Capitol Alert

Not that John Garamendi's announcement today that he is running for governor is much of a surprise, but it does officially clear the path for a contested race without an incumbent to replace him.

On the Democratic side, the only candidate with an open campaign committee for the office is Sen. Dean Florez, D-Shafter, who has assumed that Garamendi would seek the governorship.

Florez, an ambitious politician himself, has already started fundraising in earnest and is likely to leverage his chairmanship of the influential Governmental Organization Committee (which regulates booze, gambling and tobacco, among other things) to pad his campaign chest.

On the Republican side, the real question is who isn't running.

That's because those with open accounts on the GOP side include Sens. Sam Aanestad, Jim Battin, Jeff Denham and Tom McClintock, as well as former Assemblyman Tim Leslie, Assemblyman George Plescia and Rep. Kevin McCarthy.

Several of those candidates are unlikely to run. McClintock, for instance, is currently running for Congress and also has a 2010 account for the Board of Equalization. Should he win his congressional race, he has said he is not running for lieutenant governor. And should he lose, he would seem far more likely to run directly for governor, not lite guv.

McCarthy, a freshman congressman, is also unlikely to run.

As for the rest, Denham's political profile across the GOP grassroots was greatly boosted by the recent failed recall orchestrated by Senate leader Don Perata, D-Oakland. The recall fight also demonstrated Denham's fundraising skills and expanded his base of donors statewide.

Battin, Aanestad and Leslie all have long connections to GOP politics in the state, as three of the more experience Republican lawmakers (though Leslie termed out in 2006). And Plescia was briefly the Assembly Republican leader -- though his colleagues ousted him after less than a year on the job.

Lt. Gov. John Garamendi, who announced today that he is running for governor in 2010, has been around California politics for more than three decades.

Here's a quick version of his political CV:

1974: Elected to state Assembly
1976: Elected to state Senate
1980: Reelected to state Senate
1982: Lost bid for governor to Democrat Tom Bradley
1984: Reelected to state Senate
1986: Lost bid for state controller to Democrat Gray Davis
1988: Reelected to state Senate
1990: Elected first insurance commissioner
1994: Lost bid for governor to Democrat Kathleen Brown
1995: Joins Clinton administration as deputy secretary for Department of the Interior
2002: Elected to second-term as insurance commissioner
2003: During the recall, announced he was running for governor, then withdrew days later
2006: Elected lieutenant governor
2008: Announces candidacy for governor in 2010

John Garamendi, left, is sworn-in as insurance commissioner by former Judge and interim commissioner Harry Low, right, during ceremonies at the Capitol in Sacamento, Calif., Monday, Jan. 6, 2003.(AP Photo/ Rich Pedroncelli)

The Bee's Bill Lindelof has more details. We'll update as it happens.

Even though the Governor's Office failed to send a card for National Columnist's Day (look it up), Bee Staff Writer Carlos Alcalá put together a Hallmarkian verse for Gov. Arnold Schwarzenegger's 61st birthday today. We invited readers to chime in. Here are two of the better (and somewhat bitter) contributions, preceded by Alcalá's original.

Happy budget, er, birthday
To you, lieber Guv.
Except for state workers,
We all send our love.
You hit 61.
We all wish you the best,
Except for the kids
Who face algebra tests,
And except for the Dems
Who want your recall.
Yes, except for a few,
Happy Birthday from all.
-- Carlos Alcalá

All wrinkles look good in Armani suits
And gray hair is fine when you've got lots of loot.
Don't worry or fret 'bout your upcoming aging.
(You should worry more about the war that you're waging.)
As you blow out your candles and sip your champagne.
Try to remember some of your campaign.
And while I didn't vote for you, some people did,
In hope that you'd make California better for kids.
Enough of this politics, just be glad you're alive,
While the rest of us live on $6.55.
-- Tom Hopper

Oh Guffanur, I hope you haff a vunderbar birssday,
But bevore you age anozer day, I haff somezing to say:

Oh Guffanur, ya Guffanur, you promised us so much,
Yet how coult all za voters know you ver so out uff touch?
You haff no grasp uff common volks zet slave in your régime.
Instead you sign za documents zet vipes our pockets clean!

Ve vould implore you, Guffanur, to step vonce in our place,
Und mitt only pennies buy za food to stuff in your kinders' face.
Wat vould your vife say to you if you stumbled home vun day,
Und told her, "Shatzie, pawn your jewels; it iss ze only vay."

Just step once in ze shoes, Mein Herr, of common serfs like us,
Und imagine your Hummer repossessed and you riding ze bus!
Und all ze special interest groups whom you svore to ignore
Haff told you now to hit ze road; you haff no worth no more.

Und Guffaanur, just one last zing, ven your pen handt starts to tvitch,
Remember ven da Karma comes, she sure can be a b**ch!
-- Scherry Clarke

-----

State Treasurer Bill Lockyer this morning criticized Gov. Arnold Schwarzenegger as disengaged in the budget process, saying the "governor would rather have press conferences than do the tough, nitty-gritty negotiations."

In a meeting with The Bee Capitol Bureau, Lockyer, a Democrat, contrasted Schwarzenegger's leadership with that of former Gov. Pete Wilson.

"When I was doing it with Pete Wilson, he would have us in his office 10-12 hours a day, every day, or almost every day," said Lockyer, who tangled with Wilson as state Senate leader in the mid-1990s.

"The governor just has to be engaged in the process," said Lockyer, before adding that Schwarzenegger "can't do it casually."

The state budget is nearly one month late as California faces a $15.2 billion deficit. There have been no votes on a spending plan in either house of the Legislature.

Lockyer, who negotiates the state's bonds with Wall Street, said he was tired of seeing the state balance the budget through borrowing.

"There's a structural deficit in California that has to be addressed and this governor's done nothing to do that," said Lockyer, who called the governor's lottery proposal "the current iteration of a borrowing scheme."

As for his own political future - he is one on the long list of potential Democratic candidates for governor in 2010 - Lockyer, a former Senate president pro tem and state attorney general, demurred.

Noting that he is the only would-be candidate sitting on a hefty campaign account (roughly $10 million), Lockyer said, "I'm watching."

If he had to decided today, he'd run for reelection. "Turns out being treasurer is a lot of fun," he said.

He did make one thing clear: If Democratic Sen. Dianne Feinstein were to enter the race, he believes the race would be over.

"She beats everybody," Lockyer said.

Some other highlights:
• As far as the state's cash flow crunch, Lockyer gave no specifics, saying that the state could borrow funds (through what's known as a "revenue anticipation warrant") should the budget standoff drag on through August, though passing a budget would allow California to float "substantially cheaper" loans, called "revenue anticipation notes."

• Lockyer said the state's "messy summers" negotiating a chronically late budget have a negative impact on California's credit rating from Wall Street.

It is "part of the optics around the budget process that annoy them," Lockyer said.

• On the fall ballot, he said he is opposed to Proposition 8, the gay marriage measure.

While he is "in favor of the concept" of Proposition 11, the redistricting initiative, he did not take a stand on the measure.

• Lockyer is pushing for his own $2 billion bond measure to "green" state buildings. The measure, SB 1670 by Sen. Christine Kehoe, is in the Assembly Appropriations Committee.

Lockyer said he wasn't sure if he would push to place the bond on the 2008 ballot or simply settle for a future ballot.

House Speaker Nancy Pelosi, a San Francisco Democrat, is embarking on a national tour promoting her new book, "Know Your Power: A Message to America's Daughters."

But today's headlines in the Los Angeles Times and Washington Post can't be helping.

"Pelosi hopes her new book is more popular than Congress" reads the Times.

"Nancy Pelosi Airs Some Clean Laundry in 'Power'" says the Post.

The Post features a Q&A with Pelosi about everything from laundry to the "secret sauce club" in Congress.

Here's my favorite question:

Post: Not long after you first met Paul Pelosi, but before you started dating or even became friends, he casually asked you if you'd mind picking up his shirts when you went to the cleaners. How did you ever let him live that down?

Then later, after we were married, he asked me if I would iron a shirt and that didn't happen, either. . . . I always said, "You know, people make a living doing this and we should support that part of our economy."

Photo credit: Richard Drew, AP. Nancy Pelosi touting her new book on the Today show on July 28, 2008

Here's something a bit different: state Sen. George Runner travelled to Nevada this month to criticize his home state of California.

Runner, a Lancaster Republican, spoke to officials at the Nevada Development Authority.

That is the same out-of-state group that has targeted California business, urging them to move to Nevada to escape the "California Tax Bear."

The Las Vegas Business Press has the story:

As Nevada officials debate answering declining revenues with budget cuts or tax increases, Republican California state Sen. George Runner said higher taxes have hindered California's economy, driving some of the state's best businesses to competitors, including Nevada.

"What you have continued to focus on and preserve in Nevada is something we in California have lost," said Runner, a fiscal conservative and chair of the California Senate's Republican Caucus. "I don't blame you for what you're doing, stealing our business. I'd like to figure out how to get them back. Unfortunately, it's not just up to me. A lot of dynamics we face are making it very difficult."

Gov. Arnold Schwarzenegger turns 61 on Wednesday, and Bee columnist Carlos Alcalá has penned a poem to mark the event. Feel free to submit your poetic birthday wishes to Carlos, and we'll publish the best ones.

Here's Carlos' take...

Happy budget, er, birthday
To you, lieber Guv.
Except for state workers,
We all send our love.
You hit 61
We all wish you the best
Except for the kids
Who face algebra tests.
And except for the Dems,
Who want your recall
Yes, except for a few,
Happy Birthday from all.

Steve Ybarra got his $20 million after all.

The Democratic superdelegate from Sacramento made national headlines when he put his vote up for sale in the Democratic primary back in May.

That's when Ybarra announced that either Sens. Hillary Clinton or Barack Obama could have his support - for a cool $20 million.

The catch: Every penny was to go to voter outreach for Mexican-Americans.

Neither candidate took the bait. So Ybarra, a member of the Democratic National Committee, was headed to the Denver convention next month an uncommitted man.

"I was ready to abstain," Ybarra said. "Absolutely."

Fast forward to Tuesday, when the Obama campaign and the Democratic National Committee announced a plan to spend, you guessed it, exactly $20 million on Latino voter outreach.

"Wow!" said Ybarra when told by Capitol Alert. "That's amazing."

Ironic, too. His money-for-vote offer cost him his seat on the DNC in a state party executive committee vote last month, he said.

"The folks in D.C. were very upset," said Ybarra, who will keep his post through the national convention.

Not that Ybarra seems to mind. "I get to go (to Denver) and say 'Na, na, nana, na,'" Ybarra beamed.

The Obama campaign rolled out the Latino outreach plan, promising big efforts in swing states such as Colorado, New Mexico, Nevada and Florida - exactly the states Ybarra wanted targeted.

"Obviously, I am delighted that the senator and his people have figured out that the Latino vote is the vote that deicides the election," Ybarra said.

"It's nice to be shown that, guess what, I was right," he added.

Even if it cost him his committee seat.

Hat tip: Calitics

The California State Auditor has released a report on the costs of building a new "condemned inmate complex" at San Quentin prison, saying while the project has been plagued by cost overruns, it is still the "least costly" of the alternatives.

Read the full report, the executive summary or a helpful fact sheet.

The project was originally slated to cost $220 million, but the auditor reports:

As for other sites for an expanded death row, the auditor says:

It would have been less expensive to construct a CIC at each of the three alternative prison sites we identified if construction could begin at the same time as planned for San Quentin.

Because building a CIC at an alternate site would require various approvals and studies that would delay construction and cause increases in construction costs, transition and activation costs, and 20-year operating costs, the currently proposed CIC at San Quentin is the least costly alternative.

Photo Credit: Brian Baer, Sacramento Bee, May 2008, San Quentin Prison

Lt. Gov. John Garamendi has joined the parade of Democrats criticizing the governor's plan to temporarily slash state worker salaries to the federal minimum wage.

Here's Garamendi's letter to Gov. Arnold Schwarzenegger:

Dear Governor Schwarzenegger:

JOHN GARAMENDI
Lieutenant Governor

As California enters Day 29 of the fiscal year without a budget, Steve Wiegand looks back at the five latest budgets in California history.

They are all in the modern era with the earliest in 1992-93. Pete Wilson negotiated three of the five, with Gray Davis and Arnold Schwarzenegger each making the list once.

1. FISCAL YEAR: 2002-2003
Governor: Gray Davis
Date Signed: Sept. 5, 2002

5. FISCAL YEAR: 1997-1998
Governor: Pete Wilson
Date Signed: Aug. 18, 1997

The California Republican Party has released its final list of Republicans attending the national party convention in September.

Find the list here.

Senate leader Don Perata scratched plans for a Tuesday floor vote on the state budget today, saying negotiations were moving forward and the vote "would disrupt that progress."

Perata had called for a vote last week, citing the looming cash crunch facing the state.

"I know the state is facing a cash crunch, and I am doing everything possible to pass a budget that fixes the state's fiscal problems, which every year (gets) worse," Perata said in a statement.

He reiterated the Democrats' opposition to borrowing or other temporary solutions.

"It's painful - but it's time to stop shunting our responsibility off to 'next year,'" the Oakland Democrat said.

Democrats have proposed raising more than $9 billion in taxes to help balance the state's budget, which faces a $15.2 billion deficit. Republicans, however, have made clear that they would vote down the Democratic proposal.

While Democrats control 25 of the 40 seats in the state Senate, that is two shy of the two-thirds majority needed for passage of the annual spending plan.

Some have questioned whether the Senate leadership has the full support of its own caucus for the tax hikes, particularly the vote of moderate Sen. Lou Correa, D-Santa Ana.

"I would be very surprised if they were to get 25 votes," said Republican Sen. Jeff Denham, who was the target of a failed recall after helping block last year's budget.

Perata has requested senators remain within 24 hours of the Capitol. The full Senate is scheduled to return to Sacramento on August 4.

Here's Perata's brief statement, in full:

"Negotiations are continuing daily and we are making progress. It is clear that a floor vote on Tuesday would disrupt that progress. I know the state is facing a cash crunch, and I am doing everything possible to pass a budget that fixes the state's fiscal problems, which every year get worse. It's painful - but it's time to stop shunting our responsibility off to 'next year.'"

The Sacramento man who bought Rep. Laura Richardson's foreclosed home has dropped a lawsuit against her and her bank, after the bank sought to rescind the sale.

James York bought the home of the Long Beach Democratic congresswoman at a foreclosure sale for $388,000. Richardson had bought the home for $535,000 and owed the bank more than $578,000.

The Press-Telegram reported the details of the abandoned suit, including this quote from York:

"I'm not supposed to say anything," he said. "I think you guys can figure out what happened. I only make business decisions and nothing else."

Past tales in the Richardson chronicles:

Richardson's ride is costliest in House
Rep. Richardson didn't pay her car bills, either
More Laura Richardson news
Richardson foreclosure story grows

Photo credit: Brian Baer, Sacramento Bee, May 10, 2007

The influential ballot summary of the initiative to ban gay marriage in California has been rewritten, and opponents of Proposition 8 are calling the new version "good news."

The original ballot summary, written by the attorney general's office in 2007,
described the measure as amending the state constitution to "provide that only marriage between a man and a woman is valid or recognized in California."

But the new version, rewritten after the state Supreme Court's legalization of gay marriage in May, says the measure would "eliminate right of same-sex couples to marry."

Geoff Kors, executive director of Equality California, a gay-rights group, e-mailed supporters calling the change "good news."

"This summary accurately describes what the proposition will do," he wrote.

The new title and summary also says the measure would result in "potential revenue loss," likely from the cancellation of same-sex weddings. The original title-and-summary said the measure would have "no fiscal effect."

Here's the new title and summary:

ELIMINATES RIGHT OF SAME-SEX COUPLES TO MARRY.
INITIATIVE CONSTITUTIONAL AMENDMENT
Changes California Constitution to eliminate right of same-sex couples to marry. Provides that only a marriage between a man and a woman is valid or recognized in California.

Fiscal Impact: Over the next few years, potential revenue loss, mainly sales taxes, totaling in the several tens of millions of dollars, to state and local governments. In the long run, likely little fiscal impact to state and local governments.

Here's the old one:

LIMIT ON MARRIAGE. CONSTITUTIONAL AMENDMENT.
Amends the California Constitution to provide that only marriage between a man and a woman is valid or recognized in California.
Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: The measure would have no fiscal effect on state or local governments. This is because there would be no change to the manner in which marriages are currently recognized by the state

San Francisco Mayor Gavin Newsom -- a potential 2010 candidate for governor -- was married in Montana over the weekend to 34-year-old Jennifer Siebel. The wedding was attended by a who's who of San Francisco politicos and written up by none other than Wilile Brown.

The former mayor and speaker of the Assembly has a new column every Sunday in the San Francisco Chronicle. This time, he wrote his dispatch from the wedding.

"What a party. What a wedding. What a spread," is how Brown begins:

The actual service took place on a field, far out on the ranch and way out of cell phone reach.

And then Jennifer came out and did the same.

The Chronicle's Leah Garchik has also a write-up of the Montana marriage ceremony, including this gem:

"By their bedsides, guests had received written instructions telling them not to talk to the press."

Delecia Holt reported raising more than $200,00 to run for Congress. But none of her reported donors reached by the Orange County Register said they donated to the Aliso Viejo Republican.

And that's only the beginning.

The Register's Martin Wisckol reported Friday the bizarre tale of Holt's mysterious campaign, her run-in with nonprofits and the $32,000 she owes in unpaid road tolls and fines:

The Register wrote each of the 217 donors at the addresses listed on Holt's federal financial filings, inquiring about their donations. Not a single one responded that they had supported the would-be candidate.

Most of those listed as donors no longer lived at the addresses listed -- 165 of the 217 letters were returned as undeliverable. Records show that at least 96 lost their homes to foreclosure.

Holt wouldn't answer the paper's questions, except via e-mail, and answered few of the Register's questions directly.

