Race issue moves to center of campaign -- Given the historic presence of the nation's first major-party African-American presidential nominee, it was likely inevitable. But now the combustible issue of Barack Obama's racial identity has been thrust squarely into the heated political battle of the 2008 race. Obama Wednesday warned voters that John McCain or his allies would try to "scare" them with his race, and McCain campaign manager Rick Davis responded furiously on Thursday, accusing Obama of playing the race card. JONATHAN MARTIN & BEN SMITH Politico -- 7/31/08

Guv’s Pay Decision: Who, How, Ever? -- Governor Schwarzenegger’s signing of an executive order to delay full paychecks for tens of thousands of state workers, and to layoff temporary workers is now… old news. But there’s more to the story. John Myers Capitol Notes weblog -- 7/31/08

Schwarzenegger backs McCain while praising Obama -- How many governors endorse one candidate for president and then even before the election leave the door open to working in his opponent's administration? One so far: Arnold Schwarzenegger. JULIET WILLIAMS AP -- 7/31/08

Garamendi is first to jump into the governor's race -- Hoping that his third time will be the charm, Lt. Gov. John Garamendi today became the first Democrat to jump into the 2010 governor's race, vowing to provide a new vision for the state. John Wildermuth in the San Francisco Chronicle -- 7/31/08

NBC Hires Luke Russert as a Correspondent -- The younger Mr. Russert’s first assignment will be at the Democratic National Convention in Denver at the end of August and at the Republican National Convention in St. Paul at the beginning of September. A 2008 Boston College graduate, he will focus on youth issues for NBC. Brian Stelter in the New York Times -- 7/31/08

New ''Celeb'' Ad -- Ironic, Mr. Schmidt? -- That controversial new ad for John McCain called ''Celeb,'' uses images of Britney Spears and Paris Hilton to jab at Democrat Barack Obama for being just too much of a celebrity -- and is being credited to the saavy Steve Schmidt, John McCain's chief strategist. But didn't Schmidt -- whose spot asks whether voters can trust such a star to govern -- manage that successful effort to re-elect the world's biggest celebrity, the action hero governor of California, Arnold Schwarzenegger? Carla Marinucci Chronicle Politics Weblog -- 7/31/08

Schwarzenegger orders cuts amid fiscal crisis -- Gov. Arnold Schwarzenegger has signed an executive order that eliminates thousands of state positions and cuts the pay of government employees to minimum wage. He says the order is needed to avoid a "full-blown" fiscal crisis in California. DON THOMPSON AP -- 7/31/08

Governor Gov. Arnold Schwarzenegger has signed the executive order to cut state workers salaries. -- 7/31/08

US judge: White House aides can be subpoenaed -- President Bush's top advisers are not immune from congressional subpoenas, a federal judge ruled Thursday in an unprecedented dispute between the two political branches. MATT APUZZO AP -- 7/31/08

Slim majority supports offshore drilling -- As gas prices remain above $4 a gallon in most of the Bay Area, Californians are more open to the idea of offshore drilling for oil than they have been in the past. A slim majority — 51 percent to 45 percent — approve of offshore drilling, according to a survey by the Public Policy Institute of California. It's the first time since the institute began asking the question in 2003 that more residents favor drilling than oppose it. A year ago, only 41 percent favored drilling. Steven Harmon in the Contra Costa Times Jane Kay in the San Francisco Chronicle -- 7/31/08

Feds press Congress to lift oil drilling ban -- The U.S. Interior Department ratcheted up the pressure on Congress Wednesday to open more of the country's coastline to offshore oil drilling, a move petroleum companies have sought for decades. David R. Baker in the San Francisco Chronicle -- 7/31/08

Court won't halt Medi-Cal cuts -- While acknowledging cuts to the state's Medi-Cal program will make it harder for the poor to get care, a state court refused to stop a 10 percent reduction in the program's fees to doctors, dentists and other health care professionals that went into effect July 1. A Los Angeles Superior Court judge late Tuesday ruled against a preliminary injunction sought by a group of health care providers to halt the fee cuts. Victoria Colliver in the San Francisco Chronicle -- 7/31/08

Q&A: If pay cut is ordered, state treasurer says he must comply -- Treasurer Bill Lockyer, who acts as the state's banker, met with members of The Bee Capitol Bureau on Wednesday to discuss the tardy budget and the governor's plan to cut state worker pay to the minimum wage. Judy Lin in the Sacramento Bee -- 7/31/08

Threat to cut pay tarnishes state's image as employer -- Add this to the list of issues vexing California's state government: It's getting a reputation as a lousy boss. Certainly the pay and benefits are pretty good if you can stick with it long enough. Civil service can be a noble calling. Where would we be without state-employed firefighters this summer? Jon Ortiz in the Sacramento Bee -- 7/31/08

