Former Assembly speaker's son arrested in stabbing -- The 19-year-old son of former Assembly Speaker Fabian Núñez was arrested along with three others in Sacramento County today on suspicion of homicide in the Oct. 4 stabbing of a 22-year-old college student in San Diego. Stan Oklobdzija in the Sacramento Bee Tony Perry and Jean Merl in the Los Angeles Times AP -- 12/2/08

Judge leans toward early release of California inmates -- A federal judge on Tuesday said releasing inmates early may be the best remaining option for ensuring that California prisoners receive adequate medical care. The comments came during a trial focused on overcrowding in the state's 33 adult prisons, which inmates' attorneys say is so severe that it leads to medical neglect and malfeasance. DON THOMPSON AP -- 12/2/08

Inland car dealer agrees to pay $150,000 to settle campaign-finance complaint -- Inland car dealer Mark A. Leggio, a major donor to Republican candidates, has agreed to pay the state $150,000 to settle a "repeated pattern of violations" of campaign-finance laws. The agreement with the state Fair Political Practices Commission does not address a criminal case in San Bernardino County alleging that Leggio, of Upland, broke campaign-finance rules and other laws. JIM MILLER and MICHELLE DeARMOND in the Riverside Press -- 12/2/08

California broadcaster to build U.S. Latin network -- Liberman Broadcasting has emerged as a scrappy competitor to its rivals Univision and Telemundo, producing 56 hours of original programing in its Burbank, California, studios every week. Ayala Ben-Yehuda Reuters -- 12/2/08

Obama asks governors to help craft economic recovery -- Executives of 48 states gather, many with stories of budget cuts and shortfalls. The president-elect promises to seek their counsel and be their 'partner in Washington.' Christi Parsons in the Los Angeles Times BRIAN KNOWLTON in the New York Times -- 12/2/08

Forget bailouts: Governors urge Obama to spend on infrastructure -- The nation's governors got down to work Tuesday, taking their case to the president-elect for a $136 billion infrastructure spending program that they hope will funnel immediate government money toward bridges, roads and rail lines in the hopes of creating jobs and spurring the economy out of recession. Erika Bolstad in the Sacramento Bee -- 12/2/08

Judge shoots down legal challenge to BART-to-San-Jose -- A San Francisco judge Tuesday denied an electoral challenge to the contested Measure B, a ballot initiative that will tax Silicon Valley residents for a BART extension to the South Bay. Karen de Sá in the San Jose Mercury -- 12/2/08

AOL Veteran Seeks Billions to Make Run for Yahoo -- Former AOL chief Jonathan Miller is trying to raise money to purchase all or part of Yahoo Inc., according to people familiar with the matter, a long-shot deal that signals that investors' interest in the troubled Internet property has yet to subside. JESSICA E. VASCELLARO in the Wall Street Journal -- 12/2/08

San Diego's economic indicators point to continuing recession -- San Diego County's index of leading economic indicators fell sharply in October, offering new evidence that the recession will last through at least the first half of next year. The index – released Tuesday by the Burnham-Moores Center for Real Estate at the University of San Diego – plummeted 2.3 percent in October, which wasthe biggest monthly decline in the index's 17-year history. Dean Calbreath in the San Diego Union-Trib -- 12/2/08

Fonda, Nicholson among latest famous Californians -- Hollywood stars Jane Fonda and Jack Nicholson are among the 2008 inductees into the California Hall of Fame. First Lady Maria Shriver started the program to honor artists, sports figures and others who've helped shape the state. AP -- 12/2/08

Falling revenues hit state lottery -- Ticket sales by the California lottery are off about 10 percent compared to a year ago, a drop lottery officials are pinning on a bad economy. But California Lottery officials say they don't think the lagging sales will interfere with efforts to modernize the lottery and revamp it to give more revenue to the state. Malcolm Maclachlan in Capitol Weekly -- 12/2/08

