Since This Morning

Attorney general will not investigate ex-Assemblyman Michael Duvall-- State prosecutors have no plans to investigate whether any laws were broken by former Assemblyman Michael Duvall (R-Yorba Linda), who was recorded bragging that he had sex with a woman believed to be a lobbyist, according to a government spokesman. Patrick McGreevy in the Los Angeles Times -- 10/5/09

Schwarzenegger lawyers respond to lawsuit on vetoes -- Attorneys representing Gov. Arnold Schwarzenegger -- in this case, lawyers in Attorney General Jerry Brown's office -- responded Monday to a legal challenge filed by Democratic legislative leaders and social service advocates over the governor's July line-item vetoes. Kevin Yamamura SacBee Capitol Alert -- 10/5/09

California approves new slot machine licenses -- The state's gambling control commission has approved licenses for more than 3,000 new slot machines for 11 Indian tribes. AP -- 10/5/09

Gov wants bills pulled back until water deal is reached -- Gov. Arnold Schwarzenegger, apparently standing by a threat to veto hundreds of bills on his desk unless a deal can be reached on the state's water problems, has suggested to Senate leader Darrell Steinberg that all legislation before the governor should be withdrawn to avoid a veto. About 700 bills are awaiting action. Anthony York in Capitol Weekly -- 10/5/09

Whitman targeted as McDonnell fundraiser canceled -- Former eBay CEO Meg Whitman's appearance at a Virginia fundraiser this week for Republican gubernatorial candidate Bob McDonnell has been canceled. Peter Hamby CNN -- 10/5/09

Apple leaves U.S. Chamber over climate change stance -- Apple has left the U.S. Chamber of Commerce, the fourth company to end its membership over the business group’s climate change stance. A fifth company, Nike, quit the Chamber’s board of directors but remains a member of the group. Jim Snyder The Hill LISA LERER Politico Dana Hull in the San Jose Mercury -- 10/5/09

Prop. 8 backers seek to bump AG Brown to other side of gay-marriage legal fight -- Gay-marriage opponents have asked a federal judge to shift Attorney General Jerry Brown to the plaintiffs' side of a lawsuit challenging Proposition 8, arguing that his refusal to defend the law makes him an adversary in the legal fight. Howard Mintz in the San Jose Mercury -- 10/5/09

Dismissal of Obama birthplace lawsuit argued -- The issue of whether Barack Obama’s birthplace and legitimacy as president deserves to go to trial was argued this morning in Santa Ana, with no immediate ruling by U.S. District Court Judge David O. Carter. Martin Wisckol in the Orange County Register -- 10/5/09

Target Book publisher lists hot seats for 2010 -- For all you campaign junkies who couldn't make it to last week's "California Target Book" conference on the 2010 elections, here's a roundup of what the minds behind the California campaign guide say are the cycle's hottest races to watch. Torey Van Oot SacBee Capitol Alert -- 10/5/09

Soda Tax: It’s About the Revenue -- The push is on for a soda tax. Supporters say it’s a way to improve health problems, and oh, by the way, you could close those messy government budget gaps. Joel Fox Fox & Hounds weblog -- 10/5/09

   California Policy and Politics This Morning

Campaign aides steal show in governor's race -- California's 2010 governor's race is becoming a war of words, complete with fireworks, YouTube videos and comic relief - but it is the high-priced campaign consultants, not the candidates, who are frequently stealing the show. Carla Marinucci, Joe Garofoli in the San Francisco Chronicle -- 10/5/09

Clinton's endorsement of Newsom a slap at Brown? -- When former President Bill Clinton officially endorses San Francisco Mayor Gavin Newsom for governor today, the question on many people's minds will be: Is this about Newsom, or Jerry Brown? Jack Chang in the Sacramento Bee -- 10/5/09

California governor's race travels the information superhighway -- Tom Campbell first ran for Congress in 1988 and used just a handful of tools to reach voters in the Silicon Valley district he eventually won. Jack Chang in the Sacramento Bee -- 10/5/09

