Updates Since This Morning

Maid's story may end up being the key to governor's race -- After all the tens of millions of dollars that Republican gubernatorial candidate Meg Whitman has spent to build her brand as a corporate CEO ready to take on California's myriad crises, the story told by an undocumented maid from the East Bay may prove to be her undoing. Steven Harmon in the Contra Costa Times -- 10/7/10

An associate of Jerry Brown calls Meg Whitman a "whore" over pension reform (AUDIO) -- In a private conversation that was inadvertently taped by a voicemail machine, an associate of Democratic gubernatorial candidate Jerry Brown can be heard referring to his Republican opponent Meg Whitman as a “whore” for cutting a deal protecting law enforcement pensions as the two candidates competed for police endorsements. Seema Mehta in the Los Angeles Times -- 10/7/10

Governor's race offers stark choice in shaping judiciary -- California's next governor, whether it is Democrat Jerry Brown or Republican Meg Whitman, will be swamped with political worries over the state budget, immigration woes, incurable prison overcrowding and a bloated public employee pension system. Howard Mintz in the Contra Costa Times -- 10/7/10

Brown would 'reinvigorate' office he said last year he'd close -- Democratic gubernatorial candidate Jerry Brown says in his plan to make government more efficient that he would reinvigorate the Office of Administrative Law, which he said he created to control regulatory excess. David Siders SacBee Capitol Alert -- 10/7/10

Marijuana legalization proposition pulling in high-dollar donations -- With the election less than a month away, the campaign to pass Proposition 19, the marijuana legalization initiative, is pulling in some high-dollar donations. John Hoeffel in the Los Angeles Times -- 10/7/10

Rizzo says Bell owes him more money and should still be paying his salary -- The city of Bell agreed to provide Robert Rizzo with a severance and other benefits when he resigned earlier this summer but has since reneged on the deal, his attorney claimed Thursday. Jeff Gottlieb and Ruben Vives in the Los Angeles Times -- 10/7/10

Bell residents group wants city placed into receivership -- A group of Bell residents plan to march in front of City Hall on Thursday evening to demand that the city immediately be placed into receivership. Ruben Vives in the Los Angeles Times -- 10/7/10

• Assembly passes budget bill; more measures await -- The Assembly approved the $87.5 billion state budget bill this afternoon and sent it to the Senate, but both houses have nearly two dozen measures to plow through before the overdue spending plan will be finished. Dan Smith SacBee Capitol Alert -- 10/7/10

Online travel sites maneuvering on hotel tax -- Online travel websites are seeking a last-minute budget provision that specifies that they must only charge occupancy tax on the portion of hotel costs that go toward hoteliers. Kevin Yamamura SacBee Capitol Alert -- 10/7/10

Conservative TV hosts press feds to "do something" about Whitman housekeeper -- Nicky Diaz Santillan has become a topic de jour on conservative talk TV and radio, with prominent figures grilling Obama Administration officials about what they will do about Republican candidate Meg Whitman's undocumented former maid. Susan Ferriss SacBee Capitol Alert -- 10/7/10

Transparency? Assembly votes before budget bill made public -- Even as Assembly Speaker John A. Pérez on Thursday hailed transparency, openness and public participation in this year's budget deliberations, the key bill on which his house was voting had not yet been released to the public. Jim Sanders SacBee Capitol Alert -- 10/7/10

Help for Schwarzenegger ally tucked into budget at last minute -- A last-minute budget concession is heading to a struggling business founded by a political ally and generous campaign contributor to Gov. Arnold Schwarzenegger. Jack Dolan in the Los Angeles Times -- 10/7/10

Budget package allows $5.5 billion in cash deferrals -- State Controller John Chiang hasn't said whether the state can successfully avoid formal IOUs with passage of a budget today, but the package includes a bill that would help the state conserve enough cash over the next month. Kevin Yamamura SacBee Capitol Alert -- 10/7/10

Insurer-funded PAC bankrolls ads backing GOP insurance commissioner candidate -- A California Chamber of Commerce political action committee is spending more than $280,000 on "media production" for the TV ads. The funds come in part from insurance-company interests. Marc Lifsher in the Los Angeles Times -- 10/7/10

Senate releases its budget bill list -- We still don't have all the language of the bills being voted on today, but the Senate just officially released its list of bills here. Kevin Yamamura SacBee Capitol Alert -- 10/7/10