Wisckol reported Holt's run-ins with local and national charities:

Rancho Santa Margarita businessman Mike Curtis said he's contacted both the Sheriff's Department and the District Attorney's Office to talk about a fundraiser Holt held on Oct. 6 at the Marriott Laguna Cliffs. The event was billed as a fundraiser for "Habitat for Humanity/Homes for Heroes," although Habitat for Humanity's Joan Ziegler said her group heard of the event only after the fact and received no proceeds.

The veterans group's lawyers have written Holt a cease-and-desist letter, and demanded to be given all the money received by Holt.

Then there are her unpaid debts.

As for her toll roads debt, she racked up $23,700 in fines as the result of 427 incidents of not paying the toll in 2001 and 2002, according to the judgment filed in Orange County Superior Court. She has yet to pay it, and interest has brought the amount to $32,300.

Court records show she's been a defendant in at least 11 other court cases. Between lawsuits, an eviction, two tax liens -- since paid off -- and the toll road fine, she's been accused in public records of not paying her bills at least nine times.

Really, the whole story is more than worth a read.

Or check out Holt's own campaign site, where she is selling "Youth Juice" and writes:

Because together, the possibilities are limitless!
Your family; is my family!

Despite no signs of agreement, a deal, closeness to a deal or compromise by anyone, Gov. Arnold Schwarzenegger continues to say the state's close to solving its stalled budget negotiations.

He skipped a conference in Minnesota on infrastructure to stay in California for budget talks and told the out-of-state audience, "I think we have a good shot of getting the budget done this weekend, so I didn't want to leave the state."

Jon Ortiz, who writes for The Bee's new State Worker blog, has more from state Controller John Chiang on why he plans to buck Gov. Arnold Schwarzenegger's executive order:

"I don't want to subject the state of California to legal liability," Chiang said. "Under the Fair Labor Standards Act, if we do not pay full wage, we may be subject to treble damages that would only exacerbate an already difficult financial situation."

Also, quite simply, the computer system might not be up to snuff.

"All of these government agencies would have to be involved more extensively in payroll calculations, and it could easily create errors subjecting us to legal liability under federal law," Chiang said.

Steve Geissinger, who was laid off last month as a reporter for the Bay Area News Group, East Bay, has landed a new gig as the television reporter for the Capitol Television News Service.

The Capitol Television News Services produces video from the Capitol and distributes it to TV stations across the state. Every day, Capitol Alert publishes the preliminary rundowns for which stations the news service will cover, as well as at least one video.

Find all that on the Capitol Alert CTNS page.

Current CTNS reporter Rob Griffith was promoted to CTNS Bureau Chief.

E.J. Schultz at the Fresno Bee reports on the ongoing debate between Republicans over what to make of Gov. Arnold Schwarzenegger's latest $9.3 billion water bond proposal.

On the one side is Senate Republican leader Dave Cogdill, who is pushing for a bond.

On the other side are conservative Republicans upset about increased borrowing. (Teasing to Schultz's story, FlashReport's Jon Fleischman says the measure is "filled with 'enviro-pork.' ")

Schultz reports on the conundrum that faces Central Valley reps Mike Villines and Cogdill, who answer both to the conservative wing of the party and their agricultural constituents:

Money for dams is a top priority for the farmers who live in their districts. Yet, to strike a deal with Democrats, they will likely have to agree to a "comprehensive fix" that includes money for environmental restoration, water recycling and the like.

That will increase the bond price tag. And, as evidenced by the debate above, will anger fiscal conservatives in other parts of the state.

An indignant Don Perata made fun of Gov. Arnold Schwarzenegger for his brigade of "13 armed escorts" today.

The Senate president pro tem was mocking Schwarzenegger as out of touch with the average Californian at a rally protesting the plan to temporarily slash the pay of state workers to $6.55 an hour.

Visibly fired up, the Oakland Democrat declared he had only one question for Schwarzenegger now that the governor had revealed his plan to conserve cash during the budget crunch by cutting workers' pay.

"Who in the hell do you think does the work around here?" he shouted to the applauding workers.

"If it weren't for public servants," Perata egged on the crowd, "we would not have a civilized society."

Perata went on to lambaste Schwarzenegger for hosting a ballot measure fundraiser in Carmel tonight. "I don't think anybody here is going to be in Carmel tonight for any reason," he said.

He followed his outsized rhetoric with a threatening message about the impact of the budget negotiations. Perata ominously told the crowd that "you will not be realizing the wages and compensation you deserve" if the budget doesn't include the hike taxes Democrats have proposed.

Then, he called his experience negotiating with other members of the Big Four "a lot like high school."

After the rally, he called the governor's move "unnecessary" and "incendiary."

"You know, he is really trying to incite the wrong people. But if he wants a fight, he's going to have a fight. ... This is an act of war. It's a declaration. He is doing war on the people of this state who make California run. So whoever advised him ought to be in an unemployment line right now. If he thought of it himself, shame on him."

Perata, who was carjacked at gunpoint late in 2007, said the governor doesn't have to face the realities of everyday life in the state:

"I can guarantee you he will never get carjacked."

Photo credit: Brian Baer, Sacramento Bee, July 24, 2008

The Bee's Kevin Yamamura contributed to this report

"The depth of the deficit is exceeded only by the width of the chasm separating Democrats and Republicans who must sooner or later agree on a spending plan."

That is how Assemblywoman Patty Berg, D-Eureka, describes California's current fiscal predicament in an op-ed in today's Capitol Weekly.

Berg makes an impassioned argument for the benefits of government spending.

"Some of my Republican friends might convince you that our differences focus on a willingness to spend. They have done a great job of painting Democrats as the 'tax-and-spenders.' But that's not what separates us," she writes.

"Republicans are only too happy to spend on programs they like. Several of them came to me and asked that my budget subcommittee protect one pet program or another. The real point of contention is what we think government can and should do," continues Berg, who chairs the subcommittee on health and human services.

From roads to police, she ticks off the ways that government impacts everyone.

"Sacrificing all those benefits to avoid restoring the very tax rates that were in place when the economy was blazing hot, makes no sense at all," she concludes. "In fact, once we reach across the ideological divide and agree on a spending plan, we can remind everyone that California is headed not toward a future of decline and decay, but a future of wise investment and robust opportunity."

But, as she began her piece, that's a world view diametrically opposed by the Legislature's Republicans. And a gap unlikely to be bridged this summer.

On Wednesday, Captiol Alert published the list of endorsements for the California Labor Federation, which backed Democrats -- and only Democrats -- across the state.

But one incumbent congresswoman was left off the list.

The San Diego Union Tribune noticed that area congresswoman Susan Davis was missing. The paper reports:

Bryan Blum, political director of the statewide labor group, said it followed the recommendation of the San Diego-Imperial Counties Labor Council that it withhold an endorsement from the four-term San Diego Democrat because of an inconsistent voting record on trade issues.

"It does go back to her voting the wrong way on some trade issues," Blum said. "The folks in San Diego had some issues because they felt she made a commitment to vote one way and she voted the other."

Responding to Gov. Arnold Schwarzenegger idea to cut pay for state workers, the largest union of state employees has planned a rally outside the Capitol at noon today to protest.

"We're outraged at the governor's plan to slash the wages of state workers as a stopgap measure while he and the Legislature fail to do their job and pass a responsible budget," SEIU Local 1000 President Yvonne Walker in a prepared statement. "I'm asking every state employee to join me in calling the governor and telling him we won't be pawns in his game. Tell the governor, 'I'm worth more than minimum wage.'"

SEIU 1000 represents about 95,000 state workers.

Here are reactions to Gov. Arnold Schwarzenegger's plan to reduce state workers' pay to the federal minimum wage until a budget is passed.

State Controller John Chiang:

"Forcing public servants to involuntarily loan the state cash by foregoing their hard-earned paychecks puts an untenable burden on our teachers, health care workers and those who provide critical public services. That is just wrong.

"Requiring a cut in pay for public employees - especially as they, like many other Californians, struggle with their mortgages and higher gas and food prices - will not only cause significant harm to those families, but also irreparably impact our economy by further eroding consumer spending.

"I have made it crystal clear that we have, and will continue to have, sufficient cash to make all payments, including state payroll, through September. Cutting workers' salaries will do nothing meaningful to improve our cash position or help us make our priority payments.

"This is a cynical attempt by a governor who has spent the past few weeks going up and down the state criticizing others for political posturing. Such an executive order is unnecessary and nothing more than a poorly-devised strategy to put pressure on the Legislature to enact a budget.

"As the Supreme Court has never addressed the legality of withholding full salaries versus paying minimum wage, the governor's proposed executive order would only invite more extensive and expensive litigation. Worse, should the courts find that withholding full pay is illegal, the state will be liable for treble damages.

"I will urge the governor to rethink his proposal and work with us to ensure we manage our state finances in a responsible, realistic and honest manner."

Senate Republican leader Dave Cogdill of Modesto and Assembly Republican leader Mike Villines of Fresno:

"Republicans understand the urgency of getting the budget done as soon as possible, which is our main focus right now. We are working very hard to avoid drastic measures like the one that is being proposed. Republicans are committed to crafting a responsible budget plan that reforms our broken system while protecting taxpayers."

Speaker Karen Bass, D-Los Angeles:

"I don't believe the governor would put public servants in the crossfire of this budget battle. But this action would speak to the need for all us -- including the governor -- to negotiate a balanced, responsible budget that protects our schools and the safety net before we run out of cash."

Sen. Dean Florez, D-Shafter:

"I don't think it is wise for the governor to use working men and women as hostages for the state budget. I think it shows weakness on his part as a negotiator. The men and women who do the hard work that keeps our state running deserve their full pay."

Julia Rosen at Calitics.com:

"This is going to result in a lot of employees needing governmental assistance for basic needs, not that the state has the money to help with that anyways at this point. This is a crisis and this damn well better get some folks up in arms."

Jon Fleischman at FlashReport.org:

"This is huge. Perhaps it is the 'lemonade' of the lemon that is our state budget crisis. We always see the size of state government grow larger and larger. Seldom do we see actual reductions. Unfortunately, when the budget is approved, it is likely that most if not all of those terminated will be rehired -- but perhaps there will be areas of state government where it may be realized that, 'Hey, we're getting along just fine without the expense of that additional position.'

"Then again, probably not. But one can hope..."

Chris Reed, San Diego Union-Tribune editorial board member and author of America's Finest Blog:

"Schwarzenegger is lucky. Chiang is saving him from himself. Arnold made a monumental misjudgment here in his choice of tactics to ratchet up the pressure to cut a budget deal. Last year, the budget standoff went on into late August without similar theatrics. The public would have seen this as a stunt, akin to the Republicans in Congress shutting down the federal government in November 1995. And far from feeling sympathy for state workers, millions of voters would have seen the temporary pay reduction and the inconvenience it caused as something these workers had coming -- especially the elected officials and the Sacramento bureaucrats."

Art Torres, chairman of the California Democratic Party

"Less than a month ago, Governor Schwarzenegger held up his bulging money clip before the media and 'joked' that the state still has plenty of money left.

"Now, the Governor wants many of our state's hardest working public servants to give up their paychecks because the Republicans refuse to pass a balanced budget that protects schools and health care.

"This is no laughing matter.

"I commend Controller John Chiang for standing up to Governor Schwarzenegger on behalf of California's state employees.

"The Governor's actions reaffirm the urgent need for the Governor and the Legislature to come to the table and negotiate a balanced budget in a responsible manner."

Gov. Arnold Schwarzenegger plans to sign an executive order next week that will temporarily reduce pay for more than 200,000 state workers to the federal minimum wage of $6.55 per hour to preserve cash in the midst of a month-long budget standoff.

The Bee's Kevin Yamamura has the story.

The California Labor Federation has rolled out its endorsements for the November ballot. There were few surprises, with no Republicans among its endorsees.

Propositions:
1 YES
2 No Recommendation
3 No Recommendation
4 NO
5 YES
6 NO
7 NO
8 NO
9 NO
10 NO
11 NO
12 YES

Assembly Districts

1 Wesley Chesbro (D)
2 Paul Singh (D)
3 Mickey Harrington (D)
4 No Endorsement
5 Dan Leahy (D)
6 Jared Huffman (D)
7 Noreen Evans (D)
8 Mariko Yamada (D)
9 Dave Jones (D)
10 Alyson Huber (D)
11 Tom Torlakson (D)
12 Fiona Ma (D)
13 Tom Ammiano (D)
14 Nancy Skinner (D)
15 Joan Buchanan (D)
16 Sandre Swanson (D)
17 Cathleen Galgiani (D)
18 Mary Hayashi (D)
19 Jerry Hill (D)
20 Alberto Torrico (D)
21 Ira Ruskin (D)
22 Paul Fong (D)
23 Joe Coto (D)
24 Jim Beall (D)
25 Taylor White (D)
26 John Eisenhut (D)
27 Bill Monning (D)
28 Anna Caballero (D)
29 Humberto Avila (D)
30 Fran Florez (D)
31 Juan Arambula (D)
32 No Endorsement
33 Robert Cuthbert (D)
34 Desmond Farrelly (D)
35 Pedro Nava (D)
36 Linda Jones (D)
37 Ferial Masry (D)
38 Carole Lutness (D)
39 Felipe Fuentes (D)
40 Bob Blumenfield (D)
41 Julia Brownley (D)
42 Michael Feuer (D)
43 Paul Krekorian (D)
44 Anthony Portantino (D)
45 Kevin DeLeon (D)
46 John A. Perez (D)
47 Karen Bass (D)
48 Mike Davis (D)
49 Mike Eng (D)
50 Hector De La Torre (D)
51 Curren Price (D)
52 Isadore Hall (D)
53 Ted Lieu (D)
54 Bonnie Lowenthal (D)
55 Warren Furutani (D)
56 Tony Mendoza (D)
57 Ed Hernandez (D)
58 Charles Calderon (D)
59 Don Williamson (D)
60 No Endorsement
61 Norma Torres (D)
62 Wilmer Amina Carter (D)
63 No Endorsement
64 No Endorsement
65 Carl Wood (D)
66 Grey Frandsen (D)
67 Steve Blount (D)
68 Kenneth Arnold (D)
69 Jose Solorio (D)
70 No Endorsement
71 No Endorsement
72 John MacMurray (D)
73 Judy Jones (D)
74 Brett Maxfield (D)
75 No Endorsement
76 Lori Saldana (D)
77 No Endorsement
78 Marty Block (D)
79 No Endorsement
80 Manuel Perez (D)

Senate Districts

1 Anselmo Chavez (D)
3 Mark Leno (D)
5 Lois Wolk (D)
7 Mark DeSaulnier (D)
9 Loni Hancock (D)
11 Joe Simitian (D)
13 Elaine Alquist (D)
15 No Endorsement
17 No Endorsement
19 Hannah Beth Jackson (D)
21 Carol Liu (D)
23 Fran Pavley (D)
25 Rod Wright (D)
27 Alan Lowenthal (D)
29 No Endorsement
31 No Endorsement
33 Gary Pritchard (D)
35 Ginny Mayer (D)
37 Arthur Bravo Guerrero (D)
39 Christine Kehoe (D)

Congressional Districts

1 Mike Thompson (D)
2 Jeff Morris (D)
3 Bill Durston (D)
4 Charlie Brown (D)
5 Doris Matsui (D)
6 Lynn Woolsey (D)
7 George Miller (D)
8 Nancy Pelosi (D)
9 Barbara Lee (D)
10 Ellen Tauscher (D)
11 Jerry McNerney (D)
12 Jackie Speier (D)
13 Pete Stark (D)
14 Anna Eshoo (D)
15 Mike Honda (D)
16 Zoe Lofgren (D)
17 Sam Farr (D)
18 Dennis Cardoza (D)
19 No Endorsement
20 Jim Costa (D)
21 Larry Johnson (D)
22 No Endorsement
23 Lois Capps (D)
24 Marta Ann Jorgenson (D)
25 Jackie Conaway (D)
26 Russ Warner (D)
27 Brad Sherman (D)
28 Howard Berman (D)
29 Adam Schiff (D)
30 Henry Waxman (D)
31 Xavier Becerra (D)
32 Hilda Solis (D)
33 Dianne Watson (D)
34 Lucille Roybal-Allard (D)
35 Maxine Waters (D)
36 Jane Harman (D)
37 Laura Richardson (D)
38 Grace Napolitano (D)
39 Linda Sanchez (D)
40 Christina Avalos (D)
41 No Endorsement
42 Ed Chau (D)
43 Joe Baca (D)
44 Bill Hedrick (D)
45 Julie Bornstein (D)
46 Debbie Cook (D)
47 Loretta Sanchez (D)
48 Steven Young (D)
49 Robert Hamilton (D)
50 Nick Leibham (D)
51 Bob Filner (D)
52 Mike Lumpkin (D)
53 No Endorsement

A federal lawsuit filed by national SEIU leaders against the president of one of the union's largest California affiliates has been dismissed without a hearing.

The suit, filed against Sal Rosselli, president of United Healthcare Workers West, and nine other local union leaders, had alleged that Rosselli and his allies had diverted members' dues to an outside fund out of the control of the union's national branch.

U.S. District Judge John F. Walter of the Central District of California, in a ruling Tuesday, dismissed all of the claims.

The lawsuit was just the latest chapter in the boiling feud between Rosselli, whose union is an estimated 140,000 workers strong, and Andy Stern, president of SEIU International.

Here is some background from the Capitol Alert story on the lawsuit back in April:

Rosselli has sparred for months with Andy Stern, president of SEIU International and one of the nation's top labor leaders.

The repeated confrontations between Stern and Rosselli have led to rumors that Stern would put Rosselli's union in "trusteeship," which would suspend the local leaders' access to members' dues.

After the court dismissed the suit this week -- which Rosselli had decried as part of a "PR circus" back in April -- UHW-West issued another sharply worded statement.

"The only purpose of this suit was to harass and discredit members of UHW who had spoken out against Andy Stern's and Anna Burger's backroom deals with corporations that hurt healthcare workers and our patients," said Rosie Byers, a union member targeted in the suit.

