Updates Since This Morning

Bell's Rizzo gave $400,000 in city loans to two businesses without council approval -- One of the loans, $300,000 given to a local Chevrolet dealer in 2008, is the subject of a court fight because the dealer went out of business within a year of getting the loan, having repaid nothing. Jeff Gottlieb, Richard Winton and Ruben Vives in the Los Angeles Times -- 8/31/10

Oil rigs could be converted into reefs for fish -- Offshore oil drilling rigs due to be retired may be converted into artificial reefs for fish and other marine life under legislation winning unanimous Assembly approval today. Dan Walters SacBee Capitol Alert -- 8/31/10

Compassionate-release bill sent to Schwarzenegger -- The Senate voted 21-14 today to send Gov. Arnold Schwarzenegger a bill to create a compassionate release and parole program for prisoners who are permanently medically incapacitated, need 24-hour care, and are not serving sentences of death or life without parole. Dan Smith SacBee Capitol Alert -- 8/31/10

Boxer lays out economic plans in San Francisco speech -- On the eve of her only scheduled debate with the Republican challenger who is nipping at her heels, U.S. Sen. Barbara Boxer said she doesn't worry about her re-election chances. Josh Richman Political Blotter weblog -- 8/31/10

More from Barbara Boxer’s San Francisco appearance -- It was largely a friendly crowd, as one might expect from San Francisco, and the first question was about how President Barack Obama could be convinced to listen more to the advice of Nobel laureate economist and columnist Paul Krugman. Josh Richman Political Blotter weblog -- 8/31/10

Budget debate done, spending plan nowhere in sight -- "What we are doing is not real," said Sen. Roy Ashburn (R-Bakersfield). "This budget will not pass." Evan Halper in the Los Angeles Times -- 8/31/10

Anti-pension spiking bill wins final approval -- A much-amended bill aimed at "pension spiking" by state and local government employees was sent to Gov. Arnold Schwarzenegger today. Dan Walters SacBee Capitol Alert -- 8/31/10

BPA bill fails to garner enough votes for passage -- A major environmental proposal that chemical companies opposed -- Senate Bill 797 by Fran Pavley, D-Agoura Hills -- has failed to muster enough votes for passage today. Susan Ferriss SacBee Capitol Alert -- 8/31/10

Schwarzenegger gets bill cracking down on paparazzi -- The Assembly voted Tuesday to crack down on paparazzi photographers who harass celebrities, turning back criticism that it would be an illegal restriction on free press rights. Dan Walters SacBee Capitol Alert -- 8/31/10

Bill bans use of credit reports in hiring decisions -- Employers would be prohibited from using credit reports to decide whom to hire under legislation winning final approval Tuesday. Dan Walters SacBee Capitol Alert -- 8/31/10

Budget: One down, three to go -- State legislators held a marathon of floor "drills" Tuesday morning to make clear they are ready to take action on the budget. Problem is, there is no bipartisan consensus on a spending plan. So Tuesday's debate is pretty much for show. Anthony York and Evan Halper in the Los Angeles Times -- 8/31/10

Massage parlor bill goes to Schwarzenegger -- Two law enforcement members would be added to the quasi-public commission that regulates massage parlors under heavily lobbied legislation that was sent to Gov. Arnold Schwarzenegger today. Dan Walters SacBee Capitol Alert -- 8/31/10

New effort emerges on horse racing bill -- A new version of high-stakes legislation targeting horse racing wagering is moving through the Capitol, with provisions that include a two-year delay in a controversial form of betting not currently allowed to California. Malcolm Maclachlan in Capitol Weekly -- 8/31/10

La Opinión: Dream Act Hanging by a Thread -- Another measure that was still on the tightrope is the SB1460, the Act of the California Dream (Dream Act) that would give financial aid to undocumented students. Araceli Martinez La Opinión -- 8/31/10 Translated by Google Translate (good, but not perfect).