Furloughs likely for unions that have not reached contract agreements with Schwarzenegger administration -- California is expected to save about $1.5 billion in state employee compensation due to renegotiated union contracts and new furlough plans in the state budget expected to be approved by lawmakers Thursday. Anthony York in the Los Angeles Times -- 10/7/10

Fox: Not a Good Budget. Not a Smart Budget. But a Logical One -- Looks like we're getting a budget like we've had in the past. Joel Fox Fox & Hounds weblog -- 10/7/10

Sarah Palin billboard in the heart of San Francisco's Castro district: How long will this sign last -- Former Alaska Gov. Sarah Palin's smiling face was beaming over San Francisco's Castro District today, after the conservative Liberty and Freedom Foundation decided to unveil a billboard at the corner of Market and Castro to push her visit next week to the South Bay. Carla Marinucci Chronicle Politics Weblog -- 10/7/10

Child care as a campaign expense? For the Lockyers, yes -- Meals out, cell phone bills and office supplies are frequent expenses listed on campaign finance reports that candidates file. But a babysitter? Torey Van Oot SacBee Capitol Alert -- 10/7/10

Barbara Boxer: "nothing off the table" on Iran; wants Americans' "safety ensured" before closing Guantanamo -- This just in from the Forward, a Jewish weekly, which posted Democratic incumbent Sen. Barbara Boxer's responses to written questions on its new blog, MitzVote. (GOP challenger Carly Fiorina has not yet responded.) Highlights added. Carolyn Lochhead Carla Marinucci Chronicle Politics Weblog -- 10/7/10

Budget would remove felons from home care jobs -- The budget package lawmakers are set to vote on Thursday includes new rules that would restrict violent felons from working in the state's massive home healthcare program. Evan Halper in the Los Angeles Times -- 10/7/10

Budget bill allows state to pursue digital freeway billboards -- California would seek federal permission for an "experimental project" to use electronic freeway signs for commercial advertising purposes under one of the budget trailer bills being voted upon today. Kevin Yamamura SacBee Capitol Alert -- 10/7/10

ARB chair, construction industry, announce deal on diesel emissions -- California’s top air quality regulator and the head of a major construction industry trade group announced Thursday that they have reached agreement on a plan to reduce diesel emissions from construction equipment. Dan Weintraub HealthyCal.org -- 10/7/10

Don't expect Pelosi stumping for Bera -- The race between Republican Rep. Dan Lungren and Democrat Ami Bera is one of the hottest contests in the country, but it apparently won't be hot enough to bring House Speaker Nancy Pelosi to California's Third Congressional District. Rob Hotakainen SacBee Capitol Alert -- 10/7/10

California's debt levels soar under Schwarzenegger -- Despite Gov. Arnold Schwarzenegger's promises to reduce California's indebtedness, the state's debt has nearly tripled during the seven years he has been governor. Louis Freedberg California Watch -- 10/7/10

In wake of housekeeper scandal, Dems give cash to Brown -- The day after Meg Whitman’s former housekeeper went public, the state Democratic Party pumped $1.6 million into Jerry Brown’s campaign for governor. Lance Williams California Watch -- 10/7/10

L.A. board moves to end teacher layoffs at struggling schools -- The Los Angeles Unified School District Board of Education approved a landmark agreement Tuesday that could spare up to 45 schools in high-poverty areas from teacher layoffs and possibly fuel efforts elsewhere to protect vulnerable students from budget-related personnel cuts. Corey G. Johnson California Watch -- 10/7/10

Fore! Prop 23 donors golf together -- What do a New York barge company, Kansas-based Koch Industries, and Valero, a Texas oil corporation, have in common? Susanne Rust California Watch -- 10/7/10

GOP takeover of Congress would mean 'hand-to-hand combat,' Obama warns -- A Republican majority would threaten policies to stabilize the economy, the president says during a radio interview, part of an effort to rally key Democratic constituencies. Michael A. Memoli in the Los Angeles Times -- 10/7/10

   Newsom Maldonado Debate

Abel Maldonado, Gavin Newsom exchange barbs -- The two candidates for California lieutenant governor clashed in a debate Thursday, talking about a wide range of political issues including education, the environment, immigration and government reform. Anthony York in the Los Angeles Times -- 10/7/10