Read the judge's ruling here.

Senate President Pro Tem Don Perata said earlier this week that he intended to have a budget vote sometime next week.

That vote is now scheduled for Tuesday, Capitol Weekly reports.

That doesn't mean lawmakers are any closer to actually agreeing on a spending plan.

It may be a while (if ever) before Assembly Speaker Karen Bass graces the covers of national news magazines, as Gov. Arnold Schwarzenegger has, but the Los Angeles Democrat gets a bit of ink in next month's American Prospect.

A liberal national magazine, American Prospect names Bass as one of seven Democratic "women to watch" in a post-Hillary Clinton era. (The pink cover features a silhouette and the headline "Beyond Hillary.")

One other Californian makes the list: Hilda Solis, a Southern California congresswoman.

"They are women who will no doubt have a role in shaping the party in the coming decade: potential attorneys general, speakers of the House, governors, senators, and yes, presidents," reports the magazine.

The other five are Kansas Gov. Kathleen Sebelius, Maryland congressional candidate Donna Edwards, U.S. Sen. Amy Klobuchar of Minnesota, Illinois Attorney General Lisa Madigan and Ohio Secretary of State Jennifer Brunner.

See the chart here. Or the full issue of the magazine.

With soaring gas prices and her car crumbled in a crash, Assemblywoman Sally Lieber is opting to scoot around town on a two-wheeler.

The San Jose Mercury News has the details on the Mountain View Democrat's new ride in its Internal Affairs column:

The 47-year-old lawmaker -- who gained worldwide attention last year for proposing to ban the spanking of children -- often straps on a helmet and gets around in a scooter. And we're not talking about a gas-powered Vespa or a zippy, electric X-Treme.

She said she even takes the spankin' new scooter (actually it's 2 months old, but we're sure it still has that new-scooter smell) for laps around the Capitol at night.

As for her car, a state-issued silver Toyota Camry, it was damaged in a four-car accident last week while it was parked outside the Capitol.

One of the 30-something bills Gov. Arnold Schwarzenegger signed Tuesday expanded the list of successors to the governorship should tragedy strike the state.

Senate Bill 1530 by Sen. Dennis Hollingsworth increased to 10 the number of officeholders in line for the governorship. The old succession list was seven leaders long.

Here's the new, extended list:

Rounding out the last three in line, under SB 1530, are the superintendent of public instruction, the insurance commissioner and the chairman of the Board of Equalization.

Hollingsworth sought the change after learning that the current line of succession of elected leaders included only seven spots. Here's the list, with Hollingsworth's additions in italics.

1) Lieutenant governor.
2) President Pro Tem of the Senate
3) Speaker of the Assembly
4) Secretary of State
5) Attorney General
6) Treasurer
7) Controller
8) Superintendent of Public Instruction
9) Insurance Commissioner
10) Chair of the Board of Equalization

A November ballot measure to expand renewable energy produced in California faces a long, expensive fight, as two of the state's biggest utility companies have poured $22.5 million this week into beating the initiative.

"This is a declaration of war," said Jim Gonzalez, a former San Francisco supervisor and sponsor of the measure.

The recent donations -- $12.25 million from PG&E and $10.25 million from Southern California Edison -- come on top of the $1.2 million energy-providers have already contributed.

Gonzalez said he fully expects this is only the beginning of the utilities' donations: "This is the opening gambit."

The target of the funds is Proposition 7, which would require all California utilities to generate at least half of their power from alternative sources, such a solar or wind, by 2025. Utilities are currently required to provide 20 percent of energy from renewable by 2010.

In a statement, Southern California Edison said the measure "would upend the existing regulatory process, disrupt existing renewables development, significantly raise rates and threaten reliability."

Proposition 7 was placed on the ballot largely on the strength of donations from Peter Sperling, the son of John Sperling, an Arizona billionaire and founder of the University of Phoenix.

Sperling donated $3 million to gather signatures to qualify for the ballot. Gonzalez's firm has contributed another $100,000.

The fall ballot fight -- with deep-pocketed utilities on one side and a billionaire on the other -- could wind up as the most expensive of the season.

Gonzales would not reveal if Sperling had committed to future donations, saying the campaign intended to rely on an online network of contributors, though he added, "We will spend whatever it takes to win."

The measure has united a broad and curious coalition in opposition: Democrats with Republicans (both state parties), environmentalists (the Natural Resources Defense Council) with utility companies, big labor (American Federation of State, County and Municipal Employees) with big business (California Chamber of Commerce), and so on.

"It's kind of like I'm uniting every warring group in the state," Gonzalez told the San Francisco Chronicle earlier this month.

So far, all the money has come from the utility companies, whose largesse, Gonzales suggested, played a role in securing the endorsements of the state parties.

"The utility companies can run but they can't hide," he said. "They can't hide behind environmental groups and they can't hide behind political parties whose conventions they sponsor."

John White, an environmental lobbyist who directs the Center for Energy Efficiency and Renewable Technologies, said environmental groups and renewable energy advocates oppose the measure because it was poorly drafted.

Environmentalists, White said, are "afraid that the measure, while well intentioned, is so poorly drafted that it could undermine the goals."

Even with such a broad coalition, the opponents of Proposition 7 face an uphill fight against public opinion. The Field Poll reported this week that, when read a brief description, 63 percent of the voters surveyed said they would support Proposition 7.

"We don't feel we have to spend the tens of millions they have to do to stick with the status quo," said Gonzalez.

Taking what was one of his hardest lines in the budget to date, Gov. Arnold Schwarzenegger said unequivocally in an interview with the Associated Press that he wouldn't sign a budget without long-term budget reform.

"I will not sign a budget that doesn't have budget reform in it, because otherwise I could not keep the promise to the people of California. I told them in 2003 that we are going to become more fiscally responsible and that we are going to go and to start living within our means," Schwarzenegger told the AP.

"Now here we are in an economic slowdown, and again we don't have that rainy day fund set aside."

Legislative Analyst Elizabeth Hill today released her office's analyses of the 12 measures that have qualified for the Nov. 4 ballot, along with an overview of the impact proposed bond issues would have on the state's debt service burden.

The analyses are available here.

Republican Sen. John McCain will take his presidential bid to the symbolic heart of liberal America next Monday, making a stop in San Francisco's swank Fairmont Hotel for a fundraiser.

The ticket? Up to $100,000 per person.

The event is at least McCain's third fundraising pit stop in the city. Back on the last day in January - only days before the state's presidential primary, which he won resoundingly - McCain hosted a fundraiser at the Four Seasons hotel.

Tickets were $1,000 per person, with hosts asked to raise $10,000.

He returned in late March for evening event at San Francisco's Ritz-Carlton, where tickets went for $2,300 - the maximum allowable donation for an individual.

But with the nomination sealed, times - and prices - have changed.

Those who wish to be "chairs" of next Monday's fundraiser must vow to raise $100,000. That comes with access to a private reception and a photo with the Arizona senator, head table seating at dinner and membership on the "California Victory Advisory Team."

A co-chair must give or raise $43,100 to the McCain effort. That comes with access to the private reception with a photo, two tickets to the dinner with priority seating and membership on the "California Victory Executive Team."

That strange sum of $41,300 is an outgrowth of the nation's complex set of campaign finance rules.

The first $2,300 goes directly to the McCain campaign, the next $2,300 goes to his legal fund, the next $10,000 to the California Republican Party's federal account and the last $28,500 to the Republican National Committee.

Whew.

A vice-chair of the San Francisco fundraiser must give $25,000 (same perks as co-chair minus "priority seating" at dinner). And a deputy chair must give $15,000 (that's for one dinner ticket and no advisory team membership).

It costs $10,000 per couple to attend the reception and take one photo and is $2,300 for an individual.

Those under 35 get a price break - only $1,000 to attend.

In a Field Poll released last week, McCain trails the Democratic presidential candidate, Sen. Barack Obama, by 24 points in California.

Photo Credit: Brian Baer, Sacramento Bee, from May 2008 appearance in Union City, CA.

A coalition of transportation advocates will launch a radio campaign on Wednesday urging lawmakers and the governor not to raid funds earmarked for transportation to balance the state budget.

The campaign has scheduled a press conference for Wednesday morning on the east side of the Capitol. Among the listed attendees are:

• Jim Earp, Executive Director, California Alliance for Jobs
• Allan Zaremberg, President & CEO, California Chamber of Commerce
• Jim Madaffer, San Diego City Council Member and President, League of California Cities
• Mark Watts, Executive Director, Transportation California
• Josh Shaw, Executive Director, California Transit Association

The campaign says the ads will run in Los Angeles, the Bay Area, San Diego, Sacramento, Fresno, Modesto, Bakersfield, and Merced.

Last week, Capitol Alert reported that lawmakers were considering borrowing from voter-approved funds for transportation and local government.

Democratic leaders, however, said Friday the Legislature has "never entertained massive borrowing as a solution to this year's budget problem."

The state faces a $15.2 billion deficit and the state budget is 22 days overdue.

Dean Andal, the former Assembly and Board of Equalization member, is trying to knock off freshman Democratic Rep. Jerry McNerney. But today's news isn't going to help the GOP challenger.

First, the Democratic Congressional Campaign Committee, the national arm of the party dedicated to a majority in Congress, announced that it was buying up $2 million in TV ad time in California.

The $2 million buy will be split between the McNerney-Andal race and the campaign between Sen. Tom McClintock and Charlie Brown to replace Rep. John Doolittle.

Here's a complete list of the DCCC's ad buys.

Then, Politico.com, the Washington D.C. insider Web site, published a story saying that Andal is "turning out to be one of the party's weakest fundraisers" this election cycle.

"National Republicans wondering whether a prime opportunity to pick off a vulnerable Democratic freshman is slipping away," reports Politico.

Such is (negative) exposure is significant because as Andal tries to unseat an incumbent congressman, he'll likely need to pry open the wallets of D.C. interests. But if his campaign is tagged as a financial loser months in advance, that job becomes all the harder.

In fairness, Andal has a history of beating the financial odds, as Politico reports:

In 1991, during his first Assembly campaign, he was outspent 5-to-1 but still defeated his better-known Democratic rival. In his next election, then-California House Speaker Willie Brown poured money into defeating the first-term legislator, but Andal again prevailed despite the long odds.

He managed to raise $3.5 million in an unsuccessful primary bid for state controller in 2002 but acknowledges that was "not much in California," where a successful candidate needs to spend considerably more to gain statewide traction.

And, in a bit of trivia, Andal lost that 2002 GOP primary to none-other-than Tom McClintock, whose fate he shares as the DCCC buys up ad time against the two Republicans.

As San Francisco Mayor Gavin Newsom dips his toes into gubernatorial waters, he is reaching out to the liberal blogosphere to support his political fortunes.

This last weekend, the mayor was in Austin, Texas where liberal bloggers from across the country gathered for a "Netroots Nation" conference.

Officially, he was there to introduce Van Jones, an environmental activist. But he also was there to reach out to the blogosphere.

"I'm not a convert, I'm one who recognizes the power and extraordinary influence the netroots have," Newsom told the San Francisco Chronicle's Joe Garofoli.

In that interview, Newsom spoke in depth about both the potential -- and perils -- of blogs, video and the Internet:

"The feedback is great. And what I love about it, for me, is that we throw something out there, but the value-added is what we get back -- all the posting. They'll say, 'This guy is a nut. That's the worst idea I've ever heard. Doesn't he already know they're doing this in Nova Scotia?' I'm like, fine, I didn't know that -- let's research it. And so I learn about what they're doing in Nova Scotia. I couldn't get that dialogue, candidly, if I just show up on a TV show. That's a one-way communication."

"That's the wealth in this. This makes me a better politician, and not just a politician, it makes me a better policy person. It's not just a campaign tool. Now, if I run for governor, obviously, it will become a politics tool, as well."

Newsom said the constant presence of cameras and bloggers means politicians must always be on guard:

"I think that there's such a caution now, that you can't walk into rooms and necessarily be yourself. Because you have to be on guard. you really do. I'm a pretty loose guy when it comes to saying publicly what I say privately, but you have to be (guarded.) I think it's going to change politics dramatically."

Julia Rosen, a California-based blogger on Calitics.com, celebrated three years of the lefty site's existence and its growing role in state politics.

"Years ago I would have been excited just to shake a politician's hand," she wrote, following the conference. "This year Gavin Newsom is here trying to suck up to me. And Debra Bowen greets me with a hug. It is surreal, but wonderful. And it is indicative of how our movement has grown."

It might be wishful thinking, but Gov. Arnold Schwarzenegger said Monday in Stockton, "I think this is the week when we should do a budget."

(Some of us also think this is the week the Giants should move into first place and newspapers should give employees 20 percent raises.)

Three weeks into the fiscal year, Democrats and Republicans remain divided over whether to close a $15.2 billion shortfall through cuts, taxes or various forms of borrowing. The four legislative leaders are slated to meet this afternoon, and then Schwarzenegger will join them later for a "Big Five" session.

At the event in Stockton this morning, Schwarzenegger was asked whether he was serious last week when he told The Bee that he eventually wants to force legislators to stay in a room until they agree to a budget. The governor said he went even further months earlier when he said legislators should be locked in a room and not be allowed to even use the bathroom.

Note to legislative leaders: Lay off the Big Gulps this afternoon.

Gov. Arnold Schwarzenegger is slowly rolling out appointments to the state's bench today. Here's a list of who he has appointed (updated throughout the day):

The brief bios are courtesy of the Governor's Office:

Alameda County Superior Court
Yvonne Gonzalez Rogers, 43, of Piedmont, was a member and then foreperson with the Grand Jury for Alameda County from 2005 until 2007. From 1991 to 2003, she was an associate, partner and then special counsel for Cooley Godward LLP. Rogers earned a Juris Doctorate degree from the University of Texas, Austin School of Law and a Bachelor of Arts degree from Princeton University. She fills the vacancy created by the retirement of Judge Carlos G. Ynostroza. Rogers is a Democrat.

Stuart Hing, 51, of Pleasant Hill, has been a deputy district attorney with the Alameda County District Attorney's Office since 1985. He earned a Juris Doctorate degree from McGeorge School of Law and a Bachelor of Science degree from California State University, Sacramento. He fills the vacancy created by the retirement of Judge Julie Conger. Hing is a Republican.

Butte County Superior Court.
Clare Keithley, 45, of Chico, has served as a deputy district attorney with the Butte County District Attorney's Office since 2006 and also previously from 1995 to 2004. She was a deputy district attorney with the Sonoma County District Attorney's Office from 2004 to 2006. Prior to that, Keithley was a contract attorney with the Law Offices of Barry and Harris from 1994 to 1995. She earned a Juris Doctorate degree from the University of San Diego School of Law and a Bachelor of Arts degree from the University of California, Berkeley. She fills one of the new positions created by Senate Bill 56. Keithley is a Democrat.

Contra Costa County Superior Court
Trevor S. White, 58, of Orinda, has been a deputy district attorney with the Alameda County District Attorney's Office since 1983. He earned a Juris Doctorate degree from the University of California Hastings College of Law, a Masters degree from the University of California, Berkeley and a Bachelor of Arts degree from the University of California, Santa Barbara. He fills the vacancy created by the conversion of a court commissioner position on January 1, 2008. White is a Republican.

Madera County Superior Court
D. Lynn Jones, 39, of Madera, has been a deputy district attorney with the Madera County District Attorney's Office since 1996. She earned a Juris Doctorate degree from the University of San Diego School of Law and a Bachelor of Arts degree from San Diego State University. She fills one of the new positions created by Senate Bill 56. Jones is a Republican.

Fresno County Superior Court.
Glenda S. Allen-Hill, 49, of Fresno, has served as a superior court commissioner with the Fresno County Superior Court since 1990. She previously served as a deputy district attorney with the Fresno County District Attorney's Office from 1988 to 1990 and held the same position with the Madera County District Attorney's Office from 1987 to 1988. Allen-Hill was a judge advocate general officer with the U.S. Air Force from 1984 to 1987. She earned a Juris Doctorate degree from the University of Southern California Law School and a Bachelor of Arts degree from the University of California, San Diego. She fills the vacancy created by the retirement of Judge Gary S. Austin. Allen-Hill is registered decline-to-state.

Kimberly A. Gaab, 41, of Fresno, has been an assistant U.S. attorney with the U.S. Department of Justice in Fresno since 2004. She was lead attorney with the State of California Court of Appeal in Fresno from 1999 to 2004. Gaab was an associate with Sagaser, Franson, Jamison & Jones from 1994 to 1999 and Jory, Peterson & Sagaser from 1993 to 1994. She earned a Juris Doctorate degree from Boalt Hall School of Law at the University of California, Berkeley and a Master of Business Administration and a Bachelor of Science degree from the University of California, Berkeley. She fills one of the new positions created by Senate Bill 56. Gaab is a Republican.

Interim judgeships in the Los Angeles County Superior Court
James N. Bianco, 45, of Los Angeles, has served as a court commissioner with the Los Angeles County Superior Court since 2005. Also in 2005, he was of counsel for Overland Borenstein Scheper & Kim LLP. Previously, he was a sole practitioner from 1995 to 2005. He was a partner with Bahan & Bianco from 1994 to 1995 and served as a deputy city attorney with the Santa Monica City Attorney's Office from 1990 to 1994. From 1987 to 1990, Bianco was an associate with Weissburg and Aronson. He earned a Juris Doctorate degree from the University of Southern California Law School and a Bachelor of Arts degree from State University of New York, Stony Brook. He was elected in June 2008 to fill the vacancy created by the retirement of Judge Daniel S. Pratt. The Governor's appointment allows Bianco to immediately assume the position he was otherwise elected to begin in January 2009. Bianco is a Democrat.

Kathleen Blanchard, 39, of Los Angeles, has served as a deputy district attorney with the Los Angeles County District Attorney's Office since 1998. She previously worked as a deputy attorney general with the California Department of Justice from 1994 to 1997. Blanchard earned a Juris Doctorate degree from the University of California, Los Angeles School of Law and a Bachelor of Arts degree from Cornell University. She was elected in June 2008 to fill the vacancy created by the retirement of Judge Michael Luros. The Governor's appointment allows Blanchard to immediately assume the position she was otherwise elected to begin in January 2009. Blanchard is a Democrat.

