California budget talks marked by secrecy -- Schwarzenegger and the top two legislative leaders of both parties have locked the doors on their work to solve the fiscal crisis, and that rubs some colleagues and constituents the wrong way. Eric Bailey in the Los Angeles Times -- 2/10/09

Governor moves to lay off 10,000 state workers -- As legislative leaders Tuesday moved toward a deal that could wipe out the state's $42-billion deficit with temporary tax hikes on retail sales, cars, gasoline and millionaires, Gov. Arnold Schwarzenegger threatened to lay off as many as 10,000 state employees if a new budget is not passed this week.Patrick McGreevy and Michael Rothfeld in the Los Angeles Times Jim Sanders and Kevin Yamamura in the Sacramento Bee -- 2/10/09

California inmate release prompts public safety debate -- Unless California gets a reprieve from the U.S. Supreme Court, it will have to free roughly a third of its prison inmates within the next few years. DON THOMPSON AP -- 2/10/09

Lights. Cameras. Action. Cut! -- Assembly Democrats faced some tough questions from reporters at a Capitol news conference the lawmakers called today to tout "financial assistance" for the state's unemployment offices. How tough? Well, Assembly Speaker Karen Bass's chief spokeswoman tried to cut off questioning after just a few queries. Wyatt Buchanan Chronicle Politics Weblog -- 2/10/09

State's revenues continue decline -- The state's tax revenues in January continued to run well below those of a year earlier, Controller John Chiang reported today, but were slightly higher than last year's budget forecasts. Dan Walters SacBee Capitol Alert -- 2/10/09

Some Banks Want to Return Government Money -- Wall Street banks have taken billions of taxpayer dollars. Now some of them are starting to wonder if they should give the money back. LOUISE STORY in the New York Times -- 2/10/09

Prison hospital fight continues until V.C. site off list -- Federal Receiver J. Clark Kelso may have finally come to the realization that you can’t get blood from a stone, or billions of taxpayer dollars from a state facing a $42 billion fiscal crisis. Kathy Long in the Ventura Star -- 2/10/09

Tauscher to re-introduce ‘dwell time’ bill -- Continuing the “it’s-a-whole-new-ballgame-with-Obama-in-the-White-House” waltz, Rep. Ellen Tauscher, D-Alamo, this Thursday will announce she’s introducing legislation to provide more “dwell time” for troops deployed to Iraq and Afghanistan, to help them recover mentally and physically and give military units time to repair and upgrade equipment. Josh Richman Political Blotter weblog -- 2/10/09

Salazar puts coastal drilling plans on hold -- President Obama is shelving a plan announced in the final days of the Bush administration to open much of the U.S. coast to oil drilling, including 130 million acres off California's coast from Mendocino to San Diego. Zachary Coile in the San Francisco Chronicle -- 2/10/09

California Views $200 Million Private Debt Sale -- California, shut out from the municipal bond market as it ran out of cash amid a record deficit, is considering circumventing Wall Street by selling infrastructure bonds directly to a local agency. Michael B. Marois Bloomberg -- 2/10/09

Villaraigosa already looking beyond L.A. mayor's race -- When Los Angeles Mayor Antonio Villaraigosa kicked off his re-election campaign Saturday, he told reporters that he wanted to make the campaign about "what we intend to do in the next four years." John Wildermuth in the San Francisco Chronicle -- 2/10/09

GOP won't derail Solis on hubby's taxes -- Republicans aren’t going to derail Labor Secretary-nominee Hilda Solis’ nomination over her husband’s tax problems, but they still have serious reservations about her ties to labor unions. MANU RAJU Politico -- 2/10/09

Schwarzenegger: Layoffs coming if no budget soon -- Gov. Arnold Schwarzenegger's administration warned Tuesday that it will begin proceedings to lay off thousands of state workers if the governor and legislative leaders do not reach a budget deal by Friday. JULIET WILLIAMS AP Michael Rothfield in the Los Angeles Times Michael B. Marois and William Selway Bloomberg -- 2/10/09

Don Henley rocks a donation to Jerry Brown -- Don Henley, the singer who co-founded the Eagles, donated $13,000 to Attorney General Jerry Brown last Friday, according to new campaign filings. Brown is widely expected to run for governor in 2010. Shane Goldmacher SacBee Capitol Alert -- 2/10/09

USC buys 2 disputed hospitals on campus -- The university will pay $275 million for USC University Hospital and USC Kenneth Norris Jr. Cancer Hospital, ending the fight between the school and Tenet Healthcare over control of the facilities. Lisa Girion in the Los Angeles Times -- 2/10/09