Record 3.1 million California kids getting school meals -- The economic downturn is hitting California students as more of them turn to a program that provides free or reduced-price lunches for poor families. JULIET WILLIAMS AP -- 12/2/08

Panelist's absence may impede Brewer ruling -- The schools chief is facing increasing pressure to resign. The absence of board member Marguerite Poindexter LaMotte may complicate the deliberations. David Zahniser and Howard Blume in the Los Angeles Times -- 12/2/08

The 45 Day, and $2 Billion, Budget Gamble -- That well-reported $11.2 billion gap between state government's revenues and expenditures is expected to grow by $2 billion without legislative action over the next seven weeks. John Myers Capitol Notes weblog -- 12/2/08

Legislators push resolution opposing Prop. 8 -- In the latest sign the battle over same-sex marriage is far from over, the Legislature's gay and lesbian caucus and Senate President Pro Tem Darrell Steinberg today introduced a resolution opposing Proposition 8. Aurelio Rojas in the Sacramento Bee -- 12/2/08

Mixed day for rookies in Legislature -- Amid a deepening budget crisis, state lawmakers celebrated Monday as members of the Assembly and the state Senate were sworn in for new terms in office. Several former members of the Assembly moved across the Capitol to the Senate, while a few moved the other way, and about two dozen lawmakers took their seats for the first time. Wyatt Buchanan in the San Francisco Chronicle Jim Sanders in the Sacramento Bee -- 12/2/08

Walters: New legislative lineup may crack stalemate -- The Legislature reconvened Monday with a couple of dozen truly new members – not counting the retreads and those shifting from one house to the other – and launched its biennial session with the usual celebratory rituals. Dan Walters in the Sacramento Bee -- 12/2/08

Schwarzenegger declares fiscal emergency -- With time and money running out for California, Gov. Arnold Schwarzenegger declared a fiscal emergency Monday and called legislators into a new special session that won't end until they agree on a way to trim the state's $11.2 billion budget deficit. John Wildermuth, Wyatt Buchanan in the San Francisco Chronicle Kevin Yamamura in the Sacramento Bee Jordan Rau and Patrick McGreevy in the Los Angeles Times -- 12/2/08

Governor to ask Obama for public-works money -- A day after declaring a fiscal crisis in California, Gov. Arnold Schwarzenegger will be in Philadelphia today to deliver a face-to-face plea to President-elect Barack Obama for more public-works money to help break the recession's grip on states. Michael Gardner and James P. Sweeney in the San Diego Union-Trib -- 12/2/08

Schrag: How to close the state's deficit without taxes -- There's long been talk about improving California's public finances by going to a two-year budget process. Well, we've finally managed to get there, not by intent but by sheer negligence and irresponsibility. Peter Schrag in the Sacramento Bee -- 12/2/08

San Francisco jury clears Chevron of protest shootings -- A federal jury in San Francisco cleared Chevron Corp. of wrongdoing Monday in the shootings of Nigerian villagers who occupied an offshore barge in 1998 to protest the company's hiring and environmental policies. Bob Egelko in the San Francisco Chronicle Richard C. Paddock in the Los Angeles Times -- 12/2/08

Núñez joins board of workers' comp insurer -- Former Assembly Speaker Fabian Núñez has taken a lucrative seat on the board of directors for a workers' compensation insurer after helping broker a 2004 deal that benefited the industry. Shane Goldmacher in the Sacramento Bee -- 12/2/08

L.A. Mayor Villaraigosa: I'm not joining Obama cabinet -- Villaraigosa said he had a "conversation" with Obama in mid-November about joining the new Democratic administration, but told the incoming president that he would stay in Los Angeles to focus on his reelection campaign and ongoing efforts to address the city's financial troubles and other pressing issues. Phil Willon in the Los Angeles Times -- 12/2/08