Jared D. Moses, 46, of Los Angeles, has been a deputy district attorney with the Los Angeles County District Attorney since 1994. He was previously an associate with Hosie, Wes, McLaughlin & Sacks from 1993 to 1994. Moses earned a Juris Doctorate degree from the University of California, Davis School of Law and a Bachelor of Arts degree from New York University. He was elected in June 2008 to fill the vacancy created by the retirement of Judge Dzintra Janavs. The Governor's appointment allows Moses to immediately assume the position he was otherwise elected to begin in January 2009. Moses is a Democrat.

Patricia Nieto, 57, of Los Angeles, has been a court commissioner with the Los Angeles County Superior Court since 2007. She previously worked as a juvenile court delinquency referee for the Los Angeles County Superior Court from 2005 to 2007 and was a part-time hearing referee for the juvenile court of the Los Angeles County Superior Court from 2001 to 2004. From 1985 to 2004, Nieto was a sole practitioner and, from 1981 to 1985, she was an associate then partner with Nieto, Paz, Romero & Sanora. In addition, she was an associate and law clerk with Gomez, Paz, Rodriguez & Sanora from 1976 to 1981. She earned a Juris Doctorate degree from the University of Southern California Law School and a Bachelor of Arts degree from the University of Kansas. She was elected in June 2008 to fill the vacancy created by the retirement of Judge Alan Kalkin. The Governor's appointment allows Nieto to immediately assume the position she was otherwise elected to begin in January 2009. Nieto is a Democrat.

San Diego County Superior Court
Carlos O. Armour, 57, of San Diego, has worked for the San Diego County District Attorney's Office since 1977 and currently serves as chief deputy district attorney. Previously, he was a sole practitioner from 1976 to 1977. Armour earned a Juris Doctorate degree from the University of San Diego School of Law and a Bachelor of Arts degree from Muhlenberg College. He fills the vacancy created by the conversion of a court commissioner position on April 2, 2008. Armour is a Republican.

Blaine K. Bowman, 44, of San Diego, has served as a deputy district attorney with the San Diego County District Attorney's Office since 1990. In 1990, he was a civil litigation attorney with Lindley, Lazar and Scales. Bowman earned a Juris Doctorate degree from the University of San Diego School of Law and a Bachelor of Arts degree from University of San Diego. He was elected in June 2008 to fill the vacancy created by the retirement of Judge Edward Huntington. The Governor's appointment allows Bowman to immediately assume the position he was otherwise elected to begin in January 2009. Bowman is a Republican.

Ana L. Espana, 52, of Bonita, has served as a deputy public defender with the San Diego County Public Defender's Office since 1988. She worked as an attorney for Jeffery Reilly from 1985 to 1988 and for Defenders, Incorporated from 1983 to 1985. Espana earned a Juris Doctorate degree from the University of San Diego School of Law and a Bachelor of Arts degree from University of San Diego. She fills the vacancy created by the retirement of Judge Janet Kintner. Espana is a Democrat.

Robert J. Kearney, 42, of San Marcos, has served as a deputy district attorney with the San Diego County District Attorney's Office since 1993. He served as a deputy attorney general with the California Office of the Attorney General in San Diego in 1996. Prior to that, Kearney was a deputy district attorney with the Mariposa County District Attorney's Office from 1992 to 1993. He was an attorney with the Law Offices of Donald Starchman from 1992 to 1993. Kearney earned a Juris Doctorate degree from McGeorge School of Law and a Bachelor of Science degree from the University of the Pacific. He fills the vacancy created by the retirement of Judge Lillian Lim. Kearney is a Republican.

Robert C. Longstreth, 51, of San Diego, has worked as an associate, partner and of counsel at various times with DLA Piper since 1989. Longstreth was an associate with the Office of Independent Counsel from 1988 to 1989 and held the same position with Wilmer, Cutler and Pickering from 1987 to 1988. From 1983 to 1987, he was a trial attorney with the U.S. Department of Justice. Longstreth earned a Juris Doctorate degree from Yale Law School and a Bachelor of Arts degree from Haverford College. He fills the vacancy created by the retirement of Judge Marguerite Wagner. Longstreth is a Democrat.

Dwayne K. Moring, 45, of Chula Vista, has served as a deputy district attorney with the San Diego County District Attorney's Office since 2004. He previously served as a deputy alternate public defender for the San Diego County Alternate Public Defender's Office from 1994 to 2004 and was a law clerk, then deputy city attorney for the San Diego City Attorney's Office from 1991 to 1994. Moring earned a Juris Doctorate degree from Pepperdine University School of Law and a Bachelor of Arts degree from Pepperdine University. He fills the vacancy created by the retirement of Judge Janis Sammartino. Moring is a Democrat.

Polly H. Shamoon, 42, of El Cajon, has been a deputy district attorney with the San Diego County District Attorney's Office since 1993. She earned a Juris Doctorate degree from the University of San Diego School of Law and a Bachelor of Arts degree from University of San Diego. She fills the vacancy created by the retirement of Judge Larrie R. Brainard. Shamoon is a Republican.

Sim Von Kalinowski, 53, of San Diego, has been a deputy city attorney with the San Diego City Attorney's Office since 1981. He earned a Juris Doctorate degree from McGeorge School of Law and a Bachelor of Arts degree from the University of the Pacific. He fills the vacancy created by the conversion of a court commissioner position on February 1, 2008. Von Kalinowski is a Republican.

Sonoma County Superior Court
Virginia Marcoida, 56, of Santa Rosa, has served as a deputy public defender with the Sonoma County Public Defender's Office since 1985. She previously was an attorney with Porter & Dunham in Paris, France from 1983 to 1984. Marcoida was also a deputy public defender with the Santa Clara County Public Defender's Office from 1978 to 1982. She earned a Juris Doctorate degree from the University of Santa Clara School of Law and a Bachelor of Science degree from the University of Santa Clara. She fills one of the new positions created by Senate Bill 56. Marcoida is a Democrat.

Stanislaus County Superior Court
John D.Freeland, 51, of Modesto, has been an associate and then a shareholder with Curtis & Arata since 1998. He was a sole practitioner from 1996 to 1998 and was a junior partner with Williams, Romanski, Polverari, & Skelton from 1988 to 1996. Freeland was an associate with Ericksen, Arbuthnot, Kilduff, Day & Lindstrom Incorporated from 1986 to 1988 and, from 1985 to 1986, with Roberts & Moore. He was an associate with the Law Offices of Loraine Wallace in 1985, the Law Offices of Roger Neathery from 1984 to 1985, and with Halston & Clark from 1983 to 1984. He earned a Juris Doctorate degree from the Santa Clara University School of Law and a Bachelor of Arts degree from the University of California, Berkeley. He fills one of the new positions created by Senate Bill 56. Freeland is a Democrat.

Nan C. Jacobs, 57, of Modesto, has been an attorney then partner with Crabtree, Schmidt & Jacobs since 1980. She previously was an attorney with Chessie System Law Department from 1979 to 1980. Jacobs earned a Juris Doctorate degree from Indiana University School of Law and a Bachelor of Arts degree from Indiana University. She fills one of the new positions created by Senate Bill 56. Jacobs is a Democrat.

Interim judgeship in the Orange County Superior Court
Nicholas S. Thompson, 51, of Orange County, has served as a deputy district attorney for the Orange County District Attorney's Office since 1999. He has served as a judge advocate general officer with the U.S. Army Reserve since 2003. He previously served as a deputy public defender in the Orange County Public Defender's Office from 1986 to 1999 and, from 1982 to 1986, was a sole practitioner. He earned a Juris Doctorate degree from Western State College of Law and a Bachelor of Science degree from Western State University. He was elected in June 2008 to fill the vacancy created by the retirement of Judge Richard E. Behn. The Governor's appointment allows Thompson to immediately assume the position he was otherwise elected to begin in January 2009. Thompson is a Republican.

Riverside County Superior Court
John G.Evans, 54, of Riverside, has worked as a sole practitioner since 2004 and from 1996 to 2002. From 2002 to 2004, he was a partner with the Law Offices of Evans & Plott LLP and, from 1985 to 1996, Evans worked for MacLachlan, Burford & Arias as an associate and partner. He was an associate with Furness, Flory & Middlebrook from 1981 to 1985 and held the same position with Harding & Miller from 1979 to 1981. He earned a Juris Doctorate degree from Citrus Belt Law School and a Bachelor of Science degree from the University of California, Riverside. He fills the vacancy created by the retirement of Judge Lawrence W. Fry. Evans is a Republican.

Jorge C. Hernandez, 45, of Riverside, has worked as a sole practitioner since 1994 and as a conflicts panel lawyer for Criminal Defense Lawyers since 2002. Previously, he was a conflicts panel lawyer with the Criminal Defense Panel from 1994 to 2002. From 1989 to 1994, Hernandez was a deputy public defender with the Riverside Public Defenders Office. He earned a Juris Doctorate degree from the University of California, Hastings College of Law and a Bachelor of Arts degree from the University of California, Riverside. Hernandez fills the vacancy created by the retirement of Judge H. Morgan Dougherty. Hernandez is a Democrat.

L. Jackson Lucky IV, 39, of Riverside, has been a deputy district attorney with the Riverside County District Attorney's Office since 1994. He earned a Juris Doctorate degree from Southwestern University School of Law and a Bachelor of Fine Arts degree from DePaul University. Lucky fills the vacancy created by the retirement of Judge Dallas S. Holmes. Lucky is a Republican.

Solano County Superior Court
Robert C.Fracchia, 54, of Vacaville, has served as a commissioner with the Solano County Superior Court since 2005. He was a sole practitioner from 1997 to 2005. Previously, Fracchia was a partner with Dobbins, Weir, Thompson and Stephenson from 1988 to 1997 and was an associate with Diepenbrock, Wulff, Plant and Hannegan in 1983. Fracchia was a deputy public defender with the Solano County Public Defender's Office from 1984 to 1988 and from 1979 to 1980. From 1980 to 1983, he was a partner with the Law Office of Ichikawa and Fracchia. Fracchia earned a Juris Doctorate degree from the University of California, Davis School of Law and a Bachelor of Arts degree from the University of California, Irvine. He fills the vacancy created by the retirement of Judge Michael E. Nail. Fracchia is a Democrat.

Alesia P. Jones, 43, of Oakland, has been an assistant city attorney with the Vallejo City Attorney's Office since 1994. She previously was a deputy city attorney with the Berkeley City Attorney's Office in 1994 and was an associate with Long & Levit LLP from 1991 to 1994. Jones earned a Juris Doctorate degree from the University of San Francisco School of Law and a Bachelor of Arts degree from the University of California, Berkeley. Jones fills the vacancy created by the retirement of Judge R. Michael Smith. Jones is a Democrat.

Earl Bradley Nelson, 56, of Davis, has been a court commissioner since 2007. He was a sole practitioner from 1999 to 2007. Previously, Nelson worked as a partner with Hagler & Nelson from 1990 to 1999 and Power, Hagler & Nelson from 1982 to 1990. Nelson was a deputy public defender with the Solano County Public Defender's Office from 1980 to 1982 and a law clerk then associate with Honeychurch, Finkas and Villarreal in 1980. He earned a Juris Doctorate degree from the University of California, Davis School of Law and a Bachelor of Arts degree from the University of California, Santa Cruz. He fills the vacancy created by the conversion of a court commissioner position on June 30, 2008. Nelson is registered decline-to-state.

Ventura County Superior Court
Ellen Gay Conroy, 64, of Ventura, has served as a superior court commissioner with the Ventura County Superior Court since 2006. She owned Creative Dissolution Family Law Mediation from 2002 to 2003 and was a family law facilitator with the Ventura County Superior Court from 1997 to 2001. Conroy was an associate then partner with Taylor, McCord, from 1984 to 1996 and was a sole practitioner from 1982 to 1984. She earned a Juris Doctorate degree from Ventura College of Law and a Bachelor of Arts degree from the University of California, Santa Barbara. She fills the vacancy created by the retirement of Judge Charles W. Campbell. Conroy is a Democrat.

Senate GOP leader Dave Cogdill says it is "absolutely essential" that the Legislature place a water bond on the November ballot "to ensure that water continues to flow" in the state.

Cogdill, who has been the legislative Republican point man on water negotiations before he took over as Senate GOP leader in May, made the comments in a op-ed published on the Fox and Hounds Web site.

But striking a deal is likely going to have to wait until the budget impasse is complete, as Senate President Pro Tem Don Perata, D-Oakland, has said he doesn't want to negotiate until after the budget.

Cogdill, who doesn't want to wait, said the new bond plan sponsored by Gov. Arnold Schwarzenegger and U.S. Sen. Dianne Feinstein was a "much welcomed shot in the arm for an issue that's been on the backburner for too long."

Feinstein and Schwarzenegger announced their $9.3 billion bond on July 10.

The biggest stumbling block in water bond negotiations has been over the potential inclusion of dams, known in Capitol parlance as "above ground storage." In broad terms, Republicans are demanding dams and Democrats are opposed.

Perata has also wanted the governor to sign legislation to allow for the spending of already-approved bond funds, passed by voters in 2006.

"We cannot afford to let this vital issue be waylaid by partisan politics," writes Cogdill, who, without a hint of irony, makes an explicitly partisan demand in the next sentence. "Additional above-ground storage must be part of the ultimate bond plan, which must be approved in time to go before the voters on the November ballot."

Assemblyman Roger Niello, R-Fair Oaks, joined the budget press release parade Friday, blasting Democrats for their releases:

"While I appreciate today's flurry of press statements from legislative Democrats pronouncing their fiscal responsibility when it comes to borrowing, they are reinforcing the point Republicans have been making for months: budget reform is necessary to prevent future deficits, which will lead to more borrowing. Assembly Republicans want to not only solve the budget problem this year, but for future years as well. By enacting a spending limit and establishing a rainy day reserve, we can end the boom-bust budgeting cycle and avoid future borrowing.

"It must also be pointed out that while Democrats say they are against 'borrowing' they seem to have no problem simply 'taking' money from California's hardworking families in the form of $9 billion in tax increases."

Hours after Senate leader Don Perata declared that borrowing was not on the Senate leadership's budget agenda, Assembly Speaker Karen Bass issued a statement of her own saying borrowing should not "be part of the final solution" for the budget.

Here's Bass' statement in full:

"Major borrowing is not part of the Democratic budget plan, and we don't believe it should be part of the final solution. Our proposal balances the budget with a mix of billions of dollars in difficult spending cuts and new revenues, similar to those proposed by a previous Republican governor. It's gimmick-free and honest. It closes our budget gap in a straight-forward manner, and eliminates out-year deficits."

"We don't have any easy options before us and the clock is ticking. We are continuing to make progress in solving our current budget problems and creating a tax modernization commission that will provide us a path to help us avoid budget train wrecks in the years ahead."

Assemblymember John Laird, chair of the Assembly Budget Committee, issued his own statement:

"The Assembly, the Senate, and now the Conference Committee representing them both, have proposed budgets that are balanced in this year, balanced for the foreseeable future, and which do not rely on borrowing. Any proposal to borrow from voter-approved propositions is not coming from those of us who want to balance the budget without borrowing or gimmicks."

Senate President Pro Tem Don Perata issued a strong, but carefully worded statement Friday insisting that the Democratic leadership in the Legislature has "never entertained massive borrowing as a solution to this year's budget problem."

Perata's statement comes after Capitol Alert reported on Wednesday and the Los Angeles Times reported today that lawmakers are considering raiding transportation and local government funds to balance the books.

In his statement, Perata said, "The Assembly Speaker and I maintain that permanent revenues are needed. Budget reform starts with ending the borrowing and gimmicks and fixing the problem once and for all."

He added, "Doing another get-out-of-town-alive budget would do nothing to help this state but rather would endanger Californians' standard of living and economic future."

The Perata statement issued Friday, however, did not rule out borrowing finding its way into a final budget. The statement reiterated that the Democrats' priority is to find a more permanent solution to the state's structural budget problems.

The Democrats have proposed raising more than $9 billion in taxes, but Republicans have said that plan is dead on arrival.

As Capitol Alert reported Wednesday:

Gov. Arnold Schwarzenegger and lawmakers on both sides of the aisle have repeatedly proclaimed in public that they want to tackle the state's structural budget problems -- not just paper over the budget with borrowing to get out of town.

But given the size of this year's budget hole -- coupled with Republicans' reluctance to raise taxes and Democrats' "line in the sand" on cuts -- the chances of raiding such funds appears very high.

When asked if borrowing from transportation and local government funds was under consideration earlier this week, Lynda Gledhill, a Perata spokeswoman, declined to comment. She said only that the Democrats' priorities were reflected in the conference committee budget, which includes no such borrowing.

Here is Perata's statement in full:

"Today's Los Angeles Times story about state budget negotiations is inaccurate and misleading. Democrats have never entertained massive borrowing as a solution to this year's budget problem. In particular, Democrats have never advocated nor believed in taking money from Propositions 1A, 42 and 10."

"Doing another get-out-of-town-alive budget would do nothing to help this state but rather would endanger Californians' standard of living and economic future."

Sen. Denise Ducheny, the Democratic chair of the Senate Budget Committee, said:

"Democrats have proposed a clear plan that balances the budget and solves the fiscal problem, instead of kicking it into future years and adding billions of dollars of debt that crowds out vital programs, such as K-12 education and health services for poor children and the elderly."

The sponsors of a measure to expand the cages - and proponents say rights - of egg-laying hens in California pumped another $2 million into the campaign this week.

The Humane Society of the United States donated $2 million to pass Proposition 2. That comes on top of the $1.35 million the group previously donated to gather signatures to qualify the measure for the ballot.

The donation means the campaign will almost certainly have enough funds to wage a public campaign come November.