McCain, Scott Brown raising cash for Carly Fiorina Senate bid -- Republican Senate candidate Carly Fiorina is getting a hand from her could-be GOP colleagues in various forms this week. Torey Van Oot SacBee Capitol Alert -- 8/31/10

‘Open carry’ ban bill could pass later today -- State Senate Democrats have been scrambling to get enough votes to pass a bill to criminalize the “open carry” of unloaded handguns in public places. Josh Richman Political Blotter weblog -- 8/31/10

Quinn: The Real Jerry Brown Issue -- Meg Whitman is getting it wrong. Her attacks on Jerry Brown are sporadic, unfocused and in many cases just downright untrue. She is trying to define him as a traditional tax and spend liberal, but that dog won't hunt. Tony Quinn Fox & Hounds weblog -- 8/31/10

FPPC chief urges overhaul of Political Reform Act -- More than three decades after it went into effect, California’s campaign finance law needs to be updated and reworked, the state’s political watchdog told a newly convened advisory panel. Jennifer Chaussee in Capitol Weekly -- 8/31/10

California highest in federal spending, low in per capita outlays -- The federal government spends more money in California than any other state, thanks to its having nearly 12 percent of the nation's population, but California's per capita federal spending is one of the nation's lowest, according to an exhaustive new Census Bureau report. Dan Walters SacBee Capitol Alert -- 8/31/10

Assembly rejects foreclosure bill -- A bill that would have created new rules for the foreclosure process failed in the Assembly on Monday for the second time in less than a week and is dead. Jim Miller in the Riverside Press -- 8/31/10

Hiltzik: Airline fees keep arriving, nonstop -- American Airlines' latest nuisance fee is for passengers who want to sit in the first few rows of coach. The service you're buying with the basic fare is shrinking all the time. Michael Hiltzik in the Los Angeles Times -- 8/31/10

   California Policy and Politics This Morning

Legislators raise more than $380k in days before session closes -- Sitting members of the California Legislature have raised more than $380,000 during the last five days, as lobbyists and special interest groups scramble to push their bills through the Assembly and Senate before this year's legislative session draws to a close. Chase Davis California Watch -- 8/31/10

Meg Whitman serves jury duty for a day -- Republican gubernatorial candidate Meg Whitman took a short break from the campaign trail this afternoon to clock in some jury duty at the Superior Court in Redwood City, according to her campaign. Jack Chang SacBee Capitol Alert Seema Mehta and Michael J. Mishak in the Los Angeles Times Ken McLaughlin in the San Jose Mercury Carla Marinucci Chronicle Politics Weblog -- 8/31/10

Lawmakers approve bills on pension spiking, slavery, sick prisoners -- The California Assembly voted to release extremely sick prison inmates, a move that would pass the cost of their medical care on to the federal Medicare program, saving the state an estimated $42 million a year. Anthony York in the Los Angeles Times -- 8/31/10

Looming tax cut debate already ripples through Boxer-Fiorina race -- A looming debate in Congress over whether to continue income tax cuts for the wealthy is already unfolding in California's Senate race, highlighting a stark ideological contrast between Democratic Sen. Barbara Boxer and the Republican trying to unseat her, former Hewlett-Packard CEO Carly Fiorina. Mike Zapler in the San Jose Mercury -- 8/31/10

Schwarzenegger: Politicians, parties not interested in political reform -- Gov. Arnold Schwarzenegger said this afternoon that many politicians and the state's political parties have little interest in political reform, though the Republican governor said he does. David Siders SacBee Capitol Alert -- 8/31/10

   Budget

Budget votes won’t lead to anything, anytime soon -- After weeks of inaction, get ready for a flurry of activity Tuesday on the state budget. And then more inaction. Dan Weintraub HealthyCal.org -- 8/31/10

CalBuzz: Ross Baseball Budget Plan: Now More Than Ever -- At first glance, the Legislature’s scheduled votes on competing Democrat and Republican budget plans in both houses Tuesday looks like just one more skirmish in the endless partisan war over state finances. Jerry Roberts and Phil Trounstine CalBuzz -- 8/31/10

   Economy - Jobs

Walters: California pension overhaul up in the air -- Arnold Schwarzenegger has been beating the drums for public pension reform for months, and the governor insists he won't sign a budget package that doesn't include it. Dan Walters in the Sacramento Bee -- 8/31/10

Sacramento County plans to cut jobs, shift funds to fix deficit -- Sacramento County officials are proposing to cut more than a dozen county health and social service workers and dip into one-time funds to balance the budget in response to court orders blocking other cuts the Board of Supervisors tried to make in June. Robert Lewis in the Sacramento Bee -- 8/31/10