Gavin Newsom-Abel Maldonado debate: Redistricting -- Gavin Newsom says "Democrats have had it too easy," and that he opposes Proposition 27, which would repeal a recent law that would hand power to draw legislative district maps over to an independent commission. Anthony York in the Los Angeles Times -- 10/7/10

Gavin Newsom-Abel Maldonado debate: Government reform -- Republican Abel Maldonado said he opposed the concept of a majority-vote budget. "I've been there, I've watched what happened," he said. Anthony York in the Los Angeles Times -- 10/7/10

Gavin Newsom-Abel Maldonado debate: Proposition 23 -- Abel Maldonado was asked to explain why he voted against the state's greenhouse gas law, AB 32, while in the Legislature but now opposes a measure on the November ballot that would suspend the law. Anthony York in the Los Angeles Times -- 10/7/10

Gavin Newsom-Abel Maldonado debate: Immigration -- Newsom said "immigration has been the strength of this region." He said immigrants make up "the backbone of this state," and called for the lifting of visa limits for students. Anthony York in the Los Angeles Times -- 10/7/10

   California Policy and Politics This Morning

SEIU, Schwarzenegger agree to labor pact with pension concessions -- The Schwarzenegger administration and Service Employees International Union Local 1000 have just announced a tentative labor agreement that includes higher employee contributions to their retirement plans and rolls back pension formulas for new hires to pre-1999 levels. Jon Ortiz in the Sacramento Bee Shane Goldmacher in the Los Angeles Times -- 10/7/10

Brown talks rocket ships, housekeepers at San Francisco fundraiser -- Democratic gubernatorial nominee Jerry Brown channelled his inner Obama on Wednesday night, preaching post-partisanship and unity at a small-dollar fundraiser in San Francisco. Michael J. Mishak in the Los Angeles Times -- 10/7/10

Lawyer: Whitman maid here nearly 20 years, paid taxes -- Immigration attorney Marc Van Der Hout, who is representing Meg Whitman's former maid, said his undocumented client has been in the United States for nearly 20 years and has a long work history and family ties to bolster her quest for legal residency. Susan Ferriss SacBee Capitol Alert -- 10/7/10

Former CEO Meg Whitman's new ad: is it time to "run California like a business"" -- or not? -- In the wake of some tough weeks in the gubernatorial campaign, including the headline-grabbing issue of her former maid, Republican Meg Whitman has unveiled a new positive-themed back-to-basics ad -- almost an introduction spot -- in which the former eBay CEO says: "I know government isn't a business -- and it shouldn't be.'' Carla Marinucci Chronicle Politics Weblog -- 10/7/10

Whitman maid's lawyer: Diaz here nearly 20 years, has paid taxes -- Immigration attorney Marc Van Der Hout, who is representing Meg Whitman's former maid, said his undocumented client has been in the United States for nearly 20 years and has a long work history and family ties to bolster her quest for legal residency. Susan Ferriss SacBee Capitol Alert -- 10/7/10

George W. Bush regs targeted bosses who ignored 'no-match' letters -- By every indication, Meg Whitman broke no law by not responding to a government notice in 2003 that her housekeeper's personal information didn't match Social Security Administration records. But if President George W. Bush had gotten his way, an employer who acted the same way today would be facing a government lawsuit, and possibly future prosecution. Bob Egelko Chronicle Politics Weblog -- 10/7/10

CalBuzz: eMeg’s Hefty Bag & Fun with Stocks and Money -- Team Whitman, trying desperately to dig eMeg out of the hole she carved into her campaign with her handling of Nicky Diaz, her undocumented housekeeper for nine years, sought to change the subject Wednesday by quoting ex-Republican congressman Michael Oxley of Ohio as saying he’s “outraged” that Jerry Brown used his name in an anti-Whitman TV ad. Jerry Roberts and Phil Trounstine CalBuzz -- 10/7/10

Crisis communications experts dissect Whitman's response to housekeeper story -- More than a week after it was revealed that Meg Whitman employed an undocumented immigrant as a housekeeper for more than nine years, Whitman is still facing questions about the issue and how it may affect her standing with Latino voters. Anthony York in Capitol Weekly -- 10/7/10

Fiorina avoids Sarah Palin rally as general election nears -- Warning: Sarah Palin can be bad for your political health. That's the finding of a new survey from the Field Poll. Maeve Reston and Anthony York in the Los Angeles Times -- 10/7/10