Skelton: The arrogance may be Whitman's -- The political novice who would be governor calls state workers 'selfish and arrogant.' That isn't a sound management practice. George Skelton in the Los Angeles Times -- 10/5/09

Suit looming against California over school funding -- Top California school leaders said they soon will sue the state over chronically underfunded schools—a move that in other states has infused billions of dollars into school systems. Sharon Noguchi in the San Jose Mercury -- 10/5/09

California Blunts Budget Cuts -- California officials are finding ways to avoid some of the dire consequences that were expected from closing the state's $24 billion budget gap. RYAN KNUTSON in the Wall Street Journal -- 10/5/09

Potential cost of lawsuits begins to pile up for California's budget -- Driven to desperation while performing triage on this year's budget, Gov. Arnold Schwarzenegger and state lawmakers tapped nearly every pot of public money, pushed some debts down the road and slashed billions from safety-net programs. Denis C. Theriault in the San Jose Mercury -- 10/5/09

Hiltzik: State tax reform panel blew its opportunity -- The Commission on the 21st Century Economy could have confronted the hard issues politicians have dodged for years. Instead it proposes to shift taxes from the rich to the middle class and the poor. Michael Hiltzik in the Los Angeles Times -- 10/5/09

California's highways are in a sad state -- Driving into California after a road trip through six other states is a jarring experience -- literally. Dan Walters in the Sacramento Bee -- 10/5/09

Emissions initiative in Whitman's cross hairs -- If elected governor next year, Republican Meg Whitman vows to suspend California's landmark initiative against global warming on her first day in office. Michael Gardner in the San Diego Union-Trib -- 10/5/09

CalBuzz: Poizner vs. Poizner: Commish Faces His Own Record -- Meg Whitman has stumbled badly in recent weeks in explaining her history of being MIA from every significant political debate of the last three decades. Jerry Roberts and Phil Trounstine CalBuzz -- 10/5/09

   Economy - Jobs

Military homebuyers find VA loans a roadblock -- Before being deployed to the Middle East in August, Air Force Staff Sgt. Jason Goul and his wife, Judith, made several offers to buy foreclosed homes in Fairfield and Suisun City. They lost out each time - even when theirs was the highest offer. Carolyn Said in the San Francisco Chronicle -- 10/5/09

Even as layoffs persist, some good jobs go begging -- In a brutal job market, here's a task that might sound easy: Fill jobs in nursing, engineering and energy research that pay $55,000 to $60,000, plus benefits. CHRISTOPHER LEONARD AP -- 10/5/09

Center created for victimized mortgage borrowers -- Victims of mortgage fraud and loan modification scams in the Inland Empire have a new defender on their side: The Center for Litigation and Consumer Real Estate Education. Matt Wrye in the Inland Daily Bulletin -- 10/5/09

Twitter's becoming an important tool for job seekers and employers -- As the Internet's microblogging superhero Twitter continues to balloon with 40 million users worldwide and countless apps like Twhirl and TweetDeck, the Twittersphere has been overrun lately with refugees from the real world's recession: Twousands and twousands of job seekers. Patrick May in the San Jose Mercury -- 10/5/09

Pensions’ post-crash reforms: slipping away? -- Public and private pension funds with $3 trillion in assets are pushing long-sought reforms that give shareholders more control over corporate boards of directors and executive pay, hoping for a boost from the stock market crash. Ed Mendel Calpensions.com -- 10/5/09

U.S. jobless rate will pass 10 percent, Greenspan says -- Former Federal Reserve Chairman Alan Greenspan predicted on Sunday that the jobless rate will pass 10 percent and stay there for a while, and a second stimulus plan is not needed now. AP -- 10/5/09

   Education

UC Berkeley to pay consultant to find cost cuts -- UC Berkeley has agreed to pay a consultant $3 million to help the school find new ways to save money - an agreement that has irritated some faculty members whose pay is being cut this year. Nanette Asimov in the San Francisco Chronicle -- 10/5/09