   Education

UC retirement funds face a shortfall of more than $20 billion, report says -- A panel recommends increasing contributions by employees, raising the retirement age for new hires and reducing some benefits. Larry Gordon in the Los Angeles Times -- 8/31/10

L.A. Unified moves to close charter school over alleged misuse of $2.7 million -- An audit finds that the founding principal at NEW Academy Canoga Park allegedly misused or misappropriated money, depositing funds into an Ameritrade account and claiming payments to a nonexistent company. Howard Blume in the Los Angeles Times -- 8/31/10

Fensterwald: Scholars: Don’t judge teachers on test scores -- The same day that the Los Angeles Times went public with an online database rating teachers’ effectiveness based on test scores, a Washington-based nonpartisan think tank released a paper strongly cautioning against such a use. John Fensterwald educatedguess.org -- 8/31/10

CSUs offer tough economics lesson -- Fee increases add to students' struggles as semester begins. Kevin Butler in the Long Beach Press -- 8/31/10

County gives jerseys with tracking microchips to preschoolers -- On the first day of preschool in Richmond, students received crayons, writing paper and tracking microchips embedded into jersey tops. Corey G. Johnson California Watch -- 8/31/10

   Environment

New California law expands carpool lane use -- Gov. Arnold Schwarzenegger signed a measure Monday allowing tens of thousands more Californians with environmentally friendly cars to drive solo in carpool lanes, while state lawmakers moved closer to approving reforms inspired by the eye-popping salaries of Bell city officials. Jack Dolan and Patrick McGreevy in the Los Angeles Times -- 8/31/10

   Health Care

Insurance oversight advances but rate regulation stalls -- The Assembly on Monday approved legislation to toughen oversight of health insurance rate hikes but the Senate rejected, at least for now, a measure to require state approval before companies can increase their premiums. Dan Weintraub HealthyCal.org -- 8/31/10

   Also..

'Chelsea's Law' on sex offenders among bills sent to Schwarzenegger -- Legislation to toughen penalties against sex offenders in honor of Chelsea King, a murdered 17-year-old San Diego teen, cleared its final legislative hurdle Monday and was sent to Gov. Arnold Schwarzenegger. Jim Sanders and Susan Ferriss in the Sacramento Bee -- 8/31/10

Former CalPERS board member refuses to answer questions -- He refused to say whether he accepted any gifts while he served on the board of CalPERS. He wouldn't even say how long he held the post. Dale Kasler in the Sacramento Bee -- 8/31/10

Surfer Statue Stokes Gnarly Controversy in California -- The botanical society in this beachfront town thought it was honoring surfers when it spent $120,000 to erect a 16-foot tall statue of one riding a wave. Instead, it inspired a wave of humiliation for the hapless bronze dude. CONOR DOUGHERTY in the Wall Street Journal -- 8/31/10

   POTUS 44

Obama speech on Iraq has risks -- President Obama is promoting the decision to end the U.S. combat mission in Iraq on Tuesday as a fulfillment of his campaign promise to draw the war to a close. Anne E. Kornblut in the Washington Post -- 8/31/10

Saunders: Obama isn't being smart on Arizona -- The latest CBS poll found that 59 percent of Americans view Arizona's SB1070, the immigration bill that allows Arizona to prosecute immigration violations, as "just right," while another 14 percent think the bill doesn't go far enough. Debra J. Saunders in the San Francisco Chronicle -- 8/31/10

   Beltway

Glenn Beck may be unlikely leader for conservative Christians -- A few weeks before organizing a massive rally on the Mall that had the feel of a religious revival, Glenn Beck sought the blessing of some of the country's most prominent conservative Christian leaders. Michelle Boorstein in the Washington Post -- 8/31/10

Republicans have biggest lead ever on question of which party voters would support for Congress, poll shows -- Pollsters offered some more glum news for Democrats on Monday night: Republicans have their biggest lead ever on the question of which party voters would support for Congress. Gallup's "generic ballot" - a staple of election prognostication - shows Republicans with a double-digit advantage. Jon Cohen in the Washington Post -- 8/31/10