Updates Since This Morning

State leaders reach budget agreement -- Gov. Arnold Schwarzenegger and top lawmakers said Friday night that they have reached a deal to close the state’s $19.1-billion deficit. Shane Goldmacher in the Los Angeles Times JUDY LIN AP Kevin Yamamura in the Sacramento Bee John Myers Capitol Notes weblog -- 10/1/10

Joe Shumate, political consultant to Pete Wilson, dies -- Joe Shumate, the senior political strategist for Gov. Pete Wilson, was found dead Friday in his Sacramento apartment. Anthony York in the Los Angeles Times Carla Marinucci Chronicle Politics Weblog Amy Chance SacBee Capitol Alert -- 10/1/10

Podcast: Meg and the Maid -- Consider this to be a podcast focused on three big questions: what actually happened? Who orchestrated the revelation of all of this? And how did the political candidate at the center of it all react? John Myers Capitol Notes weblog -- 10/1/10

Meg Whitman's spaghetti strategy or let's see what sticks -- Sometimes in politics, when you're in a hole, it's not enough to stop digging. If it's deep enough, you've got to either start filling it in or convince someone else to join you in the mud at the bottom. John Wildermuth Chronicle Politics Weblog -- 10/1/10

Controller: State risks $2.7 billion more in unpaid bills without budget -- As the California budget impasse enters its fourth month, State Controller John Chiang's office has estimated that he will be legally unable to pay another $2.7 billion in state bills in October with a spending plan. Shane Goldmacher in the Los Angeles Times -- 10/1/10

Schwarzenegger signs bill reducing offense for marijuana possession -- Gov. Arnold Schwarzenegger opposes Proposition 19, which would legalize the recreational use of marijuana, but he offered a consolation Thursday by signing a bill that would downgrade possession of an ounce or less from a misdemeanor to an infraction. Patrick McGreevy in the Los Angeles Times -- 10/1/10

La Opinión: Whitman case war breaks out over Latinos -- A day after a former housekeeper Meg Whitman Republican candidate accused her of having fired after he learned he was undocumented, the Union of Workers of the Services ( SEIU ) launched an aggressive campaign of 5 million dollars to attract the Latino vote to Democratic candidate Jerry Brown via television, radio, internet and letters. Araceli Martínez Ortega La Opinión -- 10/1/10 Translated by Google Translate (good, but not perfect).

New Barbara Boxer ad: all about outsourcing -- Surprise! Incumbent Senate Democrat Barbara Boxer's new ad is about outsourcing, scheduled for San Francisco and Los Angeles media markets. Carolyn Lochhead Chronicle Politics Weblog -- 10/1/10

New Brown ad hits Whitman on Goldman Sachs, eBay -- Democratic gubernatorial candidate Jerry Brown is airing a new TV ad attacking Republican Meg Whitman for her dealings with Goldman Sachs and the salary she received at eBay. David Siders SacBee Capitol Alert -- 10/1/10

Sarah Palin coming to California to campaign for GOP -- It won’t just be Democratic big guns campaigning in California in the lead-up to November’s election. On the same October weekend that President Clinton will be in state stumping for Jerry Brown and Gavin Newsom, Sarah Palin will rally Republicans at a fund-raiser in Anaheim. Kate Linthicum in the Los Angeles Times -- 10/1/10

Schwarzenegger mocks legislators in vetoes -- It might not quite be last year’s stunt, in which Gov. Arnold Schwarzenegger slipped the phrase "F--- You" along the left margin of a veto message, but the governor has again taken to using the sharp edge of his veto pen to needle the Legislature. Shane Goldmacher in the Los Angeles Times -- 10/1/10

Schwarzenegger sends acrostic message to Ammiano -- again -- What a difference a year can make. Gov. Arnold Schwarzenegger made headlines last year by killing legislation by Assemblyman Tom Ammiano with an acrostic veto message that started with "F" and ended with "you."This year, all is forgiven. Jim Sanders SacBee Capitol Alert Shane Goldmacher in the Los Angeles Times -- 10/1/10

Law sets limits on pot shops near schools -- Pot shops will have to keep their distance from schools in California after Gov. Arnold Schwarzenegger signed a bill Thursday in response to the proliferation of medical marijuana dispensaries. Patrick McGreevy in the Los Angeles Times -- 10/1/10

   California Policy and Politics This Morning

Nannygate: GOPer Meg Whitman's got new conditions on taking lie detector test -- Republican gubernatorial candidate Meg Whitman, who said today that she will "absolutely" take a lie detector test to prove her side of the story regarding the hiring of undocumented immigrant Nicky Diaz, appears to have stepped back from that claim. Carla Marinucci Chronicle Politics Weblog -- 10/1/10

