Since This Morning

Groups say CalPERS, CalSTRS flout Iran divestment law -- Past a state deadline for selling the investments, CalPERS hasn't sold any of its $900 million in holdings in foreign firms working in Iran's defense or energy industries. Marc Lifsher in the Los Angeles Times -- 2/24/10

Students walk out of UC San Diego teach-in on 'Compton Cookout' -- Nine days after an off-campus student party mocked Black History Month, UC San Diego went through a day of protests, tumult and self-examination Wednesday, especially concerning the small number of African American students enrolled at the beachside campus. Larry Gordon in the Los Angeles Times -- 2/24/10

CEQA-exemption bills stalled in committee -- Two bills backed by business groups, with the blessing of Gov. Arnold Schwarzenegger, that would exempt some public and private developments from judicial review stalled Wednesday in the Senate Environmental Quality Committee. Dan Walters SacBee Capitol Alert -- 2/24/10

Director of state hospital that treats child molesters accused of repeatedly raping foster child -- The executive director of Napa State Hospital, a Northern California mental institution whose patients include convicted child molesters, was arrested Wednesday on suspicion of sexually molesting a foster child in his care for more than a decade. Andrew Blankstein and Richard Winton in the Los Angeles Times -- 2/24/10

The League of Extraordinary Budget Sessions -- "The Budget Debate Is Over. Long Live The Budget Debate!" A California version of the rally cry of the perpetual monarchy seems appropriate, as the constitutional clock on the extra special fiscal Armageddon emergency session has expired… and yet here we are still at it. Why? Because the ratified solutions, at this point, only amount to about 10% of the looming deficit. John Myers Capitol Notes weblog -- 2/24/10

Anti-Meg Whitman group changes its name -- In the wake of a complaint from the Meg Whitman campaign, an independent expenditure committee has modified its paperwork with state election officials. Capitol Weekly's Anthony York in the Los Angeles Times -- 2/24/10

Whitman has Overwhelming Lead over Poizner in new Statewide Poll -- Former eBay CEO Meg Whitman has a commanding lead over Insurance Commissioner Steve Poizner in the race for the Republican Gubernatorial nomination according to a new poll conducted by M4 Strategies and released by the Small Business Action Committee today. Joel Fox Fox & Hounds weblog -- 2/24/10

Meg's new ad pushes eBay, stars some interesting friends -- and never mentions GOP -- Take a look at latest Meg Whitman TV spot, which stars a lot of glowing tributes from former eBay folks -- and lots and lots of shots of the eBay logo -- but barely mentions Whitman's own 2010 campaign for California governor. And missing entirely: the word "Republican." Carla Marinucci Chronicle Politics Weblog -- 2/24/10

GOP gaining on Barbara Boxer? -- The nonpartisan Rothenberg Political Report, a leading handicapper of races, reports that it has lost some confidence that U.S. Sen. Barbara Boxer will hold on to her seat. Evan Halper in the Los Angeles Times -- 2/24/10

Arnold Schwarzenegger: Tea parties will 'disappear' -- California Gov. Arnold Schwarzenegger believes that the tea party movement is “not going anywhere.” Schwarzenegger, speaking Tuesday night with Fox News’s Greta Van Susteren, said the grass-roots movement is only “an expression of anger and disappointment.” ANDY BARR Politico -- 2/24/10

Administration warned lawmakers of lower prison savings -- Gov. Arnold Schwarzenegger officials confirmed yesterday that the governor planned to commute the sentences of only about 850 illegal immigrant inmates between now and June 2011, saving only $19 million. Kevin Yamamura SacBee Capitol Alert -- 2/24/10

California prison health care cuts -- a closer look -- Gov. Arnold Schwarzenegger and legislative Democrats are backing an $811 million cut to prison medical costs in 2010-11, contained in a bill the Legislature sent the governor Monday. Democrats have included that cut as part of their $5 billion budget solution. Kevin Yamamura SacBee Capitol Alert -- 2/24/10

= Lawmakers accuse WellPoint, parent company of Anthem Blue Cross, of profiteering -- At a congressional hearing, Democrats say WellPoint has showered executives with perks as it seeks rate hikes of as much as 39% for California policyholders. Richard Simon and Duke Helfand in the Los Angeles Times -- 2/24/10

