Doubts grow about California budget deal -- Interest groups at both ends of the political spectrum reacted with anger Thursday to the emerging plan to close the state's massive budget deficit, and doubts began to mount about whether it had enough support in the Legislature to survive a planned vote this weekend. Mike Zapler in the San Jose Mercury -- 2/12/09

Schwarzenegger applauds progress in budget talks -- Gov. Arnold Schwarzenegger on Thursday said progress was being made in negotiations to close California's $42 billion budget gap and that he was hoping for a legislative vote this week. JUDY LIN AP -- 2/12/09

 •  Armstrong has heated exchange with reporter -- Lance Armstrong's temper was tested during tonight's news conference at the Sheraton Grand Hotel in downtown Sacramento as the cycling star was on hand to promote the Tour of California. Melody Gutierrez in the Sacramento Bee -- 2/12/09

 •  Landis crashes in Sacramento training run for Tour of California -- Floyd Landis crashed his bike today in Sacramento during a training run for the Tour of California. The former Tour de France champion still plans to compete Saturday in his first race back from a two-year doping ban, which expired Jan. 30. GREG BEACHAM AP -- 2/12/09

Republicans win concessions in budget plan -- Republicans are winning major concessions from majority Democrats in the proposed state budget as negotiations intensified dramatically Thursday in the Capitol. The concessions include eased workplace rules and exemptions from California's environmental laws for transportation projects. Anthony York in Capitol Weekly -- 2/12/09

California to Legislature: Drop Dead -- Will all those who are happy with the Legislature, its handling of the state's $40 billion budget hole, and the way it's communicating about what happens next please stand up? I don't see anyone... and that's not just because I'm staring at a computer screen. John Myers Capitol Notes weblog -- 2/12/09

Grijalva resigns from Cal Fire; Walters named his successor -- Chief Ruben D. Grijalva, the state's top fire boss who led the battle last year to control and extinguish 2,000 California wildfires, will retire Monday and become the interim chief of a San Jose suburb. Andrew McIntosh in the Sacramento Bee -- 2/12/09

Budget vote to come during bike race -- The state Assembly has scheduled a floor session for 9 a.m. Saturday to vote on the state budget, just as 75,000 to 100,000 spectators are expected to converge on the state Capitol for the prologue of the Tour of California bicycle race. Kevin Yamamura in the Sacramento Bee -- 2/12/09

State tax hikes would hit businesses hard -- The proposed solution to California’s state budget crisis ($42 billion in the hole over 18 months) is getting negative grades from Orange County’s business owners. Jan Norman in the Orange County Register -- 2/12/09

Gregg withdraws nomination to become commerce secy -- Republican Sen. Judd Gregg of New Hampshire abruptly withdrew his nomination as commerce secretary Thursday, citing "irresolvable conflicts" with President Barack Obama's handling of the economic stimulus and 2010 census. DAVID ESPO AP -- 2/12/09

AP Interview: Whitman criticizes Calif budget plan -- Presumed gubernatorial candidate Meg Whitman said Thursday that she is stunned by the budget proposal California lawmakers might bring to a vote within days to close the state's $42 billion budget deficit. JULIET WILLIAMS AP -- 2/12/09

Whitman on Today show: ''I'm uniquely qualified'' to be governor -- Former eBay CEO Meg Whitman is making the media rounds, and hit the Today show this morning to talk about her gubernatorial aspirations, her thoughts on the economy, and other items. Carla Marinucci Chronicle Politics weblog -- 2/12/09

CalSTRS: more women on corporate boards -- CalSTRS plans to urge corporations to put more women on their boards of directors, citing a study that says having women in the board room improves the financial performance of large companies. Ed Mendel Calpensions.com -- 2/12/09

Los Angeles' Bungled Solar Plan -- Despite its sunny title, the “Green Energy and Good Jobs for Los Angeles Solar Initiative” is dogged by the fact that the plan to generate 400 megawatts from acres of glistening photo-voltaic panels creates city-government jobs while cutting the area’s hungry private solar firms out of a six-year bonanza. BETH BARRETT LA Weekly -- 2/12/09