Meg Whitman says she'd submit to polygraph -- Meg Whitman launched a forceful effort Thursday to regain control of her campaign for governor, pledging to take a lie detector test if necessary to prove that she and her husband were unaware they had employed an illegal immigrant housekeeper for nine years until the woman confessed her status in 2009. Seema Mehta and Phil Willon in the Los Angeles Times Carla Marinucci in the San Francisco Chronicle Jack Chang in the Sacramento Bee Ken McLaughlin and Steven Harmon in the San Jose Mercury Michael R. Blood and Juliet Williams AP Martin Wisckol in the Orange County Register TAMARA AUDI and MIRIAM JORDAN in the Wall Street Journal ADAM NAGOURNEY in the New York Times -- 10/1/10

Walters: Whitman's campaign on the edge -- With Democrat Jerry Brown and Republican Meg Whitman running neck and neck for governor, political junkies were waiting for an "X-factor" – an unplanned or unexpected event that would alter campaign dynamics. Dan Walters in the Sacramento Bee -- 10/1/10

CalBuzz: Character Question: Meg, Nicky & the Smoking Letter -- After 19 months of mass market campaigning inside the most luxurious cocoon money could buy, Meg Whitman on Thursday suddenly found herself in the political free-fire zone. Jerry Roberts and Phil Trounstine CalBuzz -- 10/1/10

Harsh campaign spotlight on Whitman's husband -- For a political spouse who purposely chose to maintain a low profile during the campaign, Meg Whitman's neurosurgeon husband, Griffith Harsh, has managed to play a central role in the two biggest controversies that have dogged her candidacy. Bruce Newman in the San Jose Mercury -- 10/1/10

Gloria Allred, who called out Meg Whitman, is master of media events -- She was the woman who challenged the all-male membership rules of the Beverly Hills Friars Club by striding into a steam room full of naked men, holding a tape measure and singing Peggy Lee's "Is That All There Is?" Peter Hecht in the Sacramento Bee -- 10/1/10

Brown campaign aware of housekeeper rumors two weeks ago, reporter says -- Republican gubernatorial nominee Meg Whitman blasted Democrat Jerry Brown today for what she said is his campaign's involvement in the controversy involving Whitman's former housekeeper. David Siders SacBee Capitol Alert -- 10/1/10

Many in California face domestic worker verification issue, expert says -- The revelation that Meg Whitman had employed an illegal immigrant for nine years as a housekeeper has roiled the gubernatorial race and placed immigration again squarely in the state spotlight. Stephen Magagnini and Darrell Smith in the Sacramento Bee -- 10/1/10

Union ad to highlight Whitman’s undocumented former employee -- California's largest labor union is using the controversy over Meg Whitman's undocumented housekeeper to drive a wedge between the Republican gubernatorial nominee and Latino voters. Michael J. Mishak in the Los Angeles Times -- 10/1/10

Fiorina, Boxer both say they never hired domestic help -- In the wake of questions about Meg Whitman's employment of an illegal immigrant as a housekeeper, Republican Senate candidate Carly Fiorina, meeting with a group of Stanford students Thursday in Palo Alto, said she has never hired domestic workers and uses only a maid service. Karl Kahler in the San Jose Mercury -- 10/1/10

Ad Watch: Brown attack wrongly assumes Whitman would cut schools -- Democratic gubernatorial candidate Jerry Brown is running a TV ad attacking the Republican nominee, Meg Whitman, for her proposal to eliminate the capital gains tax, while also reminding voters that she is personally wealthy. David Siders in the Sacramento Bee -- 10/1/10

Prop. 23 could kill state's budding green industry, mayor's keynote speaker warns -- The next global industrial revolution will be green, and Sacramento and California are well-positioned to benefit from the coming boom, Pulitzer Prize-winning journalist Thomas Friedman said Thursday. Rick Daysog in the Sacramento Bee -- 10/1/10

Would Prop. 19 change how state colleges deal with marijuana? -- How would California's controversial ballot measure to legalize recreational marijuana use affect the way the state's universities deal with pot on campus? Erica Perez California Watch -- 10/1/10

State Senate special election could delay results in races around region -- It could take as long as two weeks after the Nov. 2 election to learn the outcome of tightly contested local races in Sacramento County, including the sheriff's race and Arden Arcade cityhood, a top elections official said Thursday. Loretta Kalb in the Sacramento Bee -- 10/1/10