= Retreats, million-dollar salaries paid for as Anthem Blue Cross sought rate hike -- While Anthem Blue Cross proposed a 39 percent rate increase on thousands of its California customers, its parent company paid 39 of its executives more than $1 million each and spent more than $27 million on 103 lavish executive retreats, congressional investigators say. Rob Hotakainen in the Sacramento Bee -- 2/24/10

= Insurer blames health costs for California rate hikes -- The head of the major health insurer that wants to boost rates in California by up to 39 percent defended her company before Congress on Wednesday, saying the increases would be tough for many customers but were necessitated by soaring medical costs. AP -- 2/24/10

= Weintraub: Is Anthem scenario a sign of things to come? -- The most interesting thing I heard in Anthem-Blue Cross’ testimony Tuesday wasn’t the 39 percent rate increase the company wants to impose on some customers. Or the 700 claims handling violations over the past three years alleged by the insurance commissioner. It was the 25,000 customers that the firm says it has lost from its individual insurance line in California over the past year. Dan Weintraub HealthyCal.org -- 2/24/10

= House votes to repeal antitrust exemption for health insurers -- The vote was 406-19 to repeal the exemption, which has been in place since the end of World War II. The 19 who voted against the repeal are all Republicans. CNN -- 2/24/10

Obama nominates Cal professor to federal appeals court -- President Barack Obama on Wednesday nominated University of California, Berkeley Boalt Hall School of Law Associate Dean and Professor Goodwin Liu to a seat on the 9th U.S. Circuit Court of Appeals. Josh Richman in the Oakland Tribune -- 2/24/10

What will the governor’s next job be? -- You read it here first: Former California GOP spokesman Patrick Dorinson, a communications consultant and author of the Cowboy Libertarian blog, predicts that Gov. Arnold Schwarzenegger’s next job will be that of national green jobs czar, the post held previously held by the fired Van Jones. Lisa Vorderbrueggen Political Blotter weblog -- 2/24/10

ACLU sues city school district and state over L.A. teacher layoffs -- The American Civil Liberties Union and other groups filed a lawsuit Wednesday on behalf of students at three of the city's worst-performing middle schools. Jason Song in the Los Angeles Times -- 2/24/10

Community colleges lose students to budget cuts -- State leaders expect California's community colleges to enroll fewer students this year, despite a record number of high-school graduates and staggering unemployment. Matt Krupnick in the Contra Costa Times -- 2/24/10

Hot yoga guru warms to Jerry Brown -- Attorney General Jerry Brown may not yet be a declared candidate for governor. But one well-known yoga guru has already cast his vote with the once and possibly future governor. Anthony York in Capitol Weekly -- 2/24/10

Underwater equity affects almost half of Fresno home mortgages -- Nearly half of Fresno homeowners with a mortgage owe more than their home is worth. It's a startling number -- nearly double the national rate of 24%. Tim Sheehan Fresno Bee News Blog -- 2/24/10

City of Beverly Hills says 'Miss Beverly Hills' is a fraud, disavows her stance on gay marriage -- Lauren Ashley, a Miss California USA contestant and outspoken opponent of same-sex marriage, claims Beverly Hills as the city she represents. Beverly Hills lays no claim to her whatsoever. Martha Groves in the Los Angeles Times -- 2/24/10

SDG&E may request wildfire damages from ratepayers -- San Diego Gas & Electric Co. may ask state regulators for permission to bill its customers for legal damages stemming from the 2007 wildfires, if the amount the utility owes fire victims exceeds its insurance coverage, financial documents say. ERIC WOLFF in the North County Times -- 2/24/10

Auditor: Orange County spent $842,450 on failed IT plan -- The county has spent more than $800,000 creating a strategic Information Technology plan that leaves out critical information and fails to guide policymakers considering the county’s technological future Jennifer Muir in the Orange County Register -- 2/24/10

• Bicyclists plan ride in downtown L.A. to protest 'unfair treatment' -- The Los Angeles County Bicycle Coalition plans to hold a bike ride Wednesday afternoon to call for justice for victims of hit-and-run accidents and to protest what it says is unfair treatment of cyclists. Kate Linthicum in the Los Angeles Times -- 2/24/10