Perata solicits funds for nonprofit that backs his courthouse construction bill -- Senate President Pro Tem Don Perata has solicited at least $200,000 this year from political interest groups for a nonprofit foundation that promotes and rallies support for one of his bills. The arrangement, apparently legal, allows the Senate leader to solicit unlimited funds for his own political agenda without having to detail how the money is spent. Jim Sanders in the Sacramento Bee -- 7/31/08

California voters share blame for chronic budget impasses -- California voters could hardly be more disgusted at government's chronic inability to solve state budget woes effectively and on time. Only 4 percent, according to a recent poll, have a "great deal" of confidence that lawmakers can do the right thing on the overdue spending plan. Dan Smith in the Sacramento Bee -- 7/31/08

The annual budget paradox: taxes hit Dems, cuts hit Reeps -- One knock against politicians is that they're always trying to bring pork back to their districts. But when it comes to California's annual Kabuki budget dance, a new pattern emerges: Republicans try to cut spending-often even money likely to flow to their own districts-while Democrats try to pass taxes that would take a particular bite out of some of their own constituents. Budget leaders in both parties say that's exactly what the voters elected them to do. Malcolm Maclachlan in Capitol Weekly -- 7/31/08

Skelton: Schwarzenegger should try actual governing instead of showboating -- Reading what Gov. Arnold Schwarzenegger had to say at yet another wildfire photo-op assured me that it was safe to go on vacation for two weeks. There'd be no interruption by Capitol politicians agreeing to a budget deal. George Skelton in the Los Angeles Times -- 7/31/08

Ballot initiatives embrace new campaign tools -- The Internet, as a political tool, has been used with mixed results. While it has catapulted fundraising efforts of presidential candidates like Howard Dean and Barack Obama, and helped campaigns harness thousands of small donors, many lower-profile campaigns still struggle with how the Web can help their election prospects. Anthony York in Capitol Weekly -- 7/31/08

Voter-approved ballot initiatives have limited California budget options -- Here is a rundown of budget-related ballot initiatives: The item is in the Sacramento Bee -- 7/31/08

Schrag: Governor runs low on blustery budget tricks -- Arnold Schwarzenegger's professed intention to reduce the pay of 200,000 state workers to the federal minimum wage until there's a new budget doesn't quite fall into the "stop me before I kill again" class, but it comes close. Peter Schrag in the Sacramento Bee -- 7/31/08

Same-sex marriage foes form ballot campaign for “bigots” -- Proposition 8, the initiative to ban same-sex marriage in California, has been so divisive throughout the state that it seems to even be splitting individuals in half. For the second time in a month, Capitol Weekly has found a case of the same individual forming committees on both sides of the gay marriage debate. Andrea Wieland in Capitol Weekly -- 7/31/08

Federal media protection law stalls in Senate -- The prospect of congressional approval of a federal "media shield" law this year dimmed Wednesday when Senate Republicans blocked legislation that would protect journalists from being forced to reveal confidential sources. Jennifer A. Dlouhy in the San Francisco Chronicle -- 7/31/08

Minutemen protest San Francisco' s sanctuary policy -- About a dozen members of the Minutemen, a group that patrols the U.S.-Mexican border to keep illegal immigrants out, stood on the San Francisco City Hall steps Wednesday to decry the city's sanctuary policy and demand that Mayor Gavin Newsom resign. Heather Knight in the San Francisco Chronicle -- 7/31/08

San Francisco supes panel OKs limits on overtime -- A San Francisco firefighter employed in the department's equipment maintenance bureau worked 19 consecutive 24-hour shifts in April and May of this year, according to documents obtained by The Chronicle. Alan Harvey, who is one of the city's top 10 overtime earners so far this year, was paid more than $66,000 in overtime in the first six months of 2008 working in the bureau that maintains fire engines and other department apparatus. Wyatt Buchanan in the San Francisco Chronicle -- 7/31/08

Bill would require paid sick days for most -- As many as 5.4 million working Californians don't get any paid sick days - and they tend to be both sicker and poorer than employees who do receive sick leave, according to a report released Wednesday. Ilana DeBare in the San Francisco Chronicle -- 7/31/08

Soboba tribal chairman vows to stop Riverside County deputies at reservation gate -- Despite the threat of arrest and possible closure of their casino, leaders of the Soboba Band of Luiseño Indians said Wednesday that they would continue stopping law enforcement officers at the gates of their reservation unless they were responding to an emergency. David Kelly in the Los Angeles Times -- 7/31/08

Is U.S. losing its appeal for illegal immigrants? -- With a stagnating economy and hundreds of miles of new fences along the Mexican border, the United States - and California - may have become a less inviting destination for illegal immigrants from Latin America. Two key signals - an unprecedented slowdown in money sent by immigrants back to Mexico, and a new report that claims the nation's illegal immigrant population has dropped significantly since last summer - indicate a possible change. Mike Swift in the San Jose Mercury -- 7/31/08