The measure bans confining egg-laying hens in cages that prevent them from extending their wings. It also ostensibly applies to pigs and calves, but cages for those animals are either already nonexistent or being phased out.

Opponents say the measure would raise food prices and drive jobs out of California. They unveiled the "Californians for SAFE food" campaign this week, claiming the Humane Society's measure could actually harm public health by changing hen housing requirements.

The egg producers have been busy padding their campaign coffers, as well, donating more than $1.7 million so far to fight the measure. Two egg farmers donated another $100,000 this month.

The percentage of Californians without jobs continued to rise in June, inching up since May to to 6.9 percent, according to the state's Employment Development Department.

The unemployment rate in May was 6.8 percent. That rate has risen from 5.3 percent in June 2007.

According to an EDD survey, nonfarm payment jobs decreased by 12,800.

In a separate survey, the number of unemployed in the state was 1,278,000, which is 19,000 higher than a month earlier and 310,000 higher than June 2007.

President Bush is hanging out with Gov. Arnold Schwarzenegger in Redding this afternoon to discuss wildfires, only a few days after the Republican governor ripped Bush's global warming policy -- or lack thereof -- in an ABC News interview.

The governor cynically said it is "much better" that Bush recently decided against regulating greenhouse gas emissions because to do so now would be insincere.

"Well, to be honest with you, if they would have done something this year, I would have thought it was bogus anyway," Schwarzenegger said in the ABC interview. "... Because you don't change global warming and you don't really have an effect by doing something six months before you leave office."

Naturally, the governor's criticism of Bush prompted a question from the White House press corps today about whether their relationship is strained, according to a transcript.

"Absolutely not," said White House spokesman Scott Stanzel. "Governor Schwarzenegger is a colorful and opinionated leader who is not shy about voicing his opinions, and we may have different approaches on issues of climate change. That's an issue where the President has really led through the major economies process. And we've had different opinions about how we address those issues, but here we're all coming together."

Gov. Arnold Schwarzenegger called in his special economic adviser David Crane and representatives of three investment houses to again pitch his lottery scheme Thursday, but Democratic leader Don Perata said he remains skeptical the plan could be used to help fill this year's $15.2 billion deficit.

"I think it's pretty conclusive that it's not a budget solution for this year, but it does have potential for the years following," said the Senate's president pro tem.

Schwarzenegger suggested in May that the state "securitize" $15 billion over three years from Wall Street by promising future lottery revenues to investors. The plan would sell $5 billion in bonds immediately to help offset the deficit. Schwarzenegger has insisted the plan is not a borrowing scheme and called it "a gift from the future."

With no budget vote any time soon, Schwarzenegger hosted the first Big 5 meeting in a month and emphasized the clock is ticking for legislators to hand him a spending plan. The state is in its 17th day of the new fiscal year without a budget.

Republicans said they were open to using the lottery plan in this year's budget, but placed priority on a spending cap.

"The serious conversation we're having is about budget reform," said Assembly Republican leader Mike Villines. "I mean, we heard that loud and clear today as well from the financial houses, that the structural budget reform has to be real for creditors and others to see if it's legit. It has to be real, it has to have teeth."

Perata, who has proposed $8.2 billion in tax increases, said a spending cap won't solve the state's fiscal problems.

"I don't think there's a panacea here," Perata said. "I think we do have to be mindful that you either have a static budget or a dynamic budget. A static one says you wake up in the morning and say this is all the money we have. ... A dynamic one says this is what California should be like, and we adjust accordingly."

A new group, calling itself the California Health Care Partnership, announced on Thursday that is is launching a TV ad campaign decrying budegt cuts in Fresno.

As E.J. Schultz reports at the Fresno Bee, that (wink wink, nod nod) coincidentally is the same media market that Assembly Republican leader Mike Villines and Senate GOP leader Dave Cogdill represent:

Backers of a new new television ad denouncing further cuts in health care programs have decided to debut the ad in Fresno, of all places.

Lawmakers earlier this year slashed Medi-Cal reimbursement rates by 10%. The cuts went into effect two weeks ago. As a result, "many providers are being forced to end their participation in the underfunded Medi-Cal program or even have to stop providing services altogether," according to a statement by California Health Care Partnership, the coalition backing the ad.

Watch the ad below:

So who's footing the bill? The coalition paying for the ad includes the AARP, California Medical Association, Service Employees International Union, Catholic Healthcare West, Kaiser Permanente and Health Access.<

Bee columnist Carlos Alcalá started folks off with an ode to the ever-late state budget last week. Here's how some of you balanced the books of his stanzas:

In case you don't recall, here's how he started off the poem:

The budget's late, as usual.
Just blame the party hacks.
They dawdle and they dither,
And their scheduling is lax.
The voters steam and yet we know
Electeds face no axes.
But think what trouble we can face
When we run late paying taxes.

The entries:

It's sad to say, yet still we pay
and re-elect buffoons
that evidently cannot tell
their Augusts from their Junes.
They prance upon their hallowed floors
and march on holy ground
but when the hard work comes to bear
they're nowhere to be found.

There'll come a day some distant May
When leaders dare to tread
where visionary Reagan walked
and Brown the senior led.
A Gov will sign a balanced budget
in black ink all-resplendent
and voters will thank God and shout,
"I voted independent!"
--Anonymous, self-described paranoid state worker

When it all comes down to it
The Democrats love to spend.
Republicans are more selective -
They only give breaks to their rich friends.
The Guv just wants the Legislature
To budget like everyday working people,
But everyone I know is in massive debt
So now CA's credit rating is just as feeble.
--Adam Francis

But nevermind the income tax -
We've lots more left to pay:
Gas tax, park fees, lotto, mortgage,
It will surely end someday...
Thanks to global warming
We will all be in a stew,
And you'll be glad no luxury tax made yachts affordable to you.
--Renee Van Vechten

Our teachers have been pink slipped.
Class-size reduction must go.
Our schools are in a holding pattern,
Because our legislature is so slow.
--Marie Lakin

Proposed cuts to schools have hurt our state's students,
Forcing summer programs to close, and other things imprudent.
Giving teachers and educators the dreaded pink slips,
Makes class sizes grow to feel like packed cargo ships.
That's why we need budget proposals that aren't so short-sighted,
To invest in our future with new revenues, we should all be united.
As the mercury rises in Sacramento and smoke clouds the air,
Leaders should choose common-sense solutions and a budget plan that's fair.
California's schools need more funding -- that much is crystal clear,
Our 46th in the nation ranking on per-pupil spending is a number quite austere.
As funding gets delayed, the schools' jobs only get tougher,
When we can't plan for the future, it's our students who suffer.
That's why we need to move beyond the budget gridlock,
This just isn't the time to run out the clock!
--From the Education Coalition

WSJ pans CA Dems
The editorial page of the Wall Street Journal slammed legislative Democrats proposals for tax hikes to balance the California budget.

Here's the opener:

New York City has long been the highest tax jurisdiction in the United States, but California politicians are proposing to steal that brass tiara. California faces a $15 billion budget deficit and Democrats who rule the state Legislature have proposed closing the gap with a $9.7 billion tax hike on business and "the rich." There's a movie that describes this idea: Clueless.

Arnold still hearts Fabian
San Francisco Chronicle reporter Matthew Yi sat down with the governor this week and, as Yi reports, he couldn't resist asking if Schwarzenegger missed his old negotiating pal, ex-Speaker Fabian Nunez.

Here's Yi's transcript:

Question: Do you miss Fabian Núñez?

Governor: It's hard to say since he's just had vocal chord surgery, so I don't want to bother him. ... But I think in the end he will be helpful. I'm absolutely convinced, you know, because Karen is a terrific woman, but it's the first time she's involved in this. ... (Núñez) saw the bigger picture, but it took him time to get there and now when he got there, he has to go and leave. So, what's that? What kind of system do we have to reward someone who has done well that you have to leave? It doesn't make any sense

Current Speaker Karen Bass didn't sound so thrilled. So told Yi, "Speaker Emeritus Núñez is here on the third floor, and I'm sure any of us can talk to him if we choose to, but I think I have worked very well with the governor. ... The reality is that I'm the speaker."

Poizner on health care
GOP Insurance Commissioner Steve Poizner is widely expected to run for governor in 2010. But as a relative newcomer to politics (he was first elected in 2006), his views on a wide range of issues remain relatively unknown.

Well, in an op-ed in today's Sacramento Bee he outlines his vision for improving health care. Hint: It isn't broad, sweeping reform. Poizner writes:

Some advocate addressing all the problems in one grand reform. Others believe that it should be done in smaller steps. Having worked in both the private sector and now in state government as insurance commissioner, I know the value of both adapting a system to new developments and the virtue of building on what works before throwing out what doesn't.

Specifically, he says it is time for lawmakers to reform the system to providing insurance to high risk customers:

When a working mother loses her health insurance, or a computer engineer is an independent contractor and has no employer, they often have to purchase insurance on the individual market. If they have reasonably good health, they may decide that health insurance isn't as important to them as paying the rent or buying food.

Since January, the number of people on the program's waiting list has grown from 62 to more than 1,000. In the past three months it has seen an astonishing growth rate of 18 percent a week. These people not only have to worry about their medical conditions, they must also live with the real possibility of hospitalization or intensive treatment - costs that could lead them to bankruptcy.

Rough and Tumble to return
Jack Kavanagh, the compiler of the popular clips site rtumble.com, reports that he will be back in the saddle on Friday.

The site has been dormant since July 11, when Kavanagh left a note saying he was "being treated for a nasty stomach flu" in the hospital.

Today, he updated the site to say "the stomach flu turned out to be colitis" and he'll be back on Friday.

In the meantime, Capitol Weekly looked at the world without Jack for a few days.

"I feel totally out of it," said Morgan Crinklaw, communications director for the Assembly Republican Caucus. "I keep reading stories from July 11th thinking they're new."

President Bush arrives in California today to survey the fire-scarred landscape in Northern California, where fires are still burning. Gov. Arnold Schwarzeneggger will join the president throughout his visit.

Here's the Republican pair's itinerary:

2:15 p.m.
Air Force One will arrive in Redding. The president will be greeted by Gov. Arnold Schwarzenegger.

2:30 p.m.
The pair will proceed to a briefing on the fires in Redding.

2:55 p.m.
Schwarzenegger and Bush will tour the Northern Operations Commend Center in Redding, greeting staff.

3:15 p.m.
Back in the air, Schwarzenegger and Bush will take an aerial tour of the areas in Northern California burned by the fires.

3:50 p.m.
Back on the ground, the president and governor will hold a briefing for the press on the status of the fires and their respective efforts to protect the state.

Throughout
Photo-ops

The California Supreme Court declined Wednesday to take an anti-gay marriage initiative off the November ballot.

Opponents of Proposition 8 had sued, hoping to remove it on a technicality. The court denied the petition without comment.

The measure defines marriage as being between a man and a woman.

"Even the court that found a constitutional right to same-sex marriage wouldn't back our opponents' effort to take away our right to vote," is how Brian Brown, executive director
of the National Organization for Marriage, California described the ruling in an e-mail to supporters. "The people of California will have the final say on marriage."

Proponents of the suit, including the American Civil Liberties Union and gay-rights groups, issued a statement saying they were "disappointed."

"Californians do not want their Constitution to single out people to be treated differently. We are confident they will vote NO in November to make sure everyone is treated equally under the law."

Lawmakers are seriously considering grabbing money from local government and transportation funds to balance this year's $15.2 billion budget deficit, say advocates for those programs.

As much as $3 billion could be on the table, but the borrowing would only be a temporary fix for California's structurally unbalanced budget. Two voter-approved ballot measures will force any raids to be repaid -- with interest -- within three years.

"It doesn't do anything to solve the state's ongoing budget dilemma," said Jean Hurst, a lobbyist for the California State Association of Counties. "It doesn't make sense."

Jim Earp, executive director of California Alliance for Jobs, said the state's leaders are also looking to siphon off transportation funds from the sales tax on gasoline. Those funds were devoted to transportation projects through a 2002 ballot measure, Proposition 42.

"We had been assured repeatedly that Proposition 42 was not on the table earlier on for the simple reason that it doesn't solve the problem," said Earp. "But it looks like now, from the information we are getting, that it is definitely on the table."

Gov. Arnold Schwarzenegger and lawmakers on both sides of the aisle have repeatedly proclaimed in public that they want to tackle the state's structural budget problems -- not just paper over the budget with borrowing to get out of town.

But given the size of this year's budget hole -- coupled with Republicans' reluctance to raise taxes and Democrats' "line in the sand" on cuts -- the chances of raiding such funds appears very high.

"Nobody's shocked," said Hurst.

In an interview with The Bee on Wednesday, Schwarzenegger reiterated his opposition to new borrowing.

"Any time you go and do those things, it's maybe one way of getting out of the situation and coming up with a compromise, but I don't think it's the right way to go," said Schwarzenegger.

He insisted his lottery proposal was not borrowing. "Borrowing means that you have to pay back. But this is a gift from the future," he said.

At the same time, the governor's office has been involved in the discussions about taking the transportation and local government funds, advocates say.

The transportation and local government borrowing would come from two sources.

The first would transfer property taxes away from local governments to area schools. That would lower the amount of school spending that musts come out of the state's general fund, helping balance the state's books.

Voters limited that practice in 2004, approving Proposition 1A with 80 percent of the vote. But that measure allows lawmakers to still make such a transfer -- up to two times per decade -- provided the state pays back all the borrowed funds within three years.

Ironically, this is the first year lawmakers are eligible to make the property tax transfer since Proposition 1A passed.

The second would divert gas sales tax revenues from transportation projects -- such as highway construction and mass transit -- to the state's general fund. Voters similarly restricted that practice in 2006, with provisions akin to the limits on taking funds from local government.

Earp said that while the raid is allowed by law, "It was never meant to deal with the structural deficit. It was meant to deal with a short-term cash flow problem."

Mark Watts, executive director of Transportation California, said the raid could have a "devastating effect" on transportation projects in the state.

"That alarms us and so we decided to implement a strong pushback and advocacy," Watts said.

A joint coalition -- including the president of the California Chamber of Commerce as well as union and local government leaders -- fired off a letter to lawmakers Tuesday warning against taking Proposition 42 monies.

"Raiding these transportation funds is a fiscally irresponsible decision that will only make the budget situation worse in out years, hurt our economy and transportation network, and break faith with the voters," the letter said.

Watts said the coalition plans to ratchet up pressure with press events and "possibly some paid media."

Hurst said the counties association had instructed its members to lobby lawmakers, as well.

The two funds are hardly the only pots of money that lawmakers are eying as they struggle to cobble together this year's budget, which is already more than two weeks overdue.

In his May budget proposal, Schwarzenegger proposed "securitizing" $5 billion of future lottery profits for revenue this year and placing another $10 billion in a budget reserve.

Democrats, who have written a counterproposal through a conference committee of the Assembly and Senate, rejected that approach in favor of more than $9 billion in new taxes, mostly on the wealthy.

Republicans rejected the tax plan as dead on arrival.

Other borrowing options contemplated have included taking unspent funds from voter-approved First 5 commissions (roughly $2.4 billion) or temporarily taking money from mental health services funded by Proposition 63. Neither idea has been included in any written budget plan.

"We are willing to look at some borrowing if it has a funding mechanism to pay it off," Assembly GOP leader Mike Villines told Capitol Alert nearly three weeks ago.

The governor's lottery plan, he said, could be such a mechanism.

But the underlining problem to all the internal borrowing -- especially money like that from Proposition 1A and 42 -- is that there's no plan yet on how to repay the taken funds, critics say.

"They haven't got a clue," said Earp, "how they are going to pay the money back."

Kevin Yamamura and Judy Lin, Bee Capitol Bureau, contributed to this report.

Sen. Jack Scott announced Wednesday that he was amending his controversial bill to ban the sale of metallic balloons in California to require a university study of the topic.

The so-called balloon bill has been one of the big public attention-grabbers of the 2008 session.

Scott's bill, SB 1499, had passed out of the state Senate and had a hearing today in the Assembly Appropriations Committee, where it went to the suspense file.

"We have worked diligently on this bill and have come up with a compromise that strengthens the oversight of helium-filled, metallic balloons while removing the opposition of the balloon industry," said Scott in a statement.

The bill's amendments have crossed the desk. You can read them here.

The problems with mylar balloons, advocates of the bill have said, is that they float away, get tangled in power lines and cause power outages.

The new bill makes a couple other minor changes, including prohibiting the use of toys or candy as weights for the balloons (weights are already required), a flier to be posted at the place of sale and an increase in the typeface of the balloon warning label.

The university study, to be performed at the University of California, is to be privately funded.

Senate Republican leader Dave Cogdill said he believes a vote on the budget can happen by August 1, when the state would begin to encounter cash problems.

"I'm confident at this point there will be a budget put up for a vote before the first of August," Cogdill told reporters after speaking to the Sacramento Press Club on Tuesday.

He indicated that it wouldn't be a drill, either.

"Given the reality of the cash crunch that we're in, I don't think so," Cogdill said. "The response ... to that question from Sen. Perata and Speaker Bass have been that they're not interested in doing that. And I think again that is a very constructive and appropriate way to proceed here to see if we can't get to a negotiated settlement before we put a vote up."

During his luncheon speech, the GOP leader responded to Gov. Arnold Schwarzenegger's colorful remarks about the Legislature tardiness on the budget. "I can only get the horse to the water," Schwarzenegger said, "but I can't make it drink."

""We're not going to drink any tax increases," Cogdill said.

Once again, Arnold Schwarzeneggger has reached back to his acting connections to fill a state post. Today, the governor named Bo Derek, the actress turned political activist, to a seat on the California Horse Racing Board.

Derek, shown in a picture from Illinois, where she backed legislation to prevent a horse slaughtering plant from reopening, has been particularly involved in preventing the slaughter of horses.

Derek, 51, has served as spokeswoman for the American Horse Slaughter Prevention Act since 2003, according to the Governor's Office.

Check out her film history at IMBD and her personal Web site.

Her new gig pays a $100 per diem and requires state Senate confimation.