CHP grounds charter tour buses used by casino, others -- More than a dozen charter buses used by a local Indian casino and other venues have been taken out of service after a California Highway Patrol inspection uncovered 74 violations. The CHP ordered 10 of 13 charter buses off the road. Niesha Lofing in the Sacramento Bee -- 2/12/09

Interest groups’ lobbying tally tops $500 million -- California labor unions, business associations and other interest groups spent more than $558 million – about $764,000 a day – to influence California government during the 2007-08 legislative session, according to state records analyzed by Capitol Weekly. Anthony York in Capitol Weekly -- 2/12/09

State officials work on final items in budget -- Gov. Arnold Schwarzenegger and legislative leaders worked Wednesday to put the finishing touches on a budget deal that would close a record-setting $42 billion gap with spending cuts, new taxes and borrowing from Wall Street. Matthew Yi in the San Francisco Chronicle Evan Halper and Patrick McGreevy in the Los Angeles Times Mike Zapler in the San Jose Mercury Kevin Yamamura, Dan Smith and Jim Sanders in the Sacramento Bee Anthony York in Capitol Weekly -- 2/12/09

Secrecy a necessary evil of budget process, Steinberg says -- As news of a tentative budget agreement filtered out Wednesday, the veil of secrecy over negotiations began to lift — though only barely. Steven Harmon in the Contra Costa Times -- 2/12/09

Highlights of California budget proposal -- Here is some of the language that emerged Wednesday as lawmakers and Gov. Arnold Schwarzenegger sought to forge a compromise on the state's budget deficit. Democrats want to bring a budget package to a vote Friday. AP -- 2/12/09

Skelton: California tax hikes long overdue -- The taxes should have been raised a year ago. Make that years. The bite would have been a lot smaller. Maybe just a nibble. Ditto some of the spending cuts, although there were $11 billion in program whacks last year. George Skelton in the Los Angeles Times -- 2/12/09

Budget deal nears, furlough fight continues -- This Friday, about 185,000 state workers took a forced day off without pay, part of Gov. Schwarzenegger’s furlough plan to save the state more than $1.3 billion. And even though an end to the budget stalemate appears to be at hand, the fight over the furloughs continues. The item is in Capitol Weekly -- 2/12/09

Furloughs boost governor's muscle at bargaining table -- Schwarzenegger found a new way to use executive power over what the state pays its employees. It's a game changer that gives more muscle at the labor bargaining table to this governor and to those who follow. Jon Ortiz in the Sacramento Bee -- 2/12/09

Half-done coastal project symbolizes California budget paralysis -- Work on the long-planned transformation of El Morro Village into a campground near Laguna Beach was abandoned because of lack of money. Susannah Rosenblatt in the Los Angeles Times -- 2/12/09

Brown: Prison oversight wrong -- Attorney General Jerry Brown said Wednesday that the state needs to break free of federal court oversight of its troubled prison system. JIM MILLER in the Riverside Press -- 2/12/09

Tales from the ‘dark side:’ Reporters cover government from the inside -- As newspaper staffs wither, Capitol reporters are leaving to join the government they once covered. But their new mission is a lot like their old one – digging up information on state government. John Howard in Capitol Weekly -- 2/12/09

Several bills seek to reform family courts -- Democratic lawmakers are crafting a package of bills to reform family courts in California. One Assemblymember is seeking an audit of the family court system, while another has submitted a bill that would limit the types of testimony that can be used in custody proceedings. Malcolm Maclachlan in Capitol Weekly -- 2/12/09

Nava introduces trio of animal rights bills -- Nava will introduce three pieces of animal rights legislation on Thursday morning, jumping squarely into a contentious issue that could bring large numbers of advocates to the Capitol, and give Nava some wanted, and unwanted, press attention. Malcolm Maclachlan in Capitol Weekly Michael Gardner in the San Diego Union-Trib -- 2/12/09

Rep. Solis Clears Hurdle in Panel -- Rep. Hilda L. Solis (D-Calif.) took a big step toward becoming President Obama's labor secretary yesterday when a Senate committee voted to send her nomination to the full Senate. Senators could vote on her long-stalled nomination this week. Michael A. Fletcher in the Washington Post -- 2/12/09

