus bill as currently written and said that to gain bipartisan support, they will seek to cut provisions that would not provide an immediate boost to the economy. Shailagh Murray and Paul Kane in the Washington Post -- 2/4/09

Obama moves to regain ground after 'self-induced injury' -- In five TV interviews, the new president admits errors and aims to take back control of the debate on an economic stimulus plan. Peter Wallsten in the Los Angeles Times -- 2/4/09

State school chief sees 'precarious' situation -- In his grimmest State of Education address yet, state Superintendent of Public Instruction Jack O'Connell pointed to a "precarious" school system all but collapsing under the weight of California's fiscal crisis. Nanette Asimov in the San Francisco Chronicle -- 2/4/09

Santa Clara University removes most land line phones from residence halls -- Santa Clara University sophomore Alyssa Lampe, 19, is pretty sure there's a phone in her dorm room, but she's never used it. When she needs to make a call, her T-Mobile Sidekick is always at the ready. Dana Hull in the San Jose Mercury -- 2/4/09

Community college workers agree to 4-day summer week -- Workers at Moorpark, Oxnard and Ventura colleges have agreed to work a four-day week over the summer, hoping to save the college district enough money to avoid layoffs. Jean Cowden Moore in the Ventura Star -- 2/4/09

Santa Rosa schools still can't guarantee transcripts are accurate -- Seven months into the current school year and four weeks since problems with senior transcripts gained public attention, Santa Rosa City Schools officials still cannot guarantee that official documents being produced by the new computer system are accurate. KERRY BENEFIELD in the Santa Rosa Press -- 2/4/09

In rural Newman, profanity gets a book banned -- The school board cuts 'Bless Me, Ultima,' a Chicano coming-of-age novel, from a sophomore required reading list after a parent complains about some content. The ACLU might get involved. Seema Mehta in the Los Angeles Times -- 2/4/09

California farms, vineyards in peril from warming, U.S. energy secretary warns -- 'We're looking at a scenario where there's no more agriculture in California,' Steven Chu says. He sees education as a means to combat threat. Jim Tankersley in the Los Angeles Times -- 2/4/09

Bone-dry Bolinas - barometer for state? -- With California in a critical drought, every shower, load of laundry and glass of tap water counts. But only in Bolinas could those things cost you your water connection. Kelly Zito in the San Francisco Chronicle -- 2/4/09

Spiking of organic fertilizer under fire -- State senators on Tuesday grilled organic certifiers and state regulators about what appears to be widespread chemical spiking of fertilizers used on the state's organic farms. Jim Downing in the Sacramento Bee -- 2/4/09

Dark Days for Green Energy -- Wind and solar power have been growing at a blistering pace in recent years, and that growth seemed likely to accelerate under the green-minded Obama administration. But because of the credit crisis and the broader economic downturn, the opposite is happening: installation of wind and solar power is plummeting. KATE GALBRAITH in the New York Times -- 2/4/09

Palo Alto residents worry about bullet train -- Until recently, the notion of a bullet train from Los Angeles to San Francisco seemed far off to Tom D'Arezzo, a high-tech product manager who lives in Palo Alto's Southgate neighborhood. He knew it was on the November statewide ballot, but wasn't sure of the specifics. Will Oremus in the San Jose Mercury -- 2/4/09

Debate over solar panel initiative welcome, L.A. mayor says -- A proposal to generate 400 megawatts of power by 2014 through the installation of solar panels on the rooftops of Los Angeles buildings was placed on the March ballot to encourage public debate, Mayor Antonio Villaraigosa said Tuesday. The item is in the Los Angeles Daily News -- 2/4/09

Report urges preserving Bay Area outdoors -- The areas are included in the first comprehensive list of woodlands, trails, orchards, watersheds and parks that more than 100 land-use experts decided should be part of a regionwide green corridor with space for wildlife, human recreation and agriculture. Peter Fimrite in the San Francisco Chronicle -- 2/4/09

Catalina Island fox population makes dramatic comeback -- The small animals may come off the endangered species list next year, thanks to an eight-fold population increase in just a decade. Louis Sahagun in the Los Angeles Times -- 2/4/09

Lazarus: Health savings accounts are ill-advised -- Former Senate Majority Leader Tom Daschle's decision Tuesday to withdraw as nominee for secretary of Health and Human Services was a setback for President Obama's goal of reforming the U.S. healthcare system. What could that mean for you? Three words: health savings account. David Lazarus in the Los Angeles Times -- 2/4/09

Despite Vow, Target of Immigrant Raids Shifted -- The raids on homes around the country were billed as carefully planned hunts for dangerous immigrant fugitives, and given catchy names like Operation Return to Sender. NINA BERNSTEIN in the New York Times -- 2/4/09

Santa Clara County sheriffs boost arrest efforts as property crimes rise -- It goes without saying that a weak economy and massive layoffs will eventually lead to a rise in crime. Unfortunately for local residents, even relatively safe and affluent cities such as Saratoga will likely be affected. Brian Babcock in the San Jose Mercury -- 2/4/09

Octuplets' mother filed at least two workers' compensation claims -- Nadya Suleman reported an injury in 1999 while working as a psychiatric technician at a state hospital, and again in 2001 after a car accident occurred while she was en route to medical treatment. Kimi Yoshino in the Los Angeles Times -- 2/4/09

Orange County D.A. takes stand in own defense -- Orange County District Attorney Tony Rackauckas took the stand in his own defense Tuesday, denying any knowledge that a businessman associated with his now-defunct foundation had wagered with ex-sheriff Mike Carona to sell badges. RACHANEE SRISAVASDI in the Orange County Register -- 2/4/09

Santa Ana anti-gang commission in jeopardy amid deficit -- The 17- member panel formed two years ago to keep young people out of gangs might be cut along with five other commissions to save the city about $425,000 a year. Tony Barboza in the Los Angeles Times -- 2/4/09

L.A. County reviewing health department workers' criminal records -- Supervisor Mike Antonovich says the assessment may determine whether some employees should be disqualified from their jobs because of their convictions. Garrett Therolf in the Los Angeles Times -- 2/4/09

  •  Bikes racing into downtown Long Beach in April -- An estimated 600 to 800 professional and amateur cyclists will race through the heart of downtown this spring in the first Long Beach Grand Prix Bicycle Festival and Bicycle Race, festival organizers announced today. Karen Robes Meeks in the Long Beach Press -- 2/4/09