Photo Credit: AP Photo: T.J SALSMAN, May 2004

People have long compared lawmakers to male donkeys, but Gov. Arnold Schwarzenegger drew an analogy to horses Tuesday when it comes to the budget.

"I can only get the horse to the water," Schwarzenegger said, "but I can't make it drink."

The Republican governor continued his slight ramp-up in rhetoric Tuesday intended to pressure lawmakers into reaching a budget deal, speaking at a bill-signing ceremony in Sacramento. He used his horse analogy to illustrate that he has already mapped out a budget plan to resolve a $15.2 billion deficit, and lawmakers have yet to agree 15 days into the new fiscal year.

Schwarzenegger brought out a bagful of vivid language on Tuesday. He said legislators should "not keep kicking that can down the alley," in reference to their ongoing disagreement over tax increases. He disparaged the "whole kabuki (of) who blinks first," in reference to a lack of compromise. He also said lawmakers should "forget about the kabuki and the song and dance."

-- Kevin Yamamura and Judy Lin

Gov. Arnold Schwarzenegger will sign legislation today to place a $900 million bond on the November ballot to finance home loans for California veterans returning from abroad.

The measure, SB 1572 by Sen. Mark Wyland, R-Del Mar, will be the twelfth measure on the fall ballot.

The proceeds from the bond go to the CalVet Home Loan program, which first began giving loans back in 1921, according to the Senate floor analysis of the bill.

Since, voters have approved $8.8 billion in bonds for the program, most recently voting for $500 million in 2000.

The money goes to low-interest loans for veterans. In the history of the program, veterans' payments have always covered the bond principal and interest payments.

There is about $102 million left in the current account, but with President Bush signing a law allowing for recent vets access to the funds (previously it was only those who served pre-1977) the fund is expected to become quickly depleted.

The legislation passed unanimously in both houses of the Legislature. Schwarzenegger will sign the bill at an 11 a.m. event at the California Department of Veterans Affairs.

The sexual harassment lawsuit filed against former state Senate leader John Burton, D-San Francisco, has been settled out of court.

The San Francisco Chronicle's Bob Egelko reports that the lawyer for the ex-executive director of Burton's charitable foundation for homeless kids has settled on confidential terms.

The original suit was filed in January, when Kathleen Driscoll alleged Burton had committed more than 100 acts of inappropriate behavior.

Burton preceded Don Perata as leader of the Senate and earned a reputation for his colorful language. He had never before been accused of sexual harassment.

Back in January, Burton declined to comment on the allegations, but said in a brief telephone conversation that his attorney Susan Rubenstein, "knowing me, thinks I might say something untoward."

Rubenstein dismissed the allegations as groundless.

"We're shocked about the nature of these allegations," Rubenstein said. "John Burton has dedicated nearly a half century of his life to public service and never has he been accused of any kind of sexual impropriety. We believe this is a shakedown, and this woman and her attorney have made this a media event by holding a news conference."

Former Gov. Pete Wilson believes the California state constitution should be amended to both spare judicial candidates from responding to political groups' candidate questionnaires and urge would-be judges to keep their legal views out of politics.

Wilson's novel proposal for a ballot measure "to depoliticize the administration of justice in our state courts" stirred the conversation today at a Sacramento forum for Judicial Council of California.

The group's Commission for Impartial Courts is examining whether political contributions and an increasing campaign role by advocacy groups can undermine an independent judiciary. The issue has been ignited by a proliferation of attack ads against judges in other states and a resulting increase in fundraising by judicial candidates - leaving them open to charges of political bias that could influence rulings from the bench.

Wilson, who joined former Gov. Gray Davis in addressing the panel, urged the Legislature place to an initiative on ballot to force groups seeking to elicit views of candidates for judgeships to stamp their questionnaires with a disclaimer. It would read:

"Judicial candidates are urged by...the constitution of the state of California to consciously forebear from exercising their right of free speech by refraining to answer any question...which seeks to elicit their views."

The proposed wording goes on to say that judges who respond to such political inquiries risk undermining "the fairness and impartiality of the courts of this state" and that their response could cause them from being recused from legal cases.

Appearing at the same forum, Loyola Law School professor Laurie Levenson said Wilson's proposal may conflict with First Amendment rights of freedom of speech. But she said the former governor is tapping into increasing concerns over the role of interest groups seeking to influence the make-up a judiciary that is supposed to be impartial.

"I don't like going around and constantly changing the (state) constitution," Levenson said. "But I don't like that every judge is being asked to fill out these special interest questionnaires."

Levenson warned that California judges and judicial candidates will be increasingly subjected to political attacks but could risk their appearance of impartiality on the bench if they respond.

In 2005, Sacramento Judge Loren McMaster was targeted in an unsuccessful recall over his ruling upholding California's domestic partnership law. Levenson said members of the state Supreme Court who recently ruled in favor of legalizing gay marriage may face a surge of independent attack ads - particularly if voters don't reinstate a gay marriage ban in November.

"Outside groups are going to pour money into California," she said in an interview. "If they don't win in November, they're going to attack the court."

Voters confirm state Supreme Court justices in the next general election after they are appointed by the governor, and the justices come before voters again at the end of their 12-year terms.

Gov. Arnold Schwarzenegger emphasized Monday that he intends to remain in California as governor before pursuing other leadership opportunities, perhaps realizing he left open the possibility he might bolt California early for a White House job in a Sunday interview with ABC News.

"First of all, I have no interest in leaving the state of California until my mission is finished," Schwarzenegger said. "So, you should know that I have promised the people of California that we are going to turn the economy around, fix the budget system, have safe and reliable water in 40 or 50 years from now, not just 2 or 3 years from now. Make sure we have a sound health care system."

ABC's George Stephanopoulos repeatedly asked Schwarzenegger in an interview whether the governor would consider taking on a role as "energy and environment czar" in a hypothetical Barack Obama White House. The Republican governor, who has endorsed Obama opponent John McCain, did not rule out the possibility in the interview, sparking a flurry of further speculation.

"These are all hypothetical questions," Schwarzenegger said Monday. "We have our hands full with reality, just to fight those fires and bring the economy back and put people to work, that I don't want to deal with hypotheticals. Reality is challenging enough."

First Lady Maria Shriver has been determined to turn California institutions into major productions, including the California Museum (which now has a Hall of Fame) and the annual Women's Conference.

As recently as 2003, the star power at the annual women's conference (which was then dubbed the Governor's Conference for Women) consisted of Gov. Gray Davis and actress Jamie Lee Curtis. Shriver hosted former Supreme Court Justice Sandra Day O'Connor in 2005, the Dalai Lama in 2006 and former British Prime Minister Tony Blair in 2007.

Shriver today announced this year's lineup for the Oct. 21 and 22 event in Long Beach. The cast includes Bono from U2, investing guru Warren Buffett, entertainer Jennifer Lopez and Secretary of State Condoleezza Rice. Others include Lance Armstrong, Christiane Amanpour, Sally Field, Michael J. Fox, Heidi Klum, Dr. Mehmet Oz and Russell Simmons. Rachael Ray is slated to appear in a new pre-conference event. And Gov. Arnold Schwarzenegger will be there, as always.

But the most interesting selection may be talk show host Chris Matthews. Perhaps he and feminist pioneer Gloria Steinem (also scheduled to appear) can debate whether the media fairly treated Sen. Hillary Clinton during the Democratic primary.

Matthews came under fire from women's rights groups in January when he said of Clinton, "The reason she's a U.S. senator, the reason she's a candidate for president, the reason she may be a front-runner is her husband messed around."

Matthews later apologized after Steinem and other leaders penned a letter to NBC News accusing the "Hardball" host of a "string of sexist attacks he has made against prominent female political figures."

UPDATE (5 p.m.): Women's Conference spokeswoman Marissa Moss said the event sold out 11,000 tickets for the Oct. 22 program by noon today.

The San Francisco Chronicle's Matier and Ross have an item in today's paper about some potentially intriguing consultant shuffling among Democrats aiming for the governorship.

San Francisco Mayor Gavin Newsom was the first to open an exploratory committee for the state's top job, but others, including Attorney General Jerry Brown, have been making noise about joining the race.

The Chronicle reports Brown may tap a figure formerly close to Newsom as a strategist:

Reliable sources tell us that Brown has approached San Francisco PR consultant Alex Tourk to help launch his own campaign for governor, and the two were in serious talks this past week.

Brown's job offer is all the more interesting given that Tourk has remained a good buddy of Newsom's chief political consultant, Eric Jaye, who is busy these days plotting how to get the mayor - and not the AG - elected governor.

Tourk did more than run Project Homeless Connect. He was Newsom's deputy chief of staff and his campaign manager for his 2007 reelection -- until the news of the affair broke.

The California Budget Project, the nonpartisan but left-leaning fiscal group, has created a document comparing four different budget plans: The governor's May revision, the Assembly and Senate plans and the conference committee plan.

Check out all four, with side-by-side comparisons.

Two new records were set in the recently completed June 3 primary.

For the first time - but likely not the last - a majority of Californians voted not at the polling station but via mail.

But that record was aided by another: The election, with 28.2 percent of registered voters casting ballots, was the lowest turnout of a regularly scheduled election in California history, according to Secretary of State Debra Bowen.

A total of 58.7 percent of voters cast ballots by mail. That shattered the two-year old record of 46.9 percent, set in June 2006, according to Bowen.

The previous record low turnout - also set in June 2006 - for a regular election was 33.6 percent. (Two special elections in 1979 and 1993 set the all-time lows of 24.8 and 27.7 percent respectively.)*

"Splitting the primary to increase California's say in the presidential contests did give the state more clout in February, but everyone knew from the start that it ran the risk of orphaning the June election," said Bowen in a prepared statement. "As feared, turnout plummeted last month when there was no top-of-the-ticket excitement to attract voters to the polls."

Los Angeles led the state in apathy. Only 20 percent of registered voters cast a ballot in California's largest county - dragging the average down for the entire state.

Overall 13 of the state's 58 counties voted at a rate less than 30 percent. Registered Sacramento County residents cast ballots at a rate of 29.88 percent.

Back in February, 9.1 million Californians voted. (Dan Walters wrote up the details of that statement of the vote). In June, only 4.6 million voted.

See the secretary of state's complete report.

*The secretary of state's office has since reported the struck-through sentence is incorrect.

Carly Fiorina, former chief executive officer of Hewlett-Packard, oft-mentioned 2010 gubernatorial candidate for the GOP and now an economic adviser to Sen. John McCain's campaign, was on National Public Radio's "Morning Edition" today talking about tax cuts.

But she also talked about herself.

"Well, I personally happen to be pro-life," she said. "John McCain has a very long pro-life record and he won't walk away from that record. I also know that there are many, many women who disagree with me on that, and I respect that. For those women who are a single-issue voter on the subject of abortion, John McCain won't get their vote, and I accept that."

Would she accept the VP slot on the McCain ticket?

"I am honored to serve him now. I would be honored to serve him later."

Listen to the full NPR report here.

After water bond talks with Senate Democrats failed last year, Gov. Arnold Schwarzenegger proposed a new $9.3 billion water bond Thursday with U.S. Sen. Dianne Feinstein that still could lead to new dams and a Delta canal but provides additional funding for conservation and water recycling projects.

The new plan does not have a legislative author and the governor has not struck a deal with lawmakers. Schwarzenegger and Feinstein sent the proposal this afternoon to the four legislative leaders in hopes of brokering a deal that could put a water bond on the November ballot.

Feinstein joined forces with Schwarzenegger earlier this year to pursue a water bond in California. The Republican governor had hoped enlisting one of the state's leading Democrats would lead to a deal, but Democratic lawmakers have raised environmental concerns since last year about the environmental impacts of dams and other projects.

"There is an urgent need for comprehensive water reform, and this bipartisan plan is offered as a potential compromise that puts us on the path toward restoring the Sacramento-San Joaquin Delta, expanding water supplies and promoting conversation efforts that will ensure a clean, reliable water supply for California," Schwarzenegger said in a statement provided by his office. "I know that legislative leaders recognize the urgent need to address California's water crisis, and I look forward to working with them to present a plan to voters this November."

The $9.3 billion bond breaks down as follows:

• $3 billion for new water storage, including dams and groundwater projects. The state would provide up to half of funding for these projects, with water suppliers paying for the rest.

• $1.9 billion for Delta sustainability. This includes money for a potential canal to transfer money around the environmentally sensitive Delta, as well as funds to improve water quality and levees.

UPDATE (3:50 p.m.): Department of Water Resources Director Lester Snow emphasized in a briefing that the money does not pay for construction for a canal but rather for Delta projects that lay the groundwork for any water transfer system, be it a canal or some modification of the existing conveyance method.

• $2 billion for water supply reliability projects around the state that could be used to boost efficiency and for groundwater and surface storage.

• $1.3 billion for improvements along the Klamath River and other waterways, invasive species removal and other restoration projects.

• $800 million to reduce groundwater contamination and improve water quality.

• $250 million for water recycling.

The California Republican Party poured $345,000 into Assemblyman Greg Aghazarian's state Senate campaign last week, a sign that party leaders hope to make a run at the seat of termed-out Sen. Mike Machado, D-Linden.

The party followed up that donation by giving $595,000 to former Assemblyman Tony Strickland, the GOP nominee in another fall Senate campaign.

The races are the only two of the 20 Senate seats up for election in November where competition is expected.

"If you look at the state Senate races, there are two of them," said party spokesman Hector Barajas. "These are two candidates that we feel can do quite well in the districts."

Aghazarian, a Stockton Republican in his third and final term in the Assembly, is running against Assemblywoman Lois Wolk, a Davis Democrat. Strickland is opposed by former Assemblywoman Hannah-Beth Jackson, D-Santa Barbara, in the campaign to succeed termed-out Sen. Tom McClintock, R-Thousand Oaks.

Republicans face an uphill battle to win Machado's seat, a contorted district that includes all of Yolo and parts of Sacramento, Solano and San Joaquin counties.

In the most recent voter registration statistics, Democrats account for a little more than 47 percent of registered voters in the district, while Republicans make up 31.5 percent of voters.

Republicans took at a shot unseating Machado four years ago, when former Stockton Mayor Gary Podesta challenged Machado in a $9.9 million campaign. At the time, that was the most expensive legislative race in California history.

What's worse for Republicans is that the district has turned decidedly bluer in the past four years. In October 2004, Democrats held a 10-point registration advantage over Republicans. That gap has since grown to 15.5 points.

Allan Hoffenblum, the publisher of the California Target Book, which analyzes political races in the state, said the Aghazarian donation was to send a message to GOP donors.

"It is a statement by the GOP leadership that they are going to take that race seriously," Hoffenblum said.

In the early money race, Aghazarian has a significant financial advantage, with more than quadruple the cash-on-hand of Wolk.

As of mid-May, Aghazarian had $530,000 in the bank, with $44,000 in debts. Since then, he has received another $105,000 from three local GOP county committees as well as the big recent check from the state party. That brings his rough total to $936,000.

Wolk had $176,000 in her treasury as of mid-May, with $20,000 in debts.

The Democratic Party, however, is expected to have plenty to spend to contest both seats in the fall. The California Democratic Party reported more than $7.9 million in the bank as of May, a $3.8 million advantage over the Republican Party, which reported $4.18 million.

Outside independent expenditures are expected to play a role in both races, particularly the Strickland-Jackson showdown, which Hoffenblum described as the "most competitive" Senate race in the state.

"It is really a swing, moderate district," he said, "but (the voters') choice is going to be a very liberal Democrat or very conservative Republican."

Strickland, like Aghazarian, holds a fundraising lead over Jackson, though by a much slimmer margin until the party's nearly $600,000 financial boost.

As of the May filings, Jackson had $302,000, with $5,000 in debts. Strickland reported $492,000 with $36,000 in debts. Both have raised roughly $100,000 in large contributions since, though the state GOP donation to Strickland gives him a wide cash-on-hand lead.

Hoffenblum warned against reading too much into the numbers.

"No Democrat in California is going to lose for a lack of money," he said. "It's not going to happen.

The Democrats control 25 of the 40 state Senate seats, but need 27 votes to pass the budget or raise taxes. One GOP senator, Abel Maldonado, R-Santa Maria, often votes with the Democrats on key issues, such as last year's budget. That means a sweep of both the Machado and McClintock seats would bring the party close to a governing super-majority.

Photo credits: Assemblyman Greg Agharazian on the Assembly floor for the first time in 2002. Dick Schmidt, Modesto Bee, December 2002.

Former Assemblyman Tony Strickland at the California Republican convention in August 2006. Brian Baer, Sacramento Bee, August 2006.

The California chapter of the Service Employees International Union has been one of the more influential forces in state politics and policymaking.

In today's paper, Capitol Weekly profiles Courtni Pugh, who recently replaced Dean Tipps as political director of the powerful labor group.

Pugh takes over a labor group that has faced its own internal strife.

Anthony York at Capitol Weekly reports SEIU is considering backing Proposition 11, the redistricting measure on the November ballot:

The fact that SEIU finds itself divided, and possibly at odds with Democratic Party leadership over redistricting is the latest illustration of an internal belief that the union, which represents nearly 2 million people nationwide, is powerful enough to take its own stand, regardless of what other political or labor leaders may think.

"We're large enough to take risks," says Pugh. "We're going to do what's best for working people, and for our membership."

Pugh comes from Washington D.C., an ally of SEIU national president Andy Stern. CW reports:

"Courtni is one of the brightest and best political talents on the scene," said Roger Salazar, who worked with Pugh on John Edwards' presidential campaign in 2004. "If anybody's going to be able to step up and continue SEIU's political legacy, it's Courtni."

Salazar, ironically enough, is the communications director for the Democratic Party that SEIU might buck in backing the redistricting initiative.

Maria Elena Durazo, execuitive director of the Los Angeles County Federation of Labor, called Pugh "very tough."

"She's got a lot of experience under her belt, but she's young enough where she's going to learn a whole lot more, which is a good thing," Durazo told Capitol Weekly.