Solis affidavit moves Labor bid forward -- A Senate panel advanced Rep. Hilda Solis’s nomination as Labor secretary after the California Democrat signed an affidavit to secure GOP support for her confirmation as Labor secretary. Kevin Bogardus The Hill -- 2/12/09

L.A. County to sue over state cuts -- Joining other counties in California, the Los Angeles County supervisors have voted to sue the state of California for deferring hundreds of millions of dollars in payments that fund mandated federal health and social service programs, officials said Wednesday. Troy Anderson in the Torrance Daily Breeze -- 2/12/09

More trips OK'd by Contra Costa retirement fund trustees -- Contra Costa County treasurer and retirement fund trustee Bill Pollacek wanted to get one thing clear before he and his board colleagues voted Wednesday to send him to a Dana Point, Orange County, conference on public pension funds. "For the record, I don't play golf," Pollacek joked. Matthias Gafni in the Contra Costa Times -- 2/12/09

Here's who will benefit from stimulus accord -- First-time home-buyers would get a larger tax break. Laid-off workers would receive higher unemployment benefits and new subsidies for heath insurance. And all but the wealthiest workers would soon get a tax credit worth as much as $800 per couple. Noam N. Levey in the Los Angeles Times -- 2/12/09

Big job boost for California seen -- President Barack Obama says the best way to judge his economic stimulus plan in the next two years will be whether it creates or saves 3 million to 4 million jobs. And if the White House predictions are correct, no state will produce more jobs than California, which has been losing jobs faster than any other state. Rob Hotakainen in the Sacramento Bee -- 2/12/09

Strong sector of state economy starts to slide -- California's exports were one of the last pillars of the state's economy, holding up long after construction, finance, retail and other sectors crumbled. No more. Dale Kasler in the Sacramento Bee -- 2/12/09

Bay Area, Silicon Valley executives expect more layoffs -- Bay Area businesses are anticipating many more layoffs than hires in coming months, according to a new quarterly survey of 505 executives across the nine-county region that found business confidence at a record low. Scott Duke Harris in the San Jose Mercury -- 2/12/09

Gregg Industries to close, 234 workers lose jobs -- After 60 years in El Monte, manufacturer Gregg Industries will close the doors to its iron foundry in May and lay off 234 employees, officials announced Wednesday. Rebecca Kimitch in the San Gabriel Tribune -- 2/12/09

Orange County Probation Department begins layoff process -- Notices are given to 100 officers, though only 58 positions will be cut. Those looking for jobs can turn to L.A. County, where such employees are needed. Tami Abdollah in the Los Angeles Times -- 2/12/09

More Tech Start-Ups Call It Quits -- The deepening recession is speeding up the shakeout in Silicon Valley, forcing droves of start-ups to shut down or sell themselves at fire-sale prices. PUI-WING TAM and BEN WORTHEN in the Wall Street Journal -- 2/12/09

Out of Work and Challenged on Benefits, Too -- It's hard enough to lose a job. But for a growing proportion of U.S. workers, the troubles really set in when they apply for unemployment benefits. Peter Whoriskey in the Washington Post -- 2/12/09

Tesla CEO: Federal loan for electric-car plant could come soon -- Tesla Motors said its long-awaited $450 million loan from the federal government could come as soon as this summer, a crucial factor in its plans to build an electric-car factory in California. Matt Nauman in the San Jose Mercury -- 2/12/09

Orange County bid to roll back deputy pensions hits wall -- A Los Angeles Superior court judge issued a potentially deadly blow this week to the county of Orange in its long-standing lawsuit seeking to rescind generous retirement benefits granted to deputy sheriffs in 2001. NORBERTO SANTANA JR. in the Orange County Register -- 2/12/09

San Bernardino mulling plan to keep car dealerships in business -- Three of the city's remaining car dealers are on the verge of a joint venture intended to keep their businesses alive. The plan calls for the establishment of a Property-based Business Improvement District. Andrew Edwards in the San Bernardino Sun -- 2/12/09