Prepaid College Savings Plans Might Not Cover All Costs -- In the last two decades, more than a million families around the country have invested in state funds that pledged to cover the cost of attending their state’s public colleges and universities, regardless of how much tuition increased. SEAN D. HAMILL in the New York Times -- 10/5/09

   Environment

Coastal oil drilling backers aim to sidestep state's barrier -- Supporters want to get around a state commission's opposition to new drilling off California's coast by passing a bill that would create a governor-appointed panel that could then approve the project. Marc Lifsher in the Los Angeles Times -- 10/5/09

Water from waste now on tap in Anaheim -- Orange County’s recently built system for converting sewer water into drinking water is running close to full capacity, and the water it produces is beginning to arrive in Anaheim’s taps — likely resulting in slightly better water quality, according to the Orange County Water District Pat Brennan in the Orange County Register -- 10/5/09

Put high-speed rail underground through Palo Alto, planning workshop recommends -- Imagine a green ribbon of walking and biking paths running eight miles through Palo Alto, Menlo Park and Atherton, interspersed with parks, sculptures and shopping plazas — all along where Caltrain tracks now run. Sharon Noguchi in the San Jose Mercury -- 10/5/09

Uncertainty looms for west-side farmers -- This time of year, farmers on the Valley's west side usually have a fairly good idea what they will be planting next season, and if they will be getting a loan to pay for it. But this is not a normal year. Robert Rodriguez in the Fresno Bee -- 10/5/09

New park service chief sees 'convergence' -- To Jon Jarvis, who takes the helm of the National Park Service this week, the parks are on the verge of rejuvenation. Ken Burns' PBS documentary is sparking new enthusiasm, and a centennial is near. Julie Cart in the Los Angeles Times -- 10/5/09

   Health Care

L.A. County expects H1N1 flu vaccine this week -- First shipments of FluMist are expected to arrive in clinics and doctors offices by Wednesday. School-age children in particular are encouraged to get the vaccine as soon as possible. Molly Hennessy-Fiske in the Los Angeles Times -- 10/5/09

Cities applaud ruling on pot -- California's Court of Appeal has upheld a lower court's permanent injunction that bars a medical marijuana dispensary from operating in Claremont. Wes Woods II in the Inland Daily Bulletin -- 10/5/09

How healthcare overhaul could affect prescription drug plans -- Insurance exchanges may offer consumers new coverage options. Legislation may also improve the drug benefit under Medicare Part D. James Oliphant and Kim Geiger in the Los Angeles Times -- 10/5/09

Proportion of 8-year-olds diagnosed with autism is up 50% in 2 years, CDC says -- That could reflect better detection of the disorder, scientists say, and not necessarily an increase in the number of children affected. Trine Tsouderos in the Los Angeles Times -- 10/5/09

   Immigration

Sharp rise in Chinese arrests at U.S. border -- At least 261 have been arrested this year trying to cross near Tucson. Illegal Chinese immigrants can be big money for smugglers. Sebastian Rotella in the Los Angeles Times -- 10/5/09

   Also..

Matier & Ross: Newsom backs away from parking meter plans -- Looking to avoid Oakland's parking PR debacle, Mayor and gubernatorial candidate Gavin Newsom has told San Francisco traffic officials to back off on plans to plant more meters and stretch the hours when motorists have to feed them. Phillip Matier, Andrew Ross in the San Francisco Chronicle -- 10/5/09

   POTUS 44

Obama quietly tries to shore up Senate support for public option -- The president has backed off from vocally supporting the idea of government-run healthcare, but he's working to build a coalition of supporters. The challenge: Find a version that can pass. Noam N. Levey and Janet Hook in the Los Angeles Times -- 10/5/09

   Beltway

Political Alliances Shift in Fight Over Climate Bill -- The flurry of companies quitting the U.S. Chamber of Commerce is highlighting how the climate-change issue is straining traditional alliances in Washington, as some businesses seek to profit from overhauling the energy market and others try to cut deals to head off tougher regulation. STEPHEN POWER in the Wall Street Journal -- 10/5/09