State carves into funds that upgrade communities -- Upgraded roads, new sidewalks, more-affordable housing and a host of other neighborhood improvements across the Inland region could be in jeopardy, thanks to California's budget woes. DUANE W. GANG in the Riverside Press -- 12/2/08

U.S. recession could last into 2010 -- The economy's yearlong downturn, officially declared a recession Monday, could last well into next year or even beyond, challenging the government to devise new responses as traditional methods show limited results. Maura Reynolds in the Los Angeles Times Neil Irwin in the Washington Post -- 12/2/08

Sacramento-area merchants pleased with weekend traffic -- It may not have been record-breaking, but the weekend's retail activity appears to have been better than many expected. Jim Downing in the Sacramento Bee -- 12/2/08

Property tax appeals on the rise -- Property owners – facing rough economic times and a prolonged housing slump – have been flooding area assessors' offices with appeals in the hope of getting their tax bills lowered. Robert Lewis in the Sacramento Bee -- 12/2/08

Pender: Retirement distribution rule changes proposed -- If you are 70 1/2 or older, should you take the minimum required distribution from your retirement accounts this year? A federal law requires anyone older than 70 1/2 to withdraw a small percentage from their individual retirement accounts, 401(k) plans and other tax-sheltered accounts each year. Kathleen Pender in the San Francisco Chronicle -- 12/2/08

Feds dropped home-loan crackdown, records show -- The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents. Matt Apuzzo AP -- 12/2/08

Real estate a tough sell in troubled economy -- The severe lack of accessible capital has brought the Bay Area real estate sector to a near dead stop, upending deals, stalling development and scuttling sales, builders and brokers say. James Temple in the San Francisco Chronicle -- 12/2/08

Concerns over Bay Area firms' ties to Mumbai -- Apart from the profound impact on the Bay Area's estimated 250,000 Indian Americans, "India's 9/11" has raised concerns about the region's extensive business and high-tech ties there. Andrew S. Ross in the San Francisco Chronicle -- 12/2/08

Forget Citigroup, Puppet Show Needs a Bailout -- There are many ways to measure California’s tanking economy: an 8.2 percent unemployment rate; a multibillion-dollar state budget gap; threatened endowments of the city’s museums, causing some cultural institutions to nearly default on mortgages; and the continued weakening of the Hollywood studio system. But the meltdown of the marionettes may say it all. JENNIFER STEINHAUER in the New York Times -- 12/2/08

Coping with life after layoffs -- One month after her layoff, Kathi Finley still cries at the commercials for Mervyn's going-out-of-business sale. Finley, of Castro Valley, worked for the Hayward-based chain for 34 years. She was 18 when she started working there. Now she has a son she's putting through college, and no job. Jessica Yadegaran in the Contra Costa Times -- 12/2/08

Valley car dealers have lots on the line -- Central San Joaquin Valley auto dealers say that while they're doing better than counterparts in some areas of the country, things could change if Congress doesn't approve a bailout. Tim Sheehan and Bethany Clough in the Fresno Bee -- 12/2/08

Civic leaders press Brewer to leave L.A. Unified -- Key civic leaders have lost confidence in L.A. School Supt. David L. Brewer and are quietly pressing for him to leave his $300,000-a-year position as head of the nation's second-largest school system, The Times has learned. Howard Blume and Jason Song in the Los Angeles Times -- 12/2/08

Group wants chemical-filled farmland retired -- The giant state and federal pumps in the Sacramento-San Joaquin Delta that funnel water to 25 million Californians should be shut down until certain Central Valley farmers retire hundreds of thousands of acres of chemical-laden farmland, according to a lawsuit filed today by a state water watchdog. Kelly Zito in the San Francisco Chronicle Mike Taugher in the Contra Costa Times -- 12/2/08

San Francisco fighting to collect fines over billboards -- San Francisco's yearlong campaign to crack down on illegal billboards and collect large fines is running up against lawsuits brought by advertising companies challenging the validity of city sign restrictions. Robert Selna in the San Francisco Chronicle -- 12/2/08