Political ads hit MTV, Comedy Central -- A national political ad appeared on Comedy Central TV for the first time Wednesday night. Why hasn't that happened before? Because nobody thought voters were watching. Joe Garofoli in the San Francisco Chronicle -- 7/31/08

Obama emerges as major campaign issue -- for both candidates -- A McCain ad likening Obama to pop culture stars illustrates the rivals' focus on defining the Democrat, a relative newcomer. Experts say both campaigns' tactics pose risks. Bob Drogin and Peter Nicholas in the Los Angeles Times -- 7/31/08

As Aides Map Aggressive Race, McCain Often Steers Off Course -- Sen. John McCain last week delivered one of his sharpest critiques yet of Sen. Barack Obama's Iraq policies, carefully reading a prepared speech that accused his Democratic rival of failing the commander-in-chief test and promoting ideas that would force American troops to "retreat under fire." Juliet Eilperin and Robert Barnes in the Washington Post -- 7/31/08

GOP's celeb-Obama message gains traction -- Barack Obama’s critics laid down the foundations of the strategy months ago: The Republican National Committee started the “Audacity Watch” back in April, and Karl Rove later fueled the attack by describing the first-term Illinois senator as “coolly arrogant.” CARRIE BUDOFF BROWN Politico -- 7/31/08

Lunch money going online at Sacramento-area schools -- But starting this year in Elk Grove, in a trend spreading throughout the region, parents have a new option for making sure their children get fed at noontime: They can prepay online through a service called myLunchMoney.com. Instead of sending checks or cash to school, they can use debit or credit cards to make payments, and monitor online when accounts need replenishing. Students punch in personal identification numbers to trigger food purchases. Deb Kollars in the Sacramento Bee -- 7/31/08

Get San Francisco workers out of cars -- Businesses with more than 20 employees working in San Francisco would be required to help their workers ditch their cars and commute to work on transit or in vanpools under a proposal being considered by city officials. The goal of the plan, which would be the first in the nation, is to cut greenhouse gas emissions and improve air quality by getting more people out of polluting cars. Rachel Gordon in the San Francisco Chronicle -- 7/31/08

Californians fight cost by reducing their driving -- As gasoline prices climbed in April, Californians continued a trend of using less gasoline, according to figures released Wednesday. The California Board of Equalization said 2.2 percent less gasoline was used in the state in April than in the same month in 2007. Mark Glover in the Sacramento Bee -- 7/31/08

Planned suit would target ships' and planes' pollution -- California, New York City, three other states and some environmental groups plan to file notice today that they'll sue the Environmental Protection Agency to push it to regulate pollution from ocean ships and aircraft causing global warming. The item is in the Sacramento Bee -- 7/31/08

Judge's ruling throws Southern California power plant plans into disarray -- Does Southern California need a dozen or so new gas-fired power plants -- and if it does, can it build them? No one seems to know for sure. Margot Roosevelt in the Los Angeles Times -- 7/31/08

Regulators set special inspection of Edison's San Onofre nuclear plant -- Regulators are launching a special inspection at Southern California Edison's San Onofre nuclear plant to make sure the utility fixed electrical problems with crucial backup power systems, the Nuclear Regulatory Commission said Wednesday. The visit next week by a three-person team marks the third special inspection in the last 12 months for the coastal facility near San Clemente. Elizabeth Douglass in the Los Angeles Times -- 7/31/08

Budget mess leaves rural hospitals dry -- Small rural hospitals are scrambling to get unprecedented emergency loans as California's monthlong budget crisis deepens. Gov. Arnold Schwarzenegger is expected to lay off up to 22,000 temporary and part-time workers today and trigger a legal clash with state Controller John Chiang by trying to slash the pay of 200,000 state workers. Ed Mendel in the San Diego Union-Trib -- 7/31/08

Lee backs bill to ease pot laws -- Two Bay Area congresswomen joined a half-dozen fellow House members Wednesday in proposing to end federal prosecution for marijuana possession. The proposal, unveiled at a Washington, D.C., news conference, would eliminate federal criminal penalties for adults who possess up to 100 grams of marijuana - about 3.5 ounces - or give an ounce of pot to someone else without charge. Bob Egelko in the San Francisco Chronicle -- 7/31/08

Kevin Johnson gets up to speed in briefings with Sacramento officials -- Call it the education of Mr. Johnson. Kevin Johnson, hoping to oust Sacramento Mayor Heather Fargo in the November election, is receiving a series of briefings from high-level city officials on the inner workings of their bureaucracy. City Manager Ray Kerridge arranged the meetings at Johnson's request. Mary Lynne Vellinga in the Sacramento Bee -- 7/31/08

New California graffiti law: Clean it up and keep it clean -- Gov. Schwarzenegger signs a law sponsored by the city of L.A. It requires convicted vandals to remove their scrawls and keep walls clean for a year. Patrick McGreevy in the Los Angeles Times -- 7/31/08