California may delay tax refunds amid budget impasse -- With Gov. Arnold Schwarzenegger's veto of Democrats' $18-billion package of tax hikes and cuts, the state could begin issuing IOUs as soon as Feb. 1. GOP legislators join a suit against the package. Jordan Rau and Evan Halper in the Los Angeles Times -- 1/6/09

Senate session just starting and Feinstein already rattling cages -- Sen. Dianne Feinstein's chilly response today to outreach from President-elect Barack Obama - after stomping on his choice of fellow Californian Leon Panetta as head of the CIA - dealt the incoming administration what's being described as the first "brush-back pitch" from powerful Democrats in Washington. Carla Marinucci in the San Francisco Chronicle -- 1/6/09

UC to curtail enrollment in 2009 -- The University of California is preparing to limit the number of freshmen it admits this year, a step brought on by the state budget crisis. Matt Krupnick in the Contra Costa Times -- 1/6/09

Flow of venture capital for green tech slows -- After years of rapid growth, venture capital investments in green technology started shrinking in the fourth quarter of 2008 as the financial crisis took its toll, two new reports show. David R. Baker in the San Francisco Chronicle -- 1/6/09

California budget talks collapse again, Democrats say -- Democrats in the Legislature says they've given up trying to persuade Gov. Arnold Schwarzenegger to support an $18-billion package of tax hikes and cuts. Evan Halper and Jordan Rau in the Los Angeles Times Kevin Yamamura in the Sacramento Bee JUDY LIN AP Matthew Yi in the San Francisco Chronicle -- 1/6/09

Steinberg: Schwarzenegger has "cold feet" about budget deal -- In a conference call with The Bee's editorial board this afternoon, Senate leader Darrell Steinberg explained why a promising budget deal with Gov. Arnold Schwarzenegger blew up today. Stuart Leavenworth in the Sacramento Bee -- 1/6/09

Surf, sewage form a combustible mix in Malibu -- The city is eager to complete Legacy Park, where storm water would be treated. But environmental groups say officials aren't taking adequate steps to prevent sewage from leaching into the ocean. Martha Groves in the Los Angeles Times -- 1/6/09

LAPD tried to reverse a coroner's verdict in girl's death -- After a 19-month-old child was killed by police in a shootout, a high-ranking official pushed a campaign to reopen the investigation into her death. The intense lobbying failed. Joel Rubin in the Los Angeles Times -- 1/6/09

Apple offers variable pricing, more DRM-free music on iTunes -- After fighting with record labels over its everything-for-99-cents stance, Apple today said it would finally start offering different songs at different prices. Chris Gaither in the Los Angeles Times JESSICA MINTZ AP John Boudreau in the San Jose Mercury BRAD STONE in the New York Times -- 1/6/09

Apple unveils software updates, new laptop -- There was no Steve Jobs and no game-changing gadgets at Macworld's keynote speech Tuesday, but Apple marketing chief Phillip Schiller delivered eye-catching software updates and a supercharged, tiny MacBook Pro. Ryan Kim in the San Francisco Chronicle -- 1/6/09

New study challenges black support for Proposition 8 -- A new study of voting patterns on Proposition 8, the November ballot measure that would outlaw same-sex marriage, concludes that African American support, reported by exit pollsters at 70 percent, was at least 10 percentage points lower. Dan Walters SacBee Capitol Alert -- 1/6/09

Budget cuts target California Conservation Corps -- The Schwarzenegger administration's recession-driven budget would dismantle the California Conservation Corps, an iconic state agency that became a national model for tapping at-risk youth, and shift the CCC's functions to a dozen local county conservation programs funded largely by nonprofits. John Howard in Capitol Weekly -- 1/6/09

Schwarzenegger budget proposal holds 'dangers,' police chiefs association says -- The state police chiefs association warned Gov. Arnold Schwarzenegger and legislative leaders in a letter today that the governor's budget-cutting proposals for prisons and parole present "dangers" that are "exceptionally severe." Andy Furillo in the Sacramento Bee -- 1/6/09

It’s wedding bells for Rep. Ellen Tauscher -- Rep. Ellen Tauscher, D-Alamo, announced today her engagement to retired Delta Airlines pilot and widower James Cieslak. Lisa Vorderbrueggen in the Contra Costa Times -- 1/6/09

Allstate gets OK to hike homeowner insurance 6.9% in California -- California Insurance Commissioner Steve Poizner has granted a request from Allstate Insurance for a 6.9% increase in its rates for homeowner coverage, according to the state Department of Insurance. The item is in the Los Angeles Times -- 1/6/09

California's legislative leaders prepared to cut own budgets -- Democratic legislative leaders said Monday that California's $40 billion budget deficit will require the Legislature to sacrifice, but they declined to agree to Gov. Arnold Schwarzenegger's proposal that they cut their budget by 10 percent. Aurelio Rojas in the Sacramento Bee -- 1/6/09

Walters: Redevelopment bond scheme floated again -- A convoluted and highly questionable scheme to generate billions of dollars for the state via local redevelopment agencies is being revived as Gov. Arnold Schwarzenegger and legislative leaders race with the calendar to close an enormous budget deficit. Dan Walters in the Sacramento Bee -- 1/6/09