Former congressman featured in Brown ad calls Brown "a classic retread" -- Last week, Jerry Brown unveiled a new ad calling Meg Whitman's character into question, attacking her over old stock deals. Anthony York in the Los Angeles Times -- 10/7/10

AG candidate Cooley leads Harris in fundraising, but how will he use it? -- Well, the numbers are in in the increasingly contentious attorney general race between SF District Attorney Kamala Harris and LA District Attorney Steve Cooley, and we have to admit -- we're a bit surprised. Marisa Lagos Chronicle Politics Weblog -- 10/7/10

Harris announces attack ad against rival Cooley -- Democratic state attorney general nominee Kamala Harris on Wednesday announced her first attack ad against GOP rival Steve Cooley, accusing the Republican district attorney of Los Angeles County of shutting down his environmental crimes unit after a deputy starting investigating one of his campaign contributions. Phil Willon in the Los Angeles Times -- 10/7/10

High on Proposition 19, Tom Ammiano gets regulation bill ready -- State Assemblyman Tom Ammiano is so high (pun just in fun) on the chances of Proposition 19 passing in next month's general election, legalizing adult marijuana use, that he's already trying to get the state ready for oversight. Kevin Fagan Chronicle Politics Weblog -- 10/7/10

Quinn: Proposition 20: Fighting against rigged congressional districts -- In 212 elections for the House of Representatives from California during the past decade, exactly one district has changed parties. And exactly one incumbent congressman has been defeated. Tony Quinn in Capitol Weekly -- 10/7/10

Lieutenant governor candidates have more sizzle than the job -- The post is largely ceremonial, but rivals Gavin Newsom, of San Francisco gay-marriage fame, and incumbent Abel Maldonado, a Republican who crossed the aisle to vote with the Democrats on a state budget, are taking the campaign seriously. Kate Linthicum in the Los Angeles Times -- 10/7/10

Another fall, and Dan Lungren is back in his bathing suit -- The leaves are turning, but it's bathing suit season for Dan Lungren. Rob Hotakainen in the Sacramento Bee -- 10/7/10

Ad Watch: Assemblywoman Huber wrongly painted as dishonest -- The California Republican Party questions the integrity of incumbent Assemblywoman Alyson Huber, D-El Dorado Hills, in a 30-second television ad airing in the 10th Assembly District, which stretches from Lodi to Ione to Rancho Cordova. Jim Sanders in the Sacramento Bee -- 10/7/10

Don Perata breaks spending record in Oakland mayor's race -- The Coalition for a Safer California spent $137,000 in the past three months to help Don Perata in his quest to become Oakland's next mayor, and the former state senator responded by spending more than $593,000 -- a record -- with a month still to go. Cecily Burt in the Oakland Tribune -- 10/7/10

Crowded field in race for Oakland mayor's seat -- Oakland's next mayor will have a wonderful opportunity to reshape the future of this great East Bay city. But it won't be easy. Or quick. Cecily Burt in the Oakland Tribune -- 10/7/10

Voters already going to the polls – via the Post Office -- Nearly nine million voters cast ballots in the last non-presidential general election, and more than four in every 10 voted by mail. A similar proportion is expected this election. John Howard in Capitol Weekly -- 10/7/10

Casino tribes in others states defaulting on debts — with few consequences -- Last November, the Mashantucket Pequot Tribal Nation in Connecticut failed to make $7 million of a scheduled $21.25 million payment on a $500 million debt. The collateral on the deal was their Foxwoods Resort Casino. Malcolm Maclachlan in Capitol Weekly -- 10/7/10

Joe Shumate: Saga of a political wizard -- A “brilliant mathematician” and the son of a community bus driver, Joe Shumate became California’s behind-the-scenes Republican powerhouse. Jennifer Chaussee in Capitol Weekly -- 10/7/10

   Budget

Budget plan a temporary fix to California's long-term fiscal woes -- The Legislature can bring California's record-long stalemate to a close today with floor votes on the 99th day of the fiscal year, ending the state's financial woes for the time being. Kevin Yamamura in the Sacramento Bee -- 10/7/10