LA Councilman proposes contracts go to firms where CEOs paid less than $500K -- Councilman Richard Alarcon's motion asks the chief legislative analyst to determine the feasibility of a policy that would benefit companies where the chief executive officer has an annual salary of less than $500,000. The item is in the Los Angeles Daily News -- 2/12/09

FBI expects number of major financial bailout fraud cases to rise -- Investigations will focus on big-name companies and the cases are likely to be similar in scope and complexity to that of failed energy giant Enron, Deputy Director John Pistole tells a Senate panel. Josh Meyer in the Los Angeles Times -- 2/12/09

Morrison: Good movies in bad times -- It must be the worst case of bad movie timing since John Dillinger decided to take in the late show at the Biograph. Patt Morrison in the Los Angeles Times -- 2/12/09

Stimulus Victory for Obama, but in a New Political Climate -- The question now is whether the $789 billion economic stimulus plan agreed to by Congressional leaders on Wednesday is the opening act for a more ambitious domestic agenda from President Obama or a harbinger of reduced expectations. RICHARD W. STEVENSON in the New York Times -- 2/12/09

Teachers launch effort to save small classes -- For more than a decade, the rule through third grade in most California classrooms has been one teacher — and no more than 20 students. Teachers love it, parents expect it, and many educators insist that young students need it. Dana Hull in the San Jose Mercury -- 2/12/09

L.A. Unified healthcare contract to preserve free lifetime benefits -- The tentative three-year agreement could diminish the possibility of a strike. It is expected to limit district costs by setting benchmarks for when new employees become eligible. Jason Song and Howard Blume in the Los Angeles Times -- 2/12/09

The Consequences of Falling Short on Water Conservation -- Politicians and water agencies in arid San Diego are turning that simple message into gospel. With supplies constrained and water cuts expected this summer, conserving is as important as ever. ROB DAVIS Voiceofsandiego.org -- 2/12/09

California Utility Looks to Mojave Desert Project for Solar Power -- The largest utility in California, squeezed by rising demand for electricity and looming state deadlines to curb fossil fuels, has signed a deal to buy solar power from seven immense arrays of mirrors, towers and turbines to be installed in the Mojave Desert. ANDREW REVKIN in the New York Times David R. Baker in the San Francisco Chronicle -- 2/12/09

Ethanol, Just Recently a Savior, Is Struggling -- Barely a year after Congress enacted an energy law meant to foster a huge national enterprise capable of converting plants and agricultural wastes into automotive fuel, the goals lawmakers set for the ethanol industry are in serious jeopardy. CLIFFORD KRAUSS in the New York Times -- 2/12/09

L.A. council supports two-year state moratorium on electronic billboards -- The bill by Assemblyman Mike Feuer would go into effect Jan. 1, 2010, and give officials time to study the safety of the signs. Maeve Reston in the Los Angeles Times -- 2/12/09

Effort is underway to keep green, open space around Santa Clarita -- The city's goal is to acquire and protect the unspoiled land and wildlife sanctuaries surrounding it. But the use of taxpayer money draws criticism. Ann M. Simmons in the Los Angeles Times -- 2/12/09

Water Board declares 26 Bay Area waterways 'trash-impaired' -- Fed up with Styrofoam cups, cigarette butts and plastic grocery bags clogging Bay Area waterways, a regional board on Wednesday declared 26 areas "trash-impaired," in violation of the federal Clean Water Act. Hadley Leggett in the San Jose Mercury -- 2/12/09

Elderly immigrants find life in U.S. a tough go -- With government aid limited and the economy straining the finances of the relatives who sponsored them, many are thinking increasingly wistfully of their homelands. Anna Gorman in the Los Angeles Times -- 2/12/09

5 found guilty of forcing women into prostitution in L.A. -- The illegal immigrants were convicted of a plot to lure poor young Guatemalans to the U.S. with the promise of legitimate jobs. Scott Glover in the Los Angeles Times -- 2/12/09