Water consumption down -- Despite a warm October with no rain, Los Angeles residents cut their water use by 7 percent and government customers reduced theirs by 11.4 percent under a new water conservation measure that took effect in late summer. Rick Orlov in the Los Angeles Daily News -- 12/2/08

Edison flips switch on Fontana solar project -- Thanks to more than 33,000 solar panels soaking up sunlight on top of a warehouse in Fontana, Southern California Edison is now reaping 2 extra megawatts of juice on its electricity grid. Matt Wryein the Inland Daily Bulletin -- 12/2/08

Broader medical refusal rule may go far beyond abortion -- The Bush administration plans a new 'right of conscience' rule that would allow more workers to refuse more procedures. Critics say it could apply to artificial insemination and birth control. David G. Savage in the Los Angeles Times -- 12/2/08

Ex-UCLA worker says she leaked celebs' files -- A former employee of UCLA Medical Center pleaded guilty yesterday to selling information from the medical records of celebrities and high-profile patients, including Britney Spears and Farrah Fawcett, to the National Enquirer. Shaya Tayefe Mohajer AP -- 12/2/08

Supreme Court refuses to hear case on seized medical marijuana -- More than three years after Garden Grove police seized a small amount of marijuana from a chronic pain patient, the U.S. Supreme Court on Monday refused to consider the city's argument -- which divided California's major law enforcement organizations -- that it should not have to give the drugs back. Christopher Goffard in the Los Angeles Times -- 12/2/08

Ridley-Thomas to make reopening King-Harbor Hospital top priority -- New L.A. County Supervisor Mark Ridley-Thomas says he will introduce a proposal to reopen King-Harbor Hospital at Tuesday's Board Of Supervisors meeting and ask that it be discussed next week. Molly Hennessy-Fiske in the Los Angeles Times -- 12/2/08

American Musical Theatre of San Jose closes down -- The curtain fell Monday on one of the South Bay's longest-running cultural institutions, as American Musical Theatre of San Jose announced it was ceasing operations and filing for Chapter 7 bankruptcy. Shay Quillen in the San Jose Mercury -- 12/2/08

Nevius: Newsom's virtual speech draws mixed reviews -- When San Francisco Mayor Gavin Newsom posted an epic State of the City speech on YouTube on Monday, reaction was mixed. C.W. Nevius in the San Francisco Chronicle -- 12/2/08

Two worlds collide as lawyer fights for inmate husband -- Pamela Griffin battles to get her husband out of the isolation cell that grinds him down. He claims his gang days are over. The government says he's still calling the shots. Joe Mozingo in the Los Angeles Times -- 12/2/08

Carona's mistress is seeking a separate trial -- Debra Hoffman's attorney says her client will be unable to get a fair shake if she can't call the former sheriff to testify in their corruption trial. The judge has yet to rule on the request. Christine Hanley in the Los Angeles Times -- 12/2/08

Police plan raises fears on Westside -- A plan to slash the number of Los Angeles police officers who patrol some Westside neighborhoods has reignited long-standing political tensions over the priority the department gives to nonviolent property crimes in affluent neighborhoods. Richard Winton and Martha Groves in the Los Angeles Times -- 12/2/08

Measure R wins while anti-gang parcel tax loses -- After final vote tallies, the half-percent sales tax to raise $30 billion to $40 billion for Los Angeles County transportation projects won by a narrow margin, while the city's gang tax barely missed the required two-thirds majority. Sue Doyle in the Los Angeles Daily News -- 12/2/08

Priest's stand in spotlight -- CNN called Bishop Stephen Blaire of the Stockton Diocese, requesting an interview Monday. St. Joseph's Catholic Church in Modesto had all four of its receptionists answering calls throughout the day. The church even had to add a special link to its Web site to accommodate the surge of e-mail comments. Sue Nowicki in the Modesto Bee -- 12/2/08