Budget deal would close California's deficit but makes rosy projections -- The agreement that lawmakers are scheduled to vote on Thursday would close the $19.1-billion shortfall by trimming salaries, public school funding and services. It relies heavily on federal dollars. Shane Goldmacher in the Los Angeles Times -- 10/7/10

Skelton: It's a gimmick-laden budget, but get the deal done -- By Friday, a plan will be 99 days past due. Game time is over. George Skelton in the Los Angeles Times -- 10/7/10

More details on state budget plan -- Here's the latest sketch we can provide, based on a Senate Democratic presentation obtained by The Bee and an eight-page document publicly released: The item is at SacBee Capitol Alert Shane Goldmacher in the Los Angeles Times VAUHINI VARA in the Wall Street Journal -- 10/7/10

California budget goes to Legislature for vote -- There will be no new taxes and state services will not be severely reduced or eliminated as in past years. Instead, the $19 billion deficit is largely plugged with what lawmakers call solutions and creative accounting tactics, some of which push off payments to the next fiscal year. Wyatt Buchanan in the San Francisco Chronicle -- 10/7/10

Educators say budget plan could cost them later -- Orange County education leaders on Wednesday said a proposed state budget deal seems shaky and could lead to another round of painful, mid-year budget cuts. FERMIN LEAL in the Orange County Register -- 10/7/10

   Tax Measures

Does sales tax hike dampen sales? -- Business owners fear that a sales-tax increase proposed on San Diego’s Nov. 2 ballot would scare off shoppers, but experts disagree about whether there’s a correlation. Tanya Mannes in the San Diego Union-Trib -- 10/7/10

   Economy - Jobs

Aerospace suppliers brace for defense spending cuts -- Nearly 5,500 California firms with a total workforce of more than 130,000 could be affected. Analysts expect many of these small shops to go out of business, merge with rivals or cut employees to survive. W.J. Hennigan in the Los Angeles Times -- 10/7/10

The State Worker: Furlough ruling puts Legislature on the hot seat -- They finished the narrative on Friday, cast the villain and set the story in motion. Then on Monday, the California Supreme Court blew it up. Jon Ortiz in the Sacramento Bee -- 10/7/10

Forecast: A 'long' and 'slow' recovery -- Double-digit unemployment rates will persist in the Inland Empire until 2014, economists said Wednesday, painting a bleak employment picture in a forecast for the region. Rebecca U. Cho in the San Bernardino Sun -- 10/7/10

In foreclosure controversy, problems run deeper than flawed paperwork -- Millions of U.S. mortgages have been shuttled around the global financial system - sold and resold by firms - without the documents that traditionally prove who legally owns the loans. Brady Dennis and Ariana Eunjung Cha in the Washington Post -- 10/7/10

Cal Expo to host 5-day event to help homeowners facing foreclosure -- A nonprofit community group will set up shop Friday at Cal Expo and offer five days of around-the-clock assistance to struggling homeowners. Mark Glover in the Sacramento Bee -- 10/7/10

Green jobs rise in state, study finds -- Despite the decline in manufacturing employment in California, one key industrial sector is seeing robust job growth: the green economy. Rick Daysog in the Sacramento Bee -- 10/7/10

Green tech, AB 32 a major economic driver for state -- Green technology is a major driver of economic development in California, and according to a new study by Next 10, a non-partisan research organization created by Silicon Valley venture capitalist F. Noel Perry. Malcolm Maclachlan in Capitol Weekly -- 10/7/10

California's clean-tech industry is booming but threatened -- More money is being invested in alternative energy start-ups here than anywhere else in the world. But the state's dominant position is threatened by Proposition 23 and competition from China. Tiffany Hsu in the Los Angeles Times -- 10/7/10

Housing crisis a lift for rentals -- Vacancy rates are down and landlords are charging more as homeownership falls. Alejandro Lazo in the Los Angeles Times -- 10/7/10

   Education

UTLA may sue to block layoff change -- Left out of talks, teachers threaten to challenge a settlement deal ending 'last hired, first fired' policy in L.A. Unified. Howard Blume and Jason Song in the Los Angeles Times -- 10/7/10

State budget deal sets aside more money for UC, CSU -- Public universities may get $500 million more than last year under proposed spending plan. Campus officials are 'very pleased' but note that funding remains substantially lower than before the recession. Larry Gordon and Carla Rivera in the Los Angeles Times -- 10/7/10