Cruickshank: Mass Teacher Layoffs Loom Again For California Schools -- With no renewal of federal stimulus funds for education in sight, and with the prospect of further education cuts at the state level, districts are gearing up again to make mass teacher layoffs. Robert Cruickshank Cal Progress Report -- 2/24/10

Guv readies anti-obesity agenda -- Gov. Arnold Schwarzenegger plans to propose eight new measures to fight childhood obesity after he convenes a summit on the issue with former President Bill Clinton today in Los Angeles. Dan Weintraub HealthyCal.org -- 2/24/10

L.A. caravan heads to Boron with supplies for locked-out mineworkers -- Representatives from several unions gathered at Dodger Stadium on Wednesday morning to escort two big rigs filled with food and supplies to workers in Boron locked out of the largest open-pit mine in California. Amina Khan in the Los Angeles Times -- 2/24/10

Van Jones has new jobs, accolades -- Van Jones — the Oakland social- and environmental-justice activist and author who went to Washington last year as President Barack Obama's "green jobs czar," only to be let go in the face of conservative criticism — has joined a White House-friendly think tank in a similar capacity. Josh Richman in the Contra Costa Times -- 2/24/10

   California Policy and Politics This Morning

CalPERS loses $475 million on investment that paid controversial placement agent millions -- CalPERS says it has lost $475 million on an investment that yielded controversial placement agent and former CalPERS board member Alfred Villalobos his biggest single payday. Dale Kasler in the Sacramento Bee -- 2/24/10

Whitman refuses to commit to releasing tax returns -- Republican gubernatorial candidate Meg Whitman demurred Tuesday when asked if she would release her tax returns, as Democrat-backed groups have been demanding that the billionaire former EBay chief do in recent days. Seema Mehta in the Los Angeles Times -- 2/24/10

Schwarzenegger, Whitman back away from ballot measure to cut pension costs -- Despite their full-throated support for cutting public employee pension costs, Gov. Arnold Schwarzenegger and the leading GOP candidate to replace him, Meg Whitman, have backed away from supporting a ballot measure that would do just that. Jon Ortiz in the Sacramento Bee -- 2/24/10

State lawmakers outraged by Anthem's rate hikes -- California lawmakers today said they were astonished by an attempt by Anthem Blue Cross to boost individual insurance premiums by as much as 39 percent at a time when policyholders are struggling to afford health coverage. Robin Hindery AP Victoria Colliver in the San Francisco Chronicle Bobby Caina Calvan in the Sacramento Bee Timm Herdt in the Ventura Star -- 2/24/10

California delays muni bond sale, awaiting Assembly move -- California Treasurer Bill Lockyer’s plan to sell up to $2 billion of tax-free municipal bonds next week has been postponed by the Assembly’s delay in passing a budget-related bill. Tom Petruno in the Los Angeles Times -- 2/24/10

Walters: Two firms battle for Medi-Cal data contract -- Two data processing powerhouses from Texas – subsidiaries of even larger tech titans – are waging legal and political war in Sacramento over a high-dollar contract to process claims for the $49 billion-a-year state program that provides medical care to more than 7 million poor Californians. Dan Walters in the Sacramento Bee -- 2/24/10

California campaign spending provides glimpse of what's to come for nation -- Corporations and unions will soon have their first chance to spend freely on federal campaigns since the Supreme Court lifted restrictions. California has long allowed such spending on state races. Shane Goldmacher in the Los Angeles Times -- 2/24/10

Fabian Nuñez for state treasurer – in 2014? -- The question is whether the paperwork amounts to the first steps in a statewide campaign for the prominent Democratic ex-lawmaker -- or a convenient place to stash his nearly $5 million in campaign cash. Shane Goldmacher in the Los Angeles Times -- 2/24/10

Proposed online sales tax draws criticism -- California lawmakers are eager to harpoon the great white whale that is Amazon.com to force it to pay sales tax on every HDTV and Kindle it sells here. But those efforts could ensnare scores of smaller fish: mom-and-pop Internet businesses that rely on Amazon and other e-tailers for their livelihood. Carolyn Said in the San Francisco Chronicle -- 2/24/10

Herdt: Legislators: Don't raise taxes, but do collect them -- Just about every lawmaker in Sacramento has now agreed that general tax increases will be off the table this spring and summer as California attempts to dig its way out of a $20 billion budget hole. But better collection of existing taxes? That’s a different story. Timm Herdt in the Ventura Star -- 2/24/10