As for the ongoing budget fight, Pugh said, "I think there is a coalition of the willing focused on how to protect the health and human services budget."

The Bee's Denny Walsh reports on the one and only witness the defense called in the case of San Francisco political power broker Julie Lee: Former Speaker and San Francisco Mayor Willie Brown.

Lee, a political fundraiser, is accused of laundering $125,000 in state grant money to the 2002 campaign of Secretary of State Kevin Shelley. Shelley later resigned, but there is no evidence he had any knowledge of the allegedly diverted funds.

Back to trial, Lee's defense attorneys called Brown to the stand as a character witness for Lee.

And, from the sound of it, he stole the show.

Walsh reports Brown testified "nattily dressed as always in a gray suit and dark shirt and tie", praising Lee:

Defense lawyer Lidia Stiglich noted she asked Brown to be at the courtroom at 1 p.m., and he was not called to the stand until almost 3.

Stiglich later rested Lee's case, and the two sides will make their closing arguments today.

Steve Maviglio, the ubiquitous communications aide to Assembly Speaker Karen Bass, has been tapped to run Kevin Johnson's mayoral campaign against Heather Fargo.

Maviglio, a Democrat, will split duties between Johnson's campaign headquarters and Bass' office until lawmakers resolve a $15.2 billion budget shortfall, which means sometime between next week and Thanksgiving. If the state gets a budget before Election Day, Maviglio will work full-time for Johnson thereafter.

Maviglio replaces Erin Lehane, who recently went on maternity leave.

Maviglio, a former New Hampshire state legislator, has worn numerous hats in recent years. He was the press secretary for Gov. Gray Davis, sat on the Unemployment Insurance Appeals Board and worked as a top aide to former Speaker Fabian Núñez. He was one of several well-known Capitol insiders quietly advising Johnson this spring, though he's the first to take an official campaign staff position.

"I've been helping on the campaign as an unpaid adviser for a few months not because I knew Kevin that well but because I thought the city needed a change," Maviglio said. "I'm on gracious loan from the speaker, so I will be (in the Capitol) as much as I need to be on the budget."

The reactions to the budget stalemate -- and the Democrats' plan to raise revenues through a series of tax hikes -- have been pouring in via press releases, events and blogs. Here's a sampling:

Karen Bass, the speaker of the Assembly, said, "Californians are telling us don't decimate education, don't shred the safety net, don't close parks and provide health care for kids -- don't close clinics."

"The straight truth is that takes revenue," she said.

But California Taxpayers' Association President Teresa Casazza said, "This is not budget management. This is a recipe for recession. During an economic downturn, the last thing Californians need are more taxes."

Not that the taxes will pass, blogs Jon Fleischman, a vice chairman of the state Republican Party, on the FlashReport.

"Fortunately for California taxpayers, the California Constitution requires a two-thirds vote to pass both tax increases and a budget," he writes. "I spoke with several Republican legislators from both chambers last night, and there is no interest whatsoever in supporting this proposal. It is dead in the water."

Tim Herdt, the Ventura County Star columnist, sees the two-thirds requirement differently. "The budget is chronically late for a single reason: 81 of the state's 120 lawmakers have to agree to it," he reports.

Back to the taxes at hand, Democrats are generally sounding supportive.

"A cuts only budget devastates the most important infrastructure in California, the intellectual infrastructure. The economy cannot succeed unless we have the best education system in the world. We are far from it," Lt. Gov. John Garamendi, a Democrat, said in a statement.

Assemblywoman Fiona Ma, D-San Francisco, sees the taxes-not-just-cuts approach helping the poor. "When families are choosing between rent, food, and gasoline costs, this is not the time to severely cut social programs Californians need the most," she said in a statement. "Closing tax loopholes, making reductions where we can, and asking those who can pay the most to help their neighbors have delivered a balanced budget."

Senate leader Don Perata, D-Oakland, says too deep of cuts will damage California's future. "We will not turn California into a second-class state," he said.

Assemblyman John Laird, a Santa Cruz Democrat and the Assembly's chief budget writer, called the plan "compassionate budget that fixes California's budget problem and restores draconian cuts the governor proposed."

"This is a compromise budget that includes a responsible mix of cuts and revenue increases," Laird said.

Republicans, well, just plain disagree.

"Raising the rates in two tiers, up to 10 and 11% should strengthen the Mayflower portion of the economy as more investors and companies and their employment load onto those moving trucks," Assemblyman Doug LaMalfa, R-Oroville, wryly blogs on the FlashReport. "Many are staying home this summer because of skyrocketing fuel prices as well as higher costs of food and everything else ... couple that with this tax plan ... yeah, lots of happy families in California this year."

Sen. Bob Dutton, the Senate GOP budget vice chair, agreed with LaMalfa: "With California families paying more than $4.50 a gallon for gasoline, significantly more at the grocery store and have seen the value of their homes plummet, the last thing we should do is further burden taxpayers but that's exactly what Democrats have proposed to do by raising taxes."

Joel Fox, president of the Small Business Action Committee, writes on Fox and Hounds Daily that "there is a clear disconnect in understanding the effects of tax increases on the budget. "

"The Democrats trumpet their proposal of creating two new tax brackets for upper income taxpayers by pointing out that (Gov. Pete) Wilson raised taxes to those levels during a budget crisis in the early 1990s," Fox wrote. "Nowhere is it mentioned that the upper income tax increase did not bring in the revenue expected. It stymied growth and killed incentive and income tax revenue was flat after the tax increase was implemented. Wilson later called the tax increase a mistake."

The take of Assemblyman Roger Niello, the Republican vice chairman of the Assembly Budget Committee: "The Democrat majority believes that we need to pile on with tax increases so that the government doesn't have to make the tough adjustments that California families must."

But Laird, the Democratic chairman, says now that Dems have announced their tax plan, it is time for Republicans to specify all the cuts they want.

"If a cuts-only budget is the alternative, then we need to see a detailed proposal put on the table for everyone to see," Laird said.

Loren Kaye, president of the California Foundation for Commerce and Education, a business-backed think tank, criticized the specific policies in the Democrats' plan.

"First, about one-fifth of the revenue increases are really just accelerations or gimmicks, which would create a $2 billion hole in next year's budget," Kaye wrote on Fox and Hounds.

"Second, about two-thirds of the tax increase is aimed at high-income Californians, who are far more able to become high-income residents of other states than are other California taxpayers. Have no lessons been learned about the volatility of California's income tax and the mobility and flexibility of the upper reaches of the economy?"

Kaye concludes: "The best that can be said of this action is that the Democrats have finally played the tax card, which means that legitimate negotiations and vote counting can finally be engaged. Next move is ... Governor?"

But Gov. Arnold Schwarzenegger seems none too eager to take the lead. In an appearance this morning, he hedged about what comes next:

"I want to have Republicans who are working very hard to fix the budget, I want to have the Democrats working hard to fix the budget. Take all their proposals, put it on the table, there's a lot of creative minds over there at the Capitol. You know, we have had some answers, we think great answers, to find a solution."

OK, then. Problem solved.

As for the all-important question of whether he'll back new taxes, Schwarzenegger said no. Kinda.

"You know I have always been against tax increases, but I always want to keep everything on the table, because you cannot go into negotiations and say don't talk to me about this, don't talk to me about that. You have to be open minded, and that's the only way we can get a compromise done. So, I'm open minded, but I'm against tax increases."

We'll let Brian Joseph, a reporter for the Orange County Register, have the last word.

"I have good news and bad news this morning. The good news: there's finally some action on the state budget. The bad news: it probably won't amount to a hill of beans."

Former Assembly Speaker Fabian Núñez and Democratic Rep. Linda Sanchez were among the 19 Democrats named to the Democratic Party's national Platform Drafting Committee.

According to the Democratic National Committee, the committee will prepare an "initial draft of the platform. The statement of policy priorities for the party will then be taken up at the national convention in Denver at the end of August.

Late Tuesday night, legislative Democrats announced their plans to raise taxes to help balance the state budget.

Not that the plan is going anywhere fast. "I guarantee you it will be a troubled and very challenged proposal on the Assembly floor," said Assemblyman Roger Niello, R-Fair Oaks.

The Bee's Judy Lin and Dan Smith have a complete story, but here's an at-a-glance list of the tax proposals:

New income tax brackets
Revenue generated: $5.6 billion
Reinstates 10 percent and 11 percent tax brackets for wealthiest Californians. Income tax rates range in California from 1 percent to 9.3 percent. The new proposal would raise the rate to 10 percent for "taxpayers filing joint returns with taxable income above $321,000 and 11 percent for those with incomes above $642,000."

Suspend "net operating losses" for corporations
Revenue generated: $1.1 billion
For three years, big business would lose its "net operating loss" deduction. That allows companies to carry forward losses from one year to the next and use them as a deduction in taxes.

Suspend inflation indexing of state income tax brackets
Revenue generated: $815 million
This plan would suspend the adjustment of income tax brackets for inflation. As a result, Democrats say, a single filer with a taxable income of $50,000 a year would pay $34 more, while a taxpayer with income exceeding $97,000 would pay about $180 more.

Eliminate dependent credit for those with incomes above $150,000
Revenue generated: $215 million
The dependent tax credit was $294 last year. The LAO proposed lowering the credit to $94 -- the amount of the individual exemption. The legislative Democrats have proposed lowering the tax credit for those taxpayers with adjusted gross income above $150,000.

Raising the franchise tax
Revenue generated: $470 million
The top tax rate for corporations is currently 8.84 percent. The proposal returns the tax rate to 9.3 percent, where it was in 1997.

Steps up tax enforcement
Revenue generated: $1.5 billion
This is a plan to collect taxes already owed to the state, to be "modeled after successful tax amnesty efforts in the past," according to legislative Democrats. They said some of the $1.5 billion in revenue "will be an acceleration of revenues that would be paid in the future."

The California Democratic Party has donated $250,000 to help Don Perata pay off his legal bills, as the Senate Democratic leader continues to rack up expenses fending off an ongoing FBI corruption investigation.

The party made the quarter-million dollar donation on July 1, according to campaign filings.

The money comes just in time for Perata, who, according to a May disclosure, had only $273 cash on hand in his legal defense fund and $250,000 in unpaid bills.

Jason Kinney, a spokesman for Perata on legal issues, said the donation -- and the continuing expenses -- are "no indication of anything."

"As long as this scurrilous and seemingly endless investigation continues to meander, Senator Perata will unfortunately continue to accrue significant legal expenses," Kinney said.

An Oakland-based federal grand jury launched the Perata investigation in 2004, probing the business dealings of Perata, his family and close friends. That year, FBI agents raided the homes of both Perata and his son, Nick. A year later, investigators subpoenaed Perata's Senate e-mails over a six-year period.

The FBI probe has been publicly quiet of late, last bubbling to the surface in November, when the Los Angeles Times reported on recent activity by investigators. There has been no indication the probe is close to ending, either with an indictment or nothing at all.

Through it all the Oakland Democrat's legal bills have mounted, with total spending to fight the probe topping $1.9 million, as of the latest campaign filings.

The Senate leader spent $742,000 in 2005, $338,000 in 2006, $531,000 in 2007 and $289,000 so far in 2008.

The lion's share of spending has gone to the law firm Stevens & O'Connell. Perata's lawyer, George O'Connell, is a former U.S. attorney in Sacramento. A smaller share has gone to the Olson, Hagel & Fishburn law firm. Some money has gone to the Mason Investigative Group, a private investigating firm, and Kinney, Perata's spokesman.

Kinney said the spending is for "extensive legal research and analysis."

The breadth of the federal investigation "requires our legal team to look at what they're looking at -- which is everything," Kinney said.

The investigation has taken a political toll, as well. Opponents of the term limits extension measure, Proposition 93, on the Feb. 5 ballot, used the investigation to bludgeon the initiative as a tool of corrupt politicians.

"Proposition 93 is a fraud created by two politicians, one under investigation for misusing campaign funds for lavish shopping sprees, and the other whose house was raided by the FBI in an ongoing corruption scandal," said one TV ad.

The Democratic Party is the single largest donor to Perata's legal war chest, with a total of $450,000 in contributions (another $200,000 was given last December).The next largest donor is Sacramento developer Angelo Tsakopoulos, who has given $100,000.

Unlike regular campaign contributions, which are limited to $3,600 per election, donations to the legal fund can be made in any size.

Roger Salazar, communications director for the Democratic Party, defended the six-figure donation.

"The California Democratic Party contributes to Democrats, including our leaders," Salazar said. "That's what we do."

It is important, he said, that "when the leaders of our party get attacked ... the party is there to assist them as well."

He insisted the nearly half-million in contributions in the past eight months will not hinder Democratic election efforts come November. He pointed out two counties -- Ventura and Stanislaus -- recently "turned blue," meaning Democrats now outnumber Republicans there.

"There is not anything that we are going to be neglecting to have a successful November for all of our Democrats," Salazar said.

Perata, he noted, like the rest of the legislative leadership, is "very instrumental in helping raise money for the party."

With fires burning across the state, Gov. Arnold Schwarzenegger last week urged Californians to get out of their homes as soon as emergency crews ordered mandatory evacuations.

And, in doing so, he used a little typical-of-Arnold bravado.

"We cannot think selfishly here, and I'm going to stay in my house, and I'm ballsy, and all those things. It doesn't work. You know, just listen to the authorities and just move out," Schwarzenegger declared.

But that's not quite what appeared in the transcript later sent out by the governor's office, as Joe Matthews at the Blockbuster Democracy blog pointed out.

The transcript read: "We cannot think selfishly here, and I'm going to stay in my house, and I'm boss, and all those things."

Notice the missing "ballsy" comment.

Aaron McLear, Schwarzenegger's press secretary, assures that there was no foul play with the transcript.

"We send our audio from events to a transcription service and sometimes the governor's unique accent confuses the transcribers," McLear said, who forwarded Capitol Alert the original transcript provided by the service.

The governor's press office doesn't edit the transcripts before sending them out, he said.

"We never edit except if they have a name spelled wrong. We never edit for content," McLear said. (They do edit out answers to political questions for legal reasons, he said.)

"We have limited resources, and we put the transcript out to be helpful to you guys," McLear added. Rechecking every transcript would be "a waste of time," he said.

You can watch the video of the Schwarzenegger event here. The "ballsy" comment comes roughly two-thirds through the event.

Bee columnist Carlos Alcalá has been known to pen a poem or two, and has a new offering on the overdue state budget. He's wondering if anyone out there can suggest a verse to add.

Send suggestions to calcala@sacbee.com. We'll publish the best on Capitol Alert.

Here's Carlos' opener:

The budget's late, as usual.
Just blame the party hacks.
They dawdle and they dither,
And their scheduling is lax.
The voters steam and yet we know
Electeds face no axes.
But think what trouble we can face
When we run late paying taxes.

Think Antonio Villaraigosa doesn't want to move up the political ladder? Think again.

The Los Angeles Mayor is in Washington D.C. today to introduce Sen. Barack Obama at the national convention of the League of United Latin American Citizens, better known as LULAC.

Villaraigosa, you'll recall, was a major backer of Sen. Hillary Clinton in the primary, traveling across the country for her. Now, he's firmly in Camp Obama, helping the Illinois Democrat reach out to Latinos, who overwhelming backed Clinton in the primaries.

But the Los Angeles Times' Phil Willon has a fun anecdote from an event Monday where Villaraigosa, ever-aware of cameras, shied away from firing off a pistol to start a swim race.

At a news conference this morning, the mayor announced a new agreement between the city and the Los Angeles Unified School District to open up 15 LAUSD pools to the public during the hot summer months.To commemorate the deal, Villaraigosa was supposed to shoot a starter pistol and send about a dozen high school kids into the gleaming, Olympic-sized pool.

Instead, he picked up the microphone and counted to three.

Villaraigosa just completed a mad dash of 12 fundraisers in 11 days.

We've replaced the original post here with an updated version, cross-posted at sacbee.com. The new post includes an interview with Campbell.

Republican Tom Campbell, who served in the state Senate, Congress and, briefly, as Gov. Arnold Schwarzenegger's budget director, has filed paperwork to explore his own run for governor.

The moderate former lawmaker from Silicon Valley is the first Republican to file papers to succeed Schwarzenegger in 2010.

"I'm serious or I would not have begun the process," Campbell said in an interview today.

"I've got a lot to say, but I am going to take it in steps," added Campbell, who has not held elective office since 2000 .

Fresh from a family vacation to Glacier National Park, Campbell, who stepped down as the dean of the Haas School of Business at the University of California, Berkeley, on June 30, said he was simply taking the first necessary step to become California's next chief executive.

"You cannot set up a post office box without setting up an exploratory committee," Campbell said of the state's campaign laws.

Campbell, 55, has twice before run for statewide office, losing both times, most recently in a 2000 bid for U.S. Senate against Dianne Feinstein.

Campbell brings a long political and academic resume to the governor's race. He received a law degree from Harvard, a Ph.D. in economics from the University of Chicago and clerked for a U.S. Supreme Court justice early in his career. He served two stints in Congress for a total of nearly a decade and was Schwarzenegger's finance director most of 2005.

As for his priorities should he be elected, Campbell demurred. "If I make the formal announcement then I would obviously go into much more detail," he said.

Campbell is unlikely to have a clear run in the GOP primary.

Republican Insurance Commissioner Steve Poizner, who is a multimillionaire former Silicon Valley executive, is widely expected to enter the race. Former eBay chief Meg Whitman, who is a senior adviser to Sen. John McCain, is also possible GOP candidate.

Both Whitman and Poizner could finance their own campaigns.

Campbell's timing -- like that of Democratic San Francisco Mayor Gavin Newsom's exploratory committee filing last week -- allows him to raise money for his bid for six months before having to report any donations.

Newsom is the first official entrant in what's expected to be a crowded Democratic field. Other possible candidates include Attorney General Jerry Brown, Lt. Gov. John Garamendi, former state Controller Steve Westly, Los Angeles Mayor Antonio Villaraigosa, state Superintendent of Public Instruction Jack O'Connell and state Treasurer Bill Lockyer.

In this age of technology and infinite information at our fingertips, even the government doesn't know what to do when the power goes out.

That was the case this afternoon at the Capitol when the power died sometime between 2:45 and 3 p.m., and came back around 3:30 p.m.

Though the Senate floor session continued uninterrupted, with plenty of juice to power its giant legislative scoreboard, staffers sitting in dark offices throughout the Capitol twiddled their thumbs, considered leaving for the day, or desperately sought duties they could fulfill without electricity.

"We're not sure what caused the outage, but we're hoping to figure that out.." said Beth Mills, spokesperson for the Department of General Services. Mills said engineers initially thought that the downtown power grid had been the issue, "but they were to determine it was just a problem with the Capitol building."

Emergency generators sprang to life as the power crashed, she said, and no security measures in the building had been compromised.

With Sacramento's 100-degree heat today, many were thrilled that the building's air conditioning remained on.

Assembly Speaker Karen Bass continued to put her imprint on policy-making in the lower house on Monday, announcing three new chairs of standing committees -- the Assembly water, education and agriculture panels.

• Assemblyman Jared Huffman, D-Marin, will take over the Water, Parks and Wildlife Committee. He replaces Assemblywoman Lois Wolk, D-Davis, who is running for state Senate. Huffman is currently a member of the water panel.

• Assemblywoman Julia Brownley, D-Santa Monica, will chair the Education Committee. She takes over for termed-out Assemblyman Gene Mullin, D-South San Francisco. She is a current member of the education panel and has chaired the budget subcommittee on education in the current session.

• Assemblywoman Cathleen Galgiani, D-Stockton, will be the next chair of the Agriculture Committee. She will replace termed-out Assemblywoman Nicole Parra, D-Hanford, assuring that the ag committee remains in moderate hands. Galgiani and Parra are among the most business-friendly Democrats in the Assembly. Both hail from the Central Valley.Galgiani is a current member of the agriculture committee.

The new chairs all will replace termed-out members of the Assembly and will take over at the start of the next legislative session in December.

All three incoming chairs are current freshman members.

The ascent of Huffman to the water committee likely means an opening for the gavel of the Environmental Safety and Toxic Materials Committee, which he currently chairs.

The other outstanding piece of the chairmanship puzzle remains the next chair of the Elections Committee. That seat has been open since mid-May when Bass named Assemblyman Curren Price the next chair of the Governmental Organization Committee.

Here's a recap of the change under Bass' regime:

Majority leader: Alberto Torrico
Assistant speaker pro tem: Lori Saldaña
Appropriations: Kevin De Leon
Budget: Noreen Evans
• Rules: Ted Lieu (from Banking and Finance)
Health: Dave Jones
Transportation: Mike Eng (from Business and Professions)
Judiciary: Mike Feuer
Business and Professions: Mary Hayashi
Governmental Organization: Curren Price
• Banking and Finance: Pedro Nava (from Transportation)

• Lieu was named as the chair of Rules after Bass was elected speaker, but before she was sworn in. Officially, former Speaker Fabian Núñez made the move, though Bass has not changed the appointment. Lieu was replaced as chair of the Banking and Finance Committee by Assemblyman Pedro Nava.

See past related stories:

Bass shuffles more chairs
Bass taps Evans, de León for budget and approps
Torrico is new majority leader
Price to chair GO

Former Assemblyman Joe Canciamilla, D-Pittsburg, who bowed out of a state Senate race earlier this year, has filed paperwork to explore a run for state attorney general in 2010.

Canciamilla said he has "no definitive plans" yet and that any run "hinges entirely on what the current AG decides to do."

The current attorney general, Jerry Brown, has all but said he will run for governor and has recently begun a fundraising push.

"With so much speculation that he is running for governor again, it seemed like a good time to begin to see if there was any interest," Canciamilla said of his would-be attorney general run.

The Pittsburg Democrat, who blazed a moderate path during his six years in Sacramento, starts with one advantage: a load of campaign cash. He had more than $400,000 in the bank as of January.

Canciamilla backed out of a contested Democratic primary for state Senate right before the filing deadline this spring. He would have run against first-term Assemblyman Mark DeSaulnier, D-Concord, who beat Caniamilla's wife in an Assembly campaign in 2006.

Canciamilla said in a statement at the time he hoped to avoid "a bloodbath between two Democrats, which is what this race would have been." The decision came after a meeting with incoming Senate leader Darrell Steinberg, D-Sacramento.

In an interview on Monday, Canciamilla said his potential run for attorney general was "not part of a conversation" with Steinberg.

Canciamilla called the office of the attorney general "one of the two down-ticket offices that actually has some real authority and the ability to make a real impact" in California.

If Brown were to opt out of running for reelection, Canciamilla would be the first - but almost assuredly not the last - Democrat to explore running. No Republican has announced themselves as a candidate, though the 2006 nominee, former Sen. Chuck Poochigian, still has an active campaign account.

As attorney general, Canciamilla said he would focus on getting back "to the basics."

That includes, he said, "relationships with local governments, crime prevention, protecting seniors, reducing the amount of white collar crime," among other priorities. The challenge, he said, is "how we do that with less money and fewer resources."

Here's how Capitol Alert described Canciamilla's tenure in the Assembly back in March:

Canciamilla ruffled many Democratic feathers during his six-year stint in Sacramento, leading the so-called "Mod Squad," a group of business-friendly Assembly Democrats that exerted sway on legislation, particularly environmental bills.

"I have spent my entire adult life in elected office," he said in the posted statement, signaling it was time for him to move on from the "rubber chicken circuit."

Three months later, Canciamilla could be headed back to the circuit after all.

The state Senate has approved legislation giving homeowners facing foreclosure some new rights to deal with lenders.

Wednesday's bipartisan 32-8 vote sent the bill (Senate Bill 1137) by Senate President Pro Tem Don Perata to Gov. Arnold Schwarzenegger's desk, and he indicated he'll sign it.

"We need many tools to help Californians through this housing crisis," Schwarzenegger said in a statement even before the final vote, "and this bipartisan legislation provides one more tool by giving borrowers the critical time needed before a foreclosure begins to work with their lenders and stay in their homes.

"We all benefit when families are able to remain in their homes, so I continue to encourage both borrowers and lenders to communicate and work together because it allows Californians to hold on to the American Dream of owning a home."

Perata's bill contains a number of provisions giving homeowners who face foreclosure more time in which to contact lenders and seek loan modfications and gives local governments more power to fine lenders who allow foreclosed properties to deteriorate.

It's the first in what Democratic leaders say will be a flurry of legislation designed to ease the impacts of widespread foreclosures on homes purchased with subprime, adjustable mortgages. But a conflict between the two legislative houses has arisen on details of what should be done.

A package of Assembly bills was stalled in a Senate committee amid sharp disagreement on details. However, Perata and Assembly Speaker Karen Bass pledged Wednesday that the differences will be quickly resolved.

"I'm very confident we are moving toward resolution," Perata said.

Steve Schmidt, who served as Gov. Arnold Schwarzenegger's campaign manager during his 2006 march to reelection, has a new, expanded role in the presidential campaign of Sen. John McCain.

Schmidt has long served as a top adviser to McCain, but he will now take over the day-to-day operations of the campaign. Rick Davis, the current campaign manager, will focus on fundraising, the selection of a vice presidential nominee and the GOP convention.

Before coming to work for Schwarzenegger, Schmidt worked for Vice President Dick Cheney and was a top communications aide in President Bush's 2004 reelection campaign.

Sources: Washington Post, Politico

Steve Schmidt, bottom right, on the McCain campaign plane in March.
Photo credit: Stephan Savoia, AP

As Gavin Newsom was announcing the start of a potential bid for governor, Los Angeles Mayor Antonio Villaraigosa finished off a fundraising sprint Tuesday night, gathering checks at 12 fundraisers in the past 11 days.

Villaraigosa, who is running for re-election next year, has attended as many as four fundraisers in a single day and collected checks from as far away as Florida in the past two weeks, according to invitations filed with the Los Angeles Ethics Commission.

Villaraigosa doesn't have a challenger to his re-election yet -- and he'd surely like to keep it that way.

"I'm assuming he's doing what he's doing is to keep from having challengers," said Gale Kaufman, a Democratic political consultant in Sacramento.

Villaraigosa campaign aides have told the Los Angeles Times that the mayor expected to raise $1.5 million by the end of June.

Kaufman said "a good war chest" can "show strength so that he keeps challengers out of the race."

So far, wealthy Southern California developer Rick Caruso has flirted publicly with the idea of running but has made no official move. Others, such as former Assembly Speaker Bob Hertzberg, who ran in 2005, dipped their toes in the water and have since backed away.

Villaraigosa has been a rumored candidate for governor in 2010. But Kaufman said, "I don't think you can ever look at what happens now as having anything to do with whether or not he runs for governor."

Still, if Villaraigosa's succeeds in warding off a challenger, he would be "much more comfortable for whatever political future he wants," Kaufman said.

Meanwhile, Attorney General Jerry Brown, another potential Democratic candidate in 2010, reported a big fundraising haul -- $205,000 -- on Sunday, only one day before the end of the fundraising reporting period.

Brown said last summer that "the thought has certainly crossed my mind, but I haven't really come to any conclusion" about running for governor. He served two terms as the state's chief executive, from 1975 to 1983, but that was before term limits.

In a speech before the state Democratic convention in March, Brown stirred the rumor pot again. "I don't do too much these days except sue people," he told the crowd of party activists. "But someday maybe I'll get around to doing more than that, and hopefully you'll help."

Villaraigosa's fundraising swing also made a stop in San Francisco, Newsom's hometown. Newsom took the first step toward running for governor on Tuesday night, opening an exploratory committee.

The S.F. event drew the attention of the San Francisco Chronicle, which reported:

With Newsom considering a run for governor in 2010 and Villaraigosa also seen as a possible contender, observers say tonight's fundraiser could be an indication of the powerful political alliances that will form if the two mayors face off against each other, with some big Northern California names supporting someone other than the hometown candidate.

Four event co-hosts promised to raise at least $10,000 for the mayor's reelection. The hosts included former Assembly Speaker Willie Brown, San Francisco District Attorney Kamala Harris, Assemblywoman Fiona Ma and Sacramento lobbyist Darius Anderson.

Check out a full calendar of Villaraigosa's fundraisers here. Also, Capitol Alert links to the informative write-ups from the Times' David Zahniser, who connected the dots between the hosts of the events and their business before City Hall.

Photo Credit: Brian Bear, Sacramento Bee, January 2008

Here is a list of Los Angeles Mayor Antonio Villaraigosa's fundraisers in the past two weeks. The invitations were filed with the Los Angeles City Ethics Commission.

We've also included links and small snippet of write-ups by the Los Angeles Times' David Zahniser about the connections between particular fundraiser hosts and business they have before City Hall.

June 21, Saturday

Hosts: Benny and Juliette Klepach, Bill Rubin
Location: Indian Creek Island, Miami
Time: 6:30-8:00 p.m.
Price: $1,000 per person

June 23, Monday

Hosts: Scarlette Eum, president, Korean American Federation of Los Angeles; Chang Y. Lee, president, Korean American Chamber of Commerce; Alexander Hugh, CEO, CIC Group
Location: Los Angeles
Time: 6:30 p.m.
Price: $1,000 per person

Zahniser's take: Perhaps the most noteworthy co-host is Alexander Hugh, chief executive of the real estate development company CIC Group -- a firm that received permission from City Hall last year to build a condominium hotel with 16- and 21-story towers at 7th Street and Hobart Boulevard.

June 25, Wednesday

Hosts: David Chang, Kerman Maddox
Location: Los Angeles
Time: 12 p.m.
Price: $1,000 per person

Hosts: Former Assembly Speaker Willie Brown, District Attorney Kamala Harris, Assemblywoman Fiona Ma, Darius Anderson
Location: San Francisco
Time: 6-8 p.m.
Price: Co-chairs promise to raise $10,000. Hosts promise to raise $5,000. Guests - $1,000 per person.

Zahniser's take: The fourth and final co-chair on the invitation is Darius Anderson, president of the lobbying and government relations firm Platinum Advisers. Although Platinum is not a registered lobbyist in the city of Los Angeles, it has 61 clients in Sacramento, according to the secretary of state's website. Those clients include AT&T, Lennar Homes, the Shingle Springs Band of Miwok Indians and the city of Upland...

Those clients might not need any help from Mayor Villaraigosa in 2009. But Gov. Villaraigosa in 2010? You never know.

June 27, Friday

Host: Larry Gonzalez
Co-Hosts: Monica Gil, David Lizarraga, Ozzie Lopez, Adriana Martinez
Location: Pasadena
Time: 7-9 p.m.
Price: $1,000, VIP; $500, guest

Zahniser's take: The host will be Larry Gonzalez, president of All Access Entertainment, a Los Angeles-based company devoted to celebrating "Latino holidays and the Hispanic culture of Southern California," according to its website.

All Access runs such city-sponsored events as Fiesta Broadway, a cultural festival thrown each year in downtown Los Angeles, and El Grito, a Spanish-language concert held annually outside Los Angeles City Hall to commemorate the Mexican War of Independence. Both have received financial help from the city for years.

June 28, Saturday

Hosts: Jeremy Bernard, David Bohnett, Bruce Cohen, Hon. John Duran, Shelley Freeman, Rufus Gifford, John Gile, Michael Keegan, Torie Osborn, Dana Perlman, Tim Robinson, Doug Spearman, Curt Shepard, Wes Walraven
Location: Los Angeles
Time: 11 a.m.
Price: $1,000 per person

Zahniser's take: On Saturday morning, Villaraigosa looked for money from prominent gay and lesbian leaders -- including Bruce Cohen, the Hollywood producer whose marriage to art consultant Gabriel Catone was officiated by the mayor last week.

Hosts: James Aguirre, Tom Calderon, Andres Irlando, Esperanza Montezuma, Alex Nogales, Frank Quevedo, Jesus Quinones, Joseph Quinonez, Chirag Shah, Luis Valenzuela
Sponsors: Dan Falcon, James Garrison, John Guerra, Christine Robert, Sandra Figueroa-Villa
Location: Los Angeles
Time: 2:30-4:30 p.m.
Price: $1,000, host; $500, sponsor

Zahniser's take: Christine Robert, whose consulting firm the Robert Group has worked for such agencies as Los Angeles World Airports, the Board of Public Works and the Los Angeles County Metropolitan Transportation Authority, where Villaraigosa will become board chairman this week. The Robert Group received a $650,000 contract from the MTA last year to work on the Westside subway extension, a top priority of Villaraigosa's.

June 29, Sunday

Hosts: Carol and Frank Biondi
Location: Los Angeles
Time: 11:30 a.m. to 1:00 p.m.
Price: $1,000 per person

Hosts: Simon and Daniel Mani
Location: Beverly Hills
Time: 1:30 p.m.
Price: $1,000 per person; $2,000 per couple

Zahniser's take: Simon and Daniel Mani, whose real estate company has sued Los Angeles over its approval of a development project in downtown Los Angeles. The city's handling of that lawsuit was discussed much of last year by Villaraigosa's appointees at the Community Redevelopment Agency.

Hosts: Sim and Debra Farar
Location: Los Angeles
Time: 4 p.m.
Price: $1,000 per person

Hosts: The Persian American Community and Friends of the Mayor
Location: Beverly Hills
Time: 6-8 p.m.
Price: $1,000 per person; $2,000 per couple

July 1, Tuesday

Hosts: Andy and Ernie Camacho
Location: Los Angeles
Time: 5:30 p.m. to 7:00 p.m.
Price: $1,000 per person

Zahniser reports: Camacho's has concessions at Los Angeles International Airport and Ontario/LA International Airport - facilities overseen by Villaraigosa's appointees on the Board of Airport Commissioners. Concessions for the Camacho's two LAX restaurants are set to expire in 2010, according to the airport agency.

Andy Camacho already co-hosted a VIllaraigosa fundraiser on June 24, according to another invitation. On that same day, the Los Angeles City Council voted to award a five-year lease to Camacho's. Inc. to operate a 3,460 square foot cafe and store in a building at the El Pueblo monument that surrounds Olvera Street.

The state Senate has released its plan for floor sessions in the first half of July. Legislative recess is scheduled to begin July 3 upon passage of the budget.

The state Senate is to meet at least every fourth day. That allows lawmakers to keep collecting $170 daily "per diem" payments for living and travel expenses.

Wednesday, July 2
1:30 p.m. Floor Session

Thursday, July 3
9 a.m. Floor Session

Friday, July 4
HOLIDAY

Monday, July 7
10 a.m. Appropriations
2 p.m. Floor Session

Thursday, July 10
9 a.m. Floor Session

Monday, July 14
10 a.m. Appropriations
2 p.m. Floor Session

Kris Perry, executive director of First 5 California, has released the following statement in response to legislative talk of tapping the commission's funds, filled by a 50-cent cigarette tax that voters passed under Proposition 10:

First 5 California shares the concern of the Governor, the Legislature and all Californians about the state's budget crisis and how it could hurt our youngest children.

To address these competing priorities, First 5 is looking for additional ways to help the state during this fiscal crisis that upholds its voter mandate and sustains critical First 5 services.

San Francisco Mayor Gavin Newsom took the first steps Tuesday to run for governor in 2010.

The Democratic mayor launched an exploratory committee to become California's chief executive. The full story is on sacbee.com.

Former Speaker Fabian Núñez is giving new meaning to his own title.

Núñez, usually a loquacious lawmaker, had surgery to remove a benign tumor from his vocal cords Thursday and has resorted to hand gestures and notebooks for communication. When asked by a reporter what caused his speech ailment, Núñez wrote "your fault" in the reporter's notebook then cracked a smile.

Núñez, who won't be able to talk for three weeks, is expected to make a full recovery.

The procedure was similar to the one that former Gov. Pete Wilson underwent in 1995 to remove a benign tumor from his vocal cords. Wilson ended up having two more surgeries to repair a crackling, inconsistent speaking voice.