Legality of proposed California tax plan in question -- Any budget agreement between Democrats and Gov. Arnold Schwarzenegger that skirts the state's two-thirds vote requirement for new taxes will almost certainly be challenged in the courts – and there's a significant chance the state would lose, some legal experts said Monday. Phillip Reese in the Sacramento Bee -- 1/6/09

Nickel-a-drink tax hike proposal unwelcome at Inland bars -- Complaining that they already have been hit hard by the ailing economy, many Inland bar owners are upset by Gov. Arnold Schwarzenegger's proposal to raise taxes on cocktails, beer and wine purchased at bars. SEAN NEALON and JIM MILLER in the Riverside Press -- 1/6/09

Gay-marriage opponents attack Jerry Brown's argument to void Proposition 8 -- Legal briefs filed Monday say the California attorney general's theory 'fails at every level' and contradicts the judiciary's role. The state Supreme Court could hear oral arguments as soon as March. Jessica Garrison in the Los Angeles Times John Wildermuth in the San Francisco Chronicle Howard Mintz in the San Jose Mercury LISA LEFF AP -- 1/6/09

Vandals desecrate pro-gay Catholic church -- Parishioners of the Most Holy Redeemer Catholic Church in San Francisco's Castro neighborhood plan to arrive early for morning Mass today so they can paint over walls that were scrawled with swastikas and other graffiti. Meredith May in the San Francisco Chronicle -- 1/6/09

Valley retail icon Gottschalks teeters on edge -- Even in the worst of times, when the economy provided little hope, the Central Valley at least had Gottschalks. Now that's in danger, too. Dale Kasler in the Sacramento Bee -- 1/6/09

Former eBay chief Meg Whitman expected to run for governor -- Meg Whitman, the former CEO of eBay, has resigned from three corporate boards, clearing the way for a 2010 run for California governor. Shane Goldmacher in the Sacramento Bee Mary Anne Ostrom in the San Jose Mercury -- 1/6/09

Friendship Park's intended purpose is lost in fog of border war -- There are just two weeks left in his presidency, but down in San Diego County the heavy machinery is grinding away at one last grand project from the administration of George W. Bush. Hector Tobar in the Los Angeles Times -- 1/6/09

Choice of Panetta to head CIA puzzles experts -- Former U.S. Rep. Leon Panetta of Monterey might face a mission impossible - or at least a mission very difficult - should he win Senate confirmation as the new head of the Central Intelligence Agency, a clandestine government service battered by years of controversy and facing demands for reform. Matthew B. Stannard in the San Francisco Chronicle TOM RAUM AP Anne E. Kornblut and Joby Warrick in the Washington Post -- 1/6/09

'Hormone imbalance' raises question of cancer -- Steve Jobs was stricken in 2004 but survived. The hormone problem may signal recurrence, some doctors suggest. Shari Roan in the Los Angeles Times -- 1/6/09

Jobs breaks silence on health - Apple shares up -- Apple CEO Steve Jobs ducked his annual speaking engagement at the Macworld Expo, but he can't seem to dodge the spotlight. Tom Abate in the San Francisco Chronicle -- 1/6/09

Even without Steve Jobs, the Apple show goes on at Moscone -- This year's Macworld Expo gets seriously under way this morning at Moscone Center, but for the first time in more than a decade, Apple CEO Steve Jobs won't star in the main event. The keynote speech, scheduled for 9 a.m., will be delivered by Apple Senior Vice President Phil Schiller. The item is in the San Francisco Chronicle -- 1/6/09

State’s 2008 auto sales look weak -- California, the nation's No. 1 car market, is still compiling the final numbers on 2008 new-vehicle sales, but few in the state's auto industry are looking forward to seeing them. Mark Glover in the Sacramento Bee -- 1/6/09

Disabled man's crusade a bane to business owners -- If your counters are too high or parking spaces too narrow, beware of disabled activist Thomas Mundy. He and others like him say lawsuits are the only way to enforce ADA compliance. Carol J. Williams in the Los Angeles Times -- 1/6/09

Richardson's withdrawal a mixed blessing for Silicon Valley activists -- Bill Richardson's surprise decision to withdraw his bid to become commerce secretary has left a group of Silicon Valley Chinese-American activists scrambling to get him to apologize for his role in the case of a Taiwanese-American scientist once accused of stealing nuclear secrets. Ken McLaughlin in the San Jose Mercury -- 1/6/09

L.A. teachers on chopping block -- Eyeing an ever-widening budget gap, Los Angeles Unified School District officials said Monday that they could soon send nearly 3,000 nonpermanent teachers notices warning of imminent layoffs. George B. Sanchez in the Los Angeles Daily News -- 1/6/09

Nearly 35,000 get UC holiday present -- Nearly 35,000 former University of California students received a holiday gift from their alma mater: a check for as much as $12,000. Matt Krupnick in the Contra Costa Times -- 1/6/09