Aleman: Postmus devised scheme to bilk taxpayers -- Before Bill Postmus was elected San Bernardino County assessor, he discussed with close friend and confidant Adam Aleman an elaborate scheme to run a political operation out of the office at taxpayer expense, according to court testimony Thursday. Joe Nelson in the Inland Daily Bulletin -- 10/1/10

Lots of cash and little scrutiny in city redevelopment -- City agencies meant to improve blighted areas are rife with problems that cost the public millions. Kim Christensen and Jessica Garrison in the Los Angeles Times -- 10/1/10

   Schwarzenegger

Schwarzenegger signs landmark health care legislation -- Gov. Arnold Schwarzenegger has signed two key health bills that make California the first in the nation to begin establishing its own health insurance exchange - a key component of the federal health overhaul law intended to widen access to health coverage among the country's millions of uninsured. Bobby Caina Calvan in the Sacramento Bee -- 10/1/10

Schwarzenegger vetoes bills on pension limits -- Gov. Arnold Schwarzenegger late Thursday vetoed two bills introduced in response to the city of Bell pay scandal: a measure barring employment contracts with automatic pay raises and legislation that would cap pensions. Patrick McGreevy and Jack Dolan in the Los Angeles Times -- 10/1/10

Schwarzenegger signs pension fund transparency bill -- Prompted by a scandal involving CalPERS, it would require that 'placement agents' who make pension fund deals with investment managers register as state lobbyists. Marc Lifsher in the Los Angeles Times -- 10/1/10

Schwarzenegger signs two anti human-trafficking bills -- Gov. Arnold Schwarzenegger signed a bill today that requires major retailers and manufacturers doing business in California to show what steps they take to ensure that their product supply chains are free of slave labor and human trafficking. Susan Ferriss SacBee Capitol Alert -- 10/1/10

Schwarzenegger signs law to boost umbilical cord blood supply -- California's birth certificate fees will rise by $2 to $16 to help finance a pioneering effort to get families to collect and bank newsborns' umbilical cord blood. Susan Ferriss SacBee Capitol Alert -- 10/1/10

Students entitled to free, fresh drinking water under new law -- Water, anyone? California schools will be required to provide free, fresh drinking water during pupil meal times, beginning in July 2011, under legislation signed today by Gov. Arnold Schwarzenegger. Jim Sanders SacBee Capitol Alert -- 10/1/10

California Extends Foster-Care Help to Young Adults -- California Gov. Arnold Schwarzenegger signed a bill Thursday extending foster-care support to young adults between the ages of 18 and 21, a move cited as a bellwether by child-welfare advocates. VAUHINI VARA in the Wall Street Journal -- 10/1/10

No fudging Veterans Day for three-day weekend, new law says -- Gov. Arnold Schwarzenegger has signed legislation barring state agencies from altering work schedules to ensure that employees get a three-day weekend to celebrate Veterans Day. Jim Sanders in the Sacramento Bee -- 10/1/10

   Budget

Lack of state budget might force preschool closures in Redlands -- Redlands Day Nursery and First Steps Child Development may have to close their doors if the Legislature continues at a stalemate much longer, said Redlands Day Nursery Program Director Deborah Wasbotten. Chantal M. Lovell in the San Bernardino Sun -- 10/1/10

Tobar: An SOS to state leaders -- A shipboard act of mutiny comes in handy in South Los Angeles. Hector Tobar in the Los Angeles Times -- 10/1/10

   Economy - Jobs

Stimulus critic Lungren won $30 million for Rancho Cordova company -- Rep. Dan Lungren likened the federal stimulus plan to a "spending spree which will add to a growing mountain of debt," but he helped secure $30 million from the program for a local company whose leaders later contributed to his campaign. Torey Van Oot in the Sacramento Bee -- 10/1/10

Mortgage modification marathon draws masses to Los Angeles -- About 30,000 are expected to seek help from counselors and bank representatives at the 100-hour event at the Los Angeles Convention Center put on by the Neighborhood Assistance Corp. of America. Alejandro Lazo in the Los Angeles Times -- 10/1/10

Judge sides with unions on Lincoln's Birthday, Columbus Day -- A Sacramento Superior Court judge has ruled that Gov. Arnold Schwarzenegger's and the Department of Personnel Administration's refusal to recognize Lincoln's Birthday and Columbus Day as state paid holidays violated collective bargaining laws. Jon Ortiz in the Sacramento Bee -- 10/1/10

LA County epicenter of mortgage fraud -- As more Americans lost their homes to foreclosure last month than at any time in history, Los Angeles County has become the "national epicenter of mortgage fraud," federal officials said Thursday. Troy Anderson in the Los Angeles Daily News -- 10/1/10