Brown changes ballot language on Prop. 17 -- Under pressure from consumer advocates who say an insurance initiative would raise rates for thousands of state drivers, Attorney General Jerry Brown's office has submitted new language to describe Proposition 17 on the June ballot. Carla Marinucci in the San Francisco Chronicle -- 2/24/10

GOP lawmaker's bill targets 'sanctuary cities' --- A Republican state lawmaker has introduced a bill seeking to bar "sanctuary cities" from sending suspected illegal immigrants with criminal backgrounds to other counties. Stephen Wall in the Inland Daily Bulletin -- 2/24/10

Trio of Lawmakers Drove Quest to Probe Auto Recall -- But it's the oversight committee's ranking Republican, Rep. Darrell Issa of California, who has been the most forceful in goading Toyota so far. NEIL KING JR. and JOSH MITCHELL in the Wall Street Journal -- 2/24/10

CalBuzz: California Reform Movement 2010: R.I.P. -- Calbuzz is way overdue for a rant about the rich irony of the once-promising reform campaign to convene a state constitutional convention ignobly sinking because of…a lack of money. Really? Jerry Roberts and Phil Trounstine CalBuzz -- 2/24/10

   Economy - Jobs

Lehman's Ghost Haunts California -- San Mateo, a scenic swath of peninsula between the Pacific Ocean and San Francisco Bay, saw $155 million evaporate when Lehman Brothers went bankrupt in September 2008. On top of deep budget cuts brought on by California's fiscal crisis, the loss on Lehman securities means San Mateo's 735,000 residents are taking a hit. JOHN CARREYROU in the Wall Street Journal -- 2/24/10

East Bay firms test IPO waters -- The market for first-time sales of stock to the public has begun to perk up for some East Bay companies — but it's not clear whether investors will be eager to sample the new offerings. George Avalos in the Oakland Tribune -- 2/24/10

   Education

L.A. teachers gain control of 22 campuses in reform effort -- In an unlikely victory, groups of teachers, rather than outside operators, will run the vast majority of 30 campuses under a controversial school reform effort, the Los Angeles Board of Education decided Tuesday. Howard Blume in the Los Angeles Times -- 2/24/10

Fensterwald: What works in middle schools -- Districts aiming to raise scores of middle school students shouldn’t count on hiring a messianic principal or jiggling the grade configuration of a school or making vague commitments to excellence – or any single tie-it-in-a-bow policy. John Fensterwald educatedguess.org -- 2/24/10

Elk Grove Unified to open a virtual school -- This August a few hundred students in the Elk Grove Unified School District will have their school year delivered to their doorstep in a giant UPS box. The K-12 students will be part of the district's first-ever virtual school. Diana Lambert in the Sacramento Bee -- 2/24/10

   Environment

Green energy firm must deal with 'million dollar tortoises' -- Oakland’s BrightSource Energy is a green tech startup backed by energy industry heavyweights and has a modest political operation of its own. Lance Williams California Watch -- 2/24/10

Turf grass not always a 'green' thing, study shows -- For the first time, scientists compared the amount of greenhouse gases absorbed by ornamental turf grass to the amount emitted in the irrigation, fertilizing and mowing of the same plots. It turns out keeping a lawn is not good for Mother Earth. Margot Roosevelt in the Los Angeles Times -- 2/24/10

L.A. County Flood Control District faces state fines -- A state Regional Water Quality Control Board recommends nearly $275,000 in fines after the district allegedly allowed bacterial pollution to flow into the harbor at Marina del Rey from 2007 to 2009. Patrick J. McDonnell in the Los Angeles Times -- 2/24/10

Proposed rules could make smog check less expensive and time-consuming for most motorists -- Millions of California motorists could soon be saying so long to the iconic tailpipe test. Quicker and cheaper smog checks are being considered under a proposal unveiled Tuesday by state regulators. Paul Rogers in the San Jose Mercury -- 2/24/10

Public transit may take another budget hit -- Bay Area public transit operators have complained bitterly that they've had to raise fares and cut service for two years, in part because state lawmakers kept taking transit money to address state budget woes. Denis Cuff in the Oakland Tribune -- 2/24/10

Company has plan for small reactors -- A San Diego defense contractor has come up with an early design for a compact commercial nuclear reactor that aims to generate power using the nation’s stockpile of spent nuclear fuel and other nuclear waste. Mike Freeman in the San Diego Union-Trib -- 2/24/10

   Health Care

Medicare faces cuts next week without congressional action -- Unless Congress steps in this week, Medicare will begin paying doctors less, which could make it harder for seniors to find doctors willing to see them. James Rufus Koren in the Inland Daily Bulletin -- 2/24/10

   Also..