Suspect in Border Patrol agent's slaying rearrested in Mexico -- A suspected drug smuggler accused of killing a U.S. Border Patrol agent was rearrested in Mexico Wednesday morning, more than six months after Mexican officials released him due to an extradition mishap, authorities announced Wednesday. The item is in the San Diego Union-Trib -- 2/12/09

Insider strategies to fix immigration woes -- As if the Obama administration didn't have enough on its plate with a recession, bank troubles and any number of foreign policy crises, a nonpartisan immigration think tank has offered the president a road map to mend the country's dysfunctional immigration bureaucracy. Tyche Hendricks in the San Francisco Chronicle -- 2/12/09

CalPERS seeks bids for hefty HMO contract -- The California Public Employees' Retirement System, the state's largest purchaser of health insurance, is seeking bids for a lucrative HMO contract for nearly a third of the state's 1.3 million public employees, retirees and their families. Bobby Caina Calvan in the Sacramento Bee -- 2/12/09

Sacramento County to close 2 health clinics -- People are used to waiting for care at the Sacramento County facility, one of five such clinics for indigent people in the county. But the situation is about to get a whole lot worse. Cynthia Hubert in the Sacramento Bee -- 2/12/09

Anticipated cuts to SSI will harm the elderly, blind and disabled -- When California legislators finally finish wrestling with a $40 billion budget deficit, residents of all sorts will feel the pinch — school children and municipal workers, the developmentally disabled and unemployed parents. Karen de Sá in the San Jose Mercury -- 2/12/09

Birth of Octuplets Puts Focus on Fertility Clinics -- Pictures of children, his trophies, decorate Dr. Tien C. Chiu’s office. STEPHANIE SAUL in the New York Times -- 2/12/09

Taxpayers may have to cover octuplet mom's costs -- A big share of the financial burden of raising Nadya Suleman's 14 children could fall on the shoulders of California's taxpayers, compounding the public furor in a state already billions of dollars in the red. Shaya Tayefe Mohajer AP -- 2/12/09

Anthem Blue Cross agrees to pay $1 million fine -- California's largest for-profit health provider, Anthem Blue Cross, has agreed to pay a $1 million fine and take back 2,330 people whose insurance was rescinded after they submitted bills for expensive care. AP -- 2/12/09

Lawsuit claims Kaiser refuses to treat autistic children -- Kaiser Permanente Inc., the state's largest health-care provider, refuses to provide or pay for treatment of autistic children in an effort to save costs, according to a lawsuit filed Tuesday. Paul T. Rosynsky in the Oakland Tribune -- 2/12/09

Stimulus prompts talk of health care rationing -- A relatively small provision in the stimulus bill that would devote about $1 billion in government research funds to figure out which drugs and medical devices work better than others has some industry groups, conservative talk-show hosts and others crying the "r" word: rationing. Victoria Colliver in the San Francisco Chronicle -- 2/12/09

No help for dyslexics who want to be doctors -- Would-be doctors with dyslexia or other disorders that impair their reading skills lost a state Supreme Court appeal Wednesday in their attempt to get extra time or other accommodations on the national medical school entrance exam. Bob Egelko in the San Francisco Chronicle -- 2/12/09

Merced confinement site honored -- The House on Wednesday commemorated the Merced Assembly Center, a wartime place Mike Honda's parents once had to call home. Michael Doyle in the Fresno Bee -- 2/12/09

Beer, nudity banned in Bay to Breakers race -- Like banishing beads and masks from Mardi Gras or removing the red carpet and gold statues from the Academy Awards, the banning of floats, beer and nudity at this year's Bay to Breakers will take all the fun out of it, many longtime revelers say. Heather Knight in the San Francisco Chronicle -- 2/12/09

Recall papers filed in Walnut -- Members of a community group opposed to an NFL stadium proposed for neighboring Industry filed recall papers with the city Tuesday morning, the city clerk said. The item is in the San Gabriel Tribune -- 2/12/09

Sheriff Lee Baca's reality TV shows get mixed reviews -- Los Angeles County approves a sixth program, but some say such projects distort police work. Richard Winton in the Los Angeles Times -- 2/12/09