Harsh fiscal lessons for angry UC students -- Today, students and faculty are again planning to walk out of UC and other public campuses statewide, protesting conditions in which a top-quality college education in California is growing beyond the reach of many working people. Nanette Asimov in the San Francisco Chronicle -- 10/7/10

Fensterwald: Legislature’s dilemma: suspending Prop 98 -- Legislators face the option today of passing a state budget that suspends Proposition 98 for only the second time in two decades, or of rejecting the budget and taking no action for at least another month, possibly throwing the state and those who depend on it for money – school districts and community colleges included – into financial chaos. John Fensterwald educatedguess -- 10/7/10

McRae: The sorry saga behind state’s School Improvement Grants -- The federal stimulus package for K-12 schools this year included $416 million to California to turn around persistently low-achieving schools via “School Improvement Grants.” Because of bureaucratic bungling and policymaker failures, almost $100 million of the money is being misdirected. Doug McRae TopEd -- 10/7/10

   Environment

Whittier hopes to profit from oil from land preserved with taxpayer funds -- L.A. County also wants to get in on the potential plan for a Santa Barbara oil company to put up to 52 wells on land in open space bought using Proposition A funds. Conservationists are saying 'Not so fast' to both. Louis Sahagun in the Los Angeles Times -- 10/7/10

In the heart of L.A., wide open spaces -- Portions of a dozen streets will be closed to car traffic Sunday on a zigzagging route. There are sure to be lots of cyclists, but in the free-form event, participants can use the streets for many other activities too. Kate Linthicum in the Los Angeles Times -- 10/7/10

   Health Care

Budget plans spares health, welfare programs from deep cuts governor proposed -- The state budget package laid out by legislative leaders and Gov. Arnold Schwarzenegger scales back the most drastic cuts to health and social service programs the governor proposed earlier this year. Dan Weintraub HealthyCal.org -- 10/7/10

Foster kids won’t get same benefits as other young adults through health reform -- Parents across the country can put their 20-something kids back on their private health insurance thanks to health reform laws that rolled out last month But thousands of young adults will not have that opportunity: foster children who were raised in the care and custody of the state. Megan Baier HealthyCal.org -- 10/7/10

   Immigration

Fight over illegals' tuition reaches high court -- The issue of benefits for illegal immigrants landed at the state Supreme Court on Tuesday, as out-of-state students challenged a law allowing anyone who has graduated from a California high school to pay in-state tuition at a public university, regardless of immigration status. Bob Egelko in the San Francisco Chronicle -- 10/7/10

   Also..

California Pipeline Blast Puts Focus on Oversight -- The natural-gas explosion that devastated a Northern California neighborhood has turned a spotlight on the state's oversight of pipeline maintenance and safety. REBECCA SMITH in the Wall Street Journal -- 10/7/10

San Bruno gas blast gives ammunition to critics of industry risk assessment -- These experts say companies have put far too much faith in technology and inspection methods. The segment wasn't one of PG&E's top 100 safety priorities but the pipe may have been brittle and corroded by water and sewage, evidence indicates. Ralph Vartabedian in the Los Angeles Times -- 10/7/10

Morain: For all the tough talk, death row grows -- The power of the California attorney general became clear early on the morning of April 21, 1992. So did the lack of it. Dan Morain in the Sacramento Bee -- 10/7/10

Smooth sailing for vote on America's Cup bid -- Now the decision is up to Larry Ellison and his team. The Board of Supervisors on Tuesday voted in favor of San Francisco trying to host the 34th America's Cup, sailing's most prestigious event. Heather Knight, Rachel Gordon in the San Francisco Chronicle -- 10/7/10

Cell Phones Flooding to Mexican Mafia Prisoners -- When Los Angeles–based state Sen. Alex Padilla read Vanity Fair's 2007 tale of the criminal takeover of the streets of São Paulo, Brazil, by imprisoned murderers, who managed the coordinated feat for several days using cell phones, he went to work finding out if California prisoners were directing crimes from cell phones smuggled into prisons. Jill Stewart LA Weekly -- 10/7/10

New California driver's license has features to foil counterfeiters -- State officials on Wednesday unveiled a dramatically redesigned California driver's license packed with hidden photos, raised lettering and a see-through state bear symbol – all aimed at foiling counterfeiters. Tony Bizjak in the Sacramento Bee -- 10/7