Educators concerned about proposed January budget -- The proposal to reduce the school year by five days included in Gov. Schwarzenegger's proposed January budget is cause for concern for many California educators. Debbie Pfeiffer Trunnell in the Inland Daily Bulletin -- 1/6/09

Funding freeze delays Cal Poly building project -- Cal Poly Pomona has been forced to suspend construction on its new Business Administration Building due to a state freeze of $3.8 billion in infrastructure funding. Daniel Tedford in the San Gabriel Tribune -- 1/6/09

Delta canal plan likely to land in court, experts agree -- The Schwarzenegger administration's plan to fast-track construction of a water canal around the Delta leans on an old interpretation of state water law from a bygone era. Matt Weiser in the Sacramento Bee -- 1/6/09

La Niña blamed for more drought -- San Diego had its wettest November-December combo in 23 years, yet the dreaded “D” word keeps popping up. Yes, meteorologists are still talking about continued drought in their long-range predictions. La Niña is the culprit. Robert Krier in the San Diego Union-Trib -- 1/6/09

Gasoline prices rise -- The U.S. average climbs for the first time since Sept. 15. California sees its third straight weekly increase. Ronald D. White in the Los Angeles Times -- 1/6/09

California brown pelicans found frail and far from home -- The coastal birds have been seen on highways, runways and in backyards, and they share symptoms of disorientation, fatigue and bruising. The phenomenon is stumping experts. Louis Sahagun in the Los Angeles Times -- 1/6/09

Salamander may trump subdivision -- Calaveras County's planning staff is recommending that the Board of Supervisors today reject a proposed 124-home subdivision in Wallace because the developer behind the project has not made changes necessary to protect the California Tiger Salamander, a species listed by the federal government as threatened with extinction. Dana M. Nichols in the Stockton Record -- 1/6/09

State healthcare for kids gets dismal rating, may get worse -- California’s performance in providing healthcare to children slipped in 2008 and as many as 1 million children in the state could be without health insurance this year, a leading children’s advocacy group reports in its annual report card released today. Timm Herdt in the Ventura Star -- 1/6/09

Solano County sued over pot ID cards -- A medical-marijuana advocacy group sued Solano County on Monday for its failure to issue identification cards to users of medicinal cannabis as required by state law. Henry K. Lee in the San Francisco Chronicle -- 1/6/09

Group cites deep flaws in juvenile justice plan -- The $93 million effort to reform California's juvenile justice system by transferring many young offenders to county custody is deeply flawed, with inadequate guidelines for how the money should be spent and contains no system for tracking the effectiveness of local programs, according to a report being issued today by the Prison Law Office. Dana M. Nichols in the Stockton Record -- 1/6/09

California Supreme Court says breakaway parish can't take national church's property -- The ruling comes after a Newport Beach parish split from the U.S. Episcopal church over the ordination of a gay bishop. Other denominations could be affected. Maura Dolan and Duke Helfand in the Los Angeles Times -- 1/6/09

Televisa-Univision court clash could alter landscape of Spanish-language TV -- Dominant telenovela producer Televisa wants out of its contract with powerful Univision. Meg James in the Los Angeles Times -- 1/6/09

SS Catalina is seaworthy no more -- The once-proud steamship, which ferried millions of passengers to the island town of Avalon, is being cut for scrap after sitting for years in Ensenada harbor. Bob Pool in the Los Angeles Times -- 1/6/09

Villaraigosa, Bratton expect crime to dip in 2009 -- Without setting a target percentage decline, the police chief acknowledges that progress could depend on how Los Angeles' budget woes affect his department. Joel Rubin in the Los Angeles Times -- 1/6/09

Oakland officials don't like planned HBO show -- Art really does imitate life. A few well-meaning Oakland city officials reacted rather badly to news that HBO will soon begin production of its latest edgy urban drama, the story of a middle-aged pimp struggling to leave street life behind. Chip Johnson in the San Francisco Chronicle -- 1/6/09

Whistle-blower claims Oakland police chief abused power promoting union head -- Police Chief Wayne Tucker stopped a rank-and-file vote of no confidence in his administration by unilaterally promoting the police union president to boost his pension eligibility, according to whistle-blower and internal affairs complaints sent to city officials last week. Thomas Peele in the Oakland Tribune -- 1/6/09

24-karat advice: Beware -- It could be California's second Gold Rush. The skyrocketing price of gold has people mining their jewelry boxes for every bit of the precious metal to sell for cash. M.S. Enkoji in the Sacramento Bee -- 1/6/09

Closure of City Store a sign of the times -- There was a time when San Diego and many other cities saw dollar signs in old street signs, parking meters, fire hydrants and jail doors – discards that were otherwise destined for the scrap yard. Helen Gao in the San Diego Union-Trib -- 1/6/09

Former Oakland man wins $240,000 in settlement of air travel discrimination suit -- Two Transportation Security Administration officials and JetBlue Airways have paid a former Oakland man $240,000 to settle charges that they illegally discriminated against him based on his ethnicity and the Arabic writing on his T-shirt. Josh Richman in the Oakland Tribune -- 1/6/09