   Education

Fensterwald: Governor signs Sept. 1 start for kindergarten -- California has now joined nearly every state in requiring that children be five years old when starting kindergarten. John Fensterwald educatedguess -- 10/1/10

Fensterwald: Green-tech academies vetoed -- “Green jobs” in conservation and alternative energy will require workers exposed to careers and trained in emerging technologies. But a bill to create 97 green high school career-tech academies was killed last night by Gov. Schwarzenegger. John Fensterwald educatedguess -- 10/1/10

Major case to visit Fresno with California Supreme Court -- For the first time in eight years, the California Supreme Court is coming to Fresno -- and it's bringing along a high-profile case that could affect college students across the country. Pablo Lopez in the Fresno Bee -- 10/1/10

   Environment

Two more solar power plants get the green light -- In a race for federal stimulus money, California regulators have approved two more large-scale solar power plants. Susanne Rust California Watch -- 10/1/10

   Immigration

Immigration debate takes to L.A. stages -- In the new 'Detained in the Desert' and the old 'La Victima,' the plays revolve around current and historic views on undocumented workers and residents and their experiences in the U.S. Reed Johnson in the Los Angeles Times -- 10/1/10

   Also..

Bay Area leaders say PG&E falling short in providing information about gas pipeline risks -- Nearly two weeks after PG&E made public the list of its Top 100 highest-risk natural gas pipelines in the Bay Area and promised to share information about them with cities, the company has yet to provide numerous basic details to local officials. Paul Rogers and Joshua Melvin in the San Jose Mercury -- 10/1/10

PG&E electric grid has problems, too -- In June 2009, a power line from the 1920s melted inside an underground Pacific Gas and Electric Co. vault in San Francisco's Tenderloin neighborhood, starting a fire that shot flames 30 feet into the air and knocked out power to 8,600 customers. David R. Baker in the San Francisco Chronicle -- 10/1/10

Lawmakers step back from push for full disclosure in child deaths -- More than two years ago, California lawmakers decided the death of a child from abuse was such a grave affront that the public should know about each case in detail. Ryan Gabrielson California Watch -- 10/1/10

State targets dozens of small restaurants without workers' comp insurance -- On a single day last month, California's workplace regulators found labor violations at nearly half of the restaurants they inspected – almost all of them for failing to provide workers' compensation insurance. Deia de Brito California Watch -- 10/1/10

Obsessed With Genes (Not Jeans), This Teen Analyzes Family DNA -- In many ways, Anne West is a typical 17-year-old California teenager. She wears her hair long. She likes to hang out with her friends. She went to the prom. She is also analyzing her family's genome. AMY DOCKSER MARCUS in the Wall Street Journal -- 10/1/10

TARP Bailout to Cost Less Than Once Anticipated -- Even as voters rage and candidates put up ads against government bailouts, the reviled mother of them all — the $700 billion lifeline to banks, insurance and auto companies — will expire after Sunday at a fraction of that cost, and could conceivably earn taxpayers a profit. JACKIE CALMES in the New York Times -- 10/1/10

Pot farmers find L.A.'s mountains and canyons to their liking -- The value of plants confiscated in broad areas across the region has soared to $130 million, nearly three times last year's haul. Andrew Blankstein in the Los Angeles Times -- 10/1/10

Complaints allege two on high speed rail board have conflicts -- Activists cite Anaheim Mayor Curt Pringle and MTA board member Richard Katz, who have denied any improprieties. Dan Weikel in the Los Angeles Times -- 10/1/10

Sacramento County wins $21.4 million grant to bolster sheriff patrols -- The Sacramento County Sheriff's Department – battered by budget cuts and passed over last year for stimulus funds – finally has something to celebrate. Robert Lewis in the Sacramento Bee -- 10/1/10

   Beltway

News Corp. gave $1 million to pro-GOP group -- News Corp., the parent company of Fox News, contributed $1 million this summer to the U.S. Chamber of Commerce, the business lobby that has been running an aggressive campaign in support of the Republican effort to retake Congress, a source close to the company told POLITICO. BEN SMITH Politico -- 10/1/10

Boehner: Here is how I would run the House -- House Minority Leader John Boehner (R-Ohio) on Thursday laid out a detailed blueprint for how he would run the House if Republicans win back control this fall. Molly K. Hooper The Hill -- 10/1/10

Miller to Boehner: We’re not that close -- Stop with the pals talk, Democratic Rep. George Miller told Minority House Leader John Boehner of Ohio in so many words today. Lisa Vorderbrueggen Political Blotter weblog -- 10/1/10