Current laws not stopping illegal gun epidemic -- Since the start of the year, Oakland police have confiscated more than 200 illegal guns during routine traffic stops and planned police arrests. In Richmond, police seized more than 25 guns in vehicles during routine traffic stops in January alone. Chip Johnson in the San Francisco Chronicle -- 2/24/10

Ridely-Thomas' office to be evaluated -- More than two months after a flap erupted over Los Angeles County Supervisor Mark Ridley-Thomas' plans to spend $700,000 on an office remodel, a firm has been hired to assess whether the project is justified. Troy Anderson in the Los Angeles Daily News -- 2/24/10

Why keep this man locked up? -- Letting a terminally ill three-striker with a history of mental problems die at home would not only be compassionate, it would save taxpayer money. Steve Lopez in the Los Angeles Times -- 2/24/10

Alameda County: Pleas for reprieve on welfare -- Hundreds of people on the verge of losing their Alameda County general assistance benefits pleaded with county supervisors Tuesday to give them more time on the public aid. Matthai Kuruvila in the San Francisco Chronicle -- 2/24/10

State funds to foster care group homes may rise -- California must substantially increase payments to foster care group homes to make up for years of shortfalls in funding to care for neglected and abused children, a federal judge has ruled. Bob Egelko in the San Francisco Chronicle -- 2/24/10

Obama zeros in on law professor for 9th Circuit post -- UC Berkeley's Goodwin Liu will be nominated to the U.S. 9th Circuit Court of Appeals, The Times has learned. Though he will face opposition from conservatives, he has admirers in that camp as well. Christi Parsons in the Los Angeles Times -- 2/24/10

Cal Expo faces fairground decision: Sell or stay? -- After 40 years of state fairs at now faded and outdated Cal Expo, should the state sell the site in hopes of scoring a deal on a modern fairground across town? Tony Bizjak in the Sacramento Bee -- 2/24/10

   Immigration

Schwarzenegger to commute sentences for fewer illegal immigrant inmates, aides say -- Gov. Arnold Schwarzenegger's administration said Tuesday that the governor will not commute the sentences of thousands of illegal immigrant inmates even though majority Democrats sent him a budget bill this week that assumes he will do so. Kevin Yamamura in the Sacramento Bee -- 2/24/10

   POTUS 44

Obama Dines With Business Leaders -- He may be at odds with big business on a number of matters, but that doesn’t mean he can’t eat with them. President Obama invited some of the country’s top business executives to dinner at the White House on Tuesday night. PETER BAKER in the New York Times -- 2/24/10

Exclusive: White House privately plots 2012 campaign run -- President Barack Obama’s top advisers are quietly laying the groundwork for the 2012 reelection campaign, which is likely to be run out of Chicago and managed by White House deputy chief of staff Jim Messina, according to Democrats familiar with the discussions. MIKE ALLEN Politico -- 2/24/10

   Beltway

Wall Street shifting political contributions to Republicans -- Commercial banks and high-flying investment firms have shifted their political contributions toward Republicans in recent months amid harsh rhetoric from Democrats about fat bank profits, generous bonuses and stingy lending policies on Wall Street. Dan Eggen and Tomoeh Murakami Tse in the Washington Post -- 2/24/10

Democrats on track to revive healthcare overhaul -- Party lawmakers, energized by President Obama's blueprint and summit plans, are getting behind the strategy of passing the Senate's bill and using budget reconciliation to prevent a GOP filibuster. Noam N. Levey and Janet Hook in the Los Angeles Times -- 2/24/10

For Dems and GOP alike, optics are everything -- The GOP’s first demand for Thursday’s health care summit was simple. No podium. GLENN THRUSH & CARRIE BUDOFF BROWN Politico -- 2/24/10