Despite Slump, Intel Plans Big Investment -- Intel, the world’s largest chip maker, is vowing to spend more money than ever before on new manufacturing technology despite a sharp downturn in its profits. ASHLEE VANCE in the New York Times -- 2/10/09

California forced to issue IOUs to counties -- California's budget woes will sweep over California's 58 counties this week when they get IOUs instead of checks for $89 million in anticipated payments for welfare, food stamps and other services. John Wildermuth in the San Francisco Chronicle -- 2/10/09

Inland supervisors join effort to pressure lawmakers on budget -- Several Southern California county boards of supervisors including those for Riverside and San Bernardino counties will convene in the capital this week to pressure state lawmakers on the state budget. JIM MILLER in the Riverside Press -- 2/10/09

Budget woes may stop 276 public works projects -- Nearly 300 state-funded public works projects will go forward through Friday, but they could be stopped cold if state leaders cannot find a solution to California's budget crisis by the end of the week. Wyatt Buchanan in the San Francisco Chronicle -- 2/10/09

Schwarzenegger sues Chiang over furloughs -- Gov. Arnold Schwarzenegger today sued state Controller John Chiang to force the application of unpaid furloughs to employees of constitutional officers. Jon Ortiz in the Sacramento Bee Patrick McGreevy in the Los Angeles Times -- 2/10/09

Walters: Reaching a deficit accord is thorny task -- It's difficult to separate the meaningful wheat from the superficial chaff in the complex, secretive negotiations over closing the state's huge budget deficit, but we'll give it a try. Dan Walters in the Sacramento Bee -- 2/10/09

In-home care program thrust into budget debate -- Leona Heydenryk, 92, is already imagining how she will manage, hauling one grocery bag out of her car, pushing it to her home on her rolling walker and then inhaling from her oxygen tank before going back for the second bag. Susan Ferriss in the Sacramento Bee -- 2/10/09

Senate stimulus bill not as kind to California -- California officials who were counting on help from the new economic stimulus package to confront a $42 billion budget shortfall are now fretting that the Senate is dramatically shortening that lifeline of federal aid. Zachary Coile in the San Francisco Chronicle -- 2/10/09

Conservation Corps in serious budget danger -- Gov. Arnold Schwarzenegger's latest budget proposal would eliminate the iconic state agency that employs 3,000 people, many of them teenagers and young adults down on their luck, who provide services to 250 communities and organizations statewide. Peter Fimrite in the San Francisco Chronicle -- 2/10/09

Judges order state to free thousands of inmates -- Tens of thousands of California inmates will have to be released over the next two to three years to relieve overcrowding that has ravaged prison medical and mental health care, a panel of federal judges said Monday. Bob Egelko, Wyatt Buchanan in the San Francisco Chronicle Michael Rothfeld in the Los Angeles Times Denny Walsh in the Sacramento Bee SOLOMON MOORE in the New York Times John Myers Capitol Notes weblog -- 2/10/09

Republican Whitman launches 2010 bid for governor -- The move by the billionaire businesswoman – establishment of an "exploratory" committee – likely sets up what's expected to be an expensive 17-month auction between herself and Insurance Commissioner Steve Poizner in the 2010 Republican primary. Shane Goldmacher in the Sacramento Bee Carla Marinucci in the San Francisco Chronicle -- 2/10/09

LA mayor leaves door open for 2010 governor's race -- Los Angeles Mayor Antonio Villaraigosa said Monday he will consider running for California governor even if re-elected to another four-year term at City Hall next month. MICHAEL R. BLOOD AP -- 2/10/09

San Jose mayor heading to Washington this week to talk stimulus -- San Jose Mayor Chuck Reed on Wednesday is expected to join the leaders of California's two other biggest cities, Los Angeles Mayor Antonio Villaraigosa and San Diego Mayor Jerry Sanders, to make their case for California as Congress continues debating President Barack Obama's $800 billion-plus economic stimulus bill. Denis C. Theriault in the San Jose Mercury -- 2/10/09

Sacramento Area's officials issue plea for funds -- With cupboards bare and jobs dwindling, Sacramento area leaders ratcheted up their pitch this week for a chunk of the federal government's $800 billion economic stimulus package. Tony Bizjak in the Sacramento Bee -- 2/10/09

Veteran police officers' jobs may be at stake as San Bernardino considers layoffs -- Trying to build the size of their police force, San Bernardino officials offered signing bonuses and other incentives. Now, a plan to ease a budget crisis calls for laying off as many as 49 officers. CHRIS RICHARD in the Riverside Press -- 2/10/09

Plan to furlough Sacramento city fire engines is drawing heat -- The controversy over taking city fire engines off the streets is about to get much more heated. Ryan Lillis in the Sacramento Bee -- 2/10/09

Bottom is predicted for region's home prices -- Home prices in El Dorado, Placer, Sacramento and Yolo counties will likely bottom out in the final three months of 2009, national forecaster Moody's Economy.com reported Monday. Jim Wasserman in the Sacramento Bee -- 2/10/09

Mortgage group warning of commercial foreclosures -- As the federal government scrambles to prop up financial institutions weakened by home loan failures, a report from the Mortgage Bankers Association suggests that lenders may be facing new problems in the commercial sector. Emmet Pierce in the San Diego Union-Trib -- 2/10/09

Thriving Ferring to open new site -- Amid these dark economic times and the downsizing gloom in San Diego's biotechnology community, Ferring Pharmaceuticals shines. Terri Somers in the San Diego Union-Trib -- 2/10/09

Tribe bets on 'show' against vegas odds -- The Agua Caliente Band of Cahuilla Indians will lift the curtain on a new Las Vegas-style $76 million, state-of-the-art concert theater at a time when Vegas ventures are dimming the lights. Debra Gruszecki in the Desert Sun -- 2/10/09

Bond Market in Winter Thaw -- A growing number of big companies are taking advantage of the thawing credit markets to raise large sums of money at low interest rates, with Cisco Systems Inc. Monday selling $4 billion in bonds to bolster its war chest for acquisitions. BEN WORTHEN and KELLIE GERESSY in the Wall Street Journal -- 2/10/09

Obama Says Failing to Act Could Lead to a ‘Catastrophe’ -- President Obama took his case for his $800 billion economic recovery package to the American people on Monday, as the Senate cleared the way for passage of the bill and the White House prepared for its next major hurdle: selling Congress and the public on a fresh plan to bail out the nation’s banks. SHERYL GAY STOLBERG and HELENE COOPER in the New York Times LAURA MECKLER and JONATHAN WEISMAN in the Wall Street Journal Anne E. Kornblut and Michael A. Fletcher in the Washington Post -- 2/10/09

Full text of Barack Obama's first presidential news conference -- The item is in the Los Angeles Times -- 2/10/09

New Bailout May Top $1.5 Trillion -- The gravity of the financial crisis confronting the Obama administration will come into stark focus today when officials unveil a three-pronged rescue program that may commit up to $1.5 trillion in public and private funds, and possibly more, lawmakers and other officials said. David Cho and Lori Montgomery in the Washington Post -- 2/10/09

Financial bailout expected to rely on private investors -- Treasury Secretary Timothy Geithner's plan reportedly limits the losses of firms willing to buy bad loans to lighten the woes of banks. Walter Hamilton and Maura Reynolds in the Los Angeles Times -- 2/10/09

A Serious and Expansive Debut -- In a prime-time debut for the new Oval Office occupant and a press corps often accused of being too enamored of him, President Obama faced journalistic skepticism from the opening question. Howard Kurtz in the Washington Post -- 2/10/09

Starting Public-Sector Jobs With Parting Gifts in Hand -- Consider the new chairman of the Securities and Exchange Commission. Mary L. Schapiro reported that she is getting a lump-sum payment of $5 million to $25 million from the Financial Industry Regulatory Authority, the brokerage industry's self-regulating body she headed before joining the SEC last month. An SEC spokesman Friday said the package was worth $7.2 million. Tomoeh Murakami Tse in the Washington Post -- 2/10/09

Caps on Executive Pay Cost Uncle Sam, Too -- According to the latest cost estimate of the economic stimulus bill by the Congressional Budget Office, Uncle Sam will lose $10.8 billion in tax revenue that otherwise would have been paid by high-rolling Wall Street executives. David M. Herszenhorn in the New York Times -- 2/10/09

Under Obama, same stance on rendition suit -- President Obama's Justice Department signaled in a San Francisco courtroom Monday that the change in administrations has not changed the government's position on secrecy and the rights of foreign prisoners - and that lawsuits by alleged victims of CIA kidnappings and torture must be dismissed on national security grounds. Bob Egelko in the San Francisco Chronicle -- 2/10/09

Funding switch could oust outside students from Beverly Hills schools -- One of the most sought-after tickets in Southern California, a permit to enroll a child in the academically acclaimed Beverly Hills Unified School District, may soon disappear. Seema Mehta in the Los Angeles Times -- 2/10/09

Google Taking a Step Into Power Metering -- Google will announce its entry Tuesday into the small but growing business of “smart grid,” digital technologies that seek to both keep the electrical system on an even keel and reduce electrical energy consumption. MATTHEW WALD and MIGUEL HELFT in the New York Times -- 2/10/09

California gasoline prices jump a dime in the last week -- The state average rises to $2.215 a gallon, leading increases in most of the country. Nationwide, the average reaches $1.926, up 3.4 cents from a week earlier. Ronald D. White in the Los Angeles Times -- 2/10/09

Shrinking Water Supplies Imperil Farmers -- Dwindling water supplies are compounding economic woes in California's Central Valley, causing farmers to leave fields fallow and confront the prospect of going under. JIM CARLTON in the Wall Street Journal -- 2/10/09

El Dorado water district puts drought plan at the ready -- El Dorado Irrigation District is preparing to declare a Stage 1 drought March 9, barring significant increases in snow and rainfall in the next four weeks. Cathy Locke in the Sacramento Bee -- 2/10/09

Study: Warming climate to hurt California bird species -- A new Audubon California study released Tuesday finds that the state will lose significant numbers of its native birds as climate change quickly shrinks the range and habitat of more than 100 species. JASON DEAREN AP -- 2/10/09

Edison ready to pay almost double amount Riverside paid for power from landfill -- Southern California Edison, under pressure to meet state renewable-energy mandates, is preparing to pay nearly double the price Riverside's electric utility had been paying for power from a Riverside County landfill. DAVID DANELSKI in the Riverside Press -- 2/10/09

Retailers face penalties for selling toxic toys -- A federal law regulating toxic chemicals in children's products goes into effect Tuesday, placing retailers in California under additional pressure to clear the shelves of toys containing illegal amounts of lead and other toxic compounds. Jane Kay in the San Francisco Chronicle -- 2/10/09

Los Angeles mayor seeks water restrictions, rate hike -- Despite recent rain, the ongoing drought and dwindling water sources prompt Villaraigosa to seek drastic action. The DWP will vote on his proposal next week. Phil Willon in the Los Angeles Times -- 2/10/09

Design completed for Great Park in Irvine -- Building it is another matter: Budget and construction timelines are up in the air. Park officials wait for a new agreement with Lennar Corp., which plans to develop space around the park. Paloma Esquivel in the Los Angeles Times -- 2/10/09

L.A. Unified launches solar energy program -- The school district announces a $350-million goal of putting enough solar panels on schools and other district buildings to generate 50 megawatts of electricity by 2012 and lower its electricity bill. Mitchell Landsberg in the Los Angeles Times -- 2/10/09

Foundation aims to help L.A. immigrants -- The California Community Foundation plans a campaign to help L.A. immigrants become more active citizens by helping them learn English, improve job skills and increase civic participation. Teresa Watanabe in the Los Angeles Times -- 2/10/09

Farms see big crop of workers -- What a difference a bad economy makes. The collapse of the construction industry and a slump in the restaurant and food service sector have sent thousands of people back to looking for work on California farms, which not so long ago were hurting for workers. Jerry Hirsch in the Los Angeles Times -- 2/10/09

Restaurant owner sentenced for employing illegal workers -- A restaurant owner convicted of employing illegal aliens and mail fraud was sentenced Friday to pay $49,000 in fines and spend 36 months on probation and eight months in home confinement. Matt O'Brien in the Contra Costa Times -- 2/10/09

Audit shows $500,000 in unpaid fees at Riverside County sheriff's training facility -- The Riverside County Sheriff's Department cost the county almost half a million dollars in lost revenue by failing to collect required fees at the Ben Clark Public Safety Training Center in Riverside, according to a newly released audit. JULIA GLICK in the Riverside Press -- 2/10/09

Octuplets' mother gets food stamps, disability payments -- The Whittier mother of octuplets already receives food stamps and disability payments to help feed and care for her six other children. Airan Scruby and Ruby Gonzales in the San Gabriel Tribune -- 2/10/09

CHP ordered to pay $4.6 million in killing of Hilmar teen -- A federal jury in Fresno has awarded $4.6 million to the parents of a Hilmar teen shot to death by a California Highway Patrol officer in 2001. Victor A. Patton in the Fresno Bee -- 2/10/09