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The AM Alert

With less than a week before the new fiscal year begins, prospects appear dim for an on-time budget. Gov. Arnold Schwarzenegger said as much last week, but legislative budget negotiators will continue to work through the issues today.

The governor is off to Europe for a two-day trip, meeting with French President Nicolas Sarkozy and short-timer British Prime Minister Tony Blair.

In a matter not necessarily related to the budget talks or the Governor's Travels, state Superintendent of Public Instruction Jack O'Connell holds an L.A. press conference to tell parents how to keep children engaged in their work during the summer.

Paris Hilton is scheduled to get out of jail, but Sen. Carole Migden and Assemblyman Jared Huffman are going to prison. They'll appear at a press conference outside of San Quentin to tout legislation that would audit death row housing.

It's a day off -- sort of -- for a handful of Democratic Assembly and Senate staff members who "volunteered" to take a vacation day to campaign in the 37th Congressional District. Assemblywoman Laura Richardson is facing state Sen. Jenny Oropeza, among others, in Tuesday's special election for the seat left vacant by the death of Democratic Rep. Juanita Millender-McDonald.

Committee action includes an Assembly Transportation hearing for Sen. Gil Cedillo's SB 60, another attempt to allow undocumented immigrants to apply for state driver's licenses.

The 3rd District Court of Appeals in Sacramento will hear arguments at 9 a.m. over the state's approval of $560-million in pension obligation bonds in 2004. Opponents argue --- and a Sacramento Superior Court judge agreed --- that the approval was unconstitutional because the bonds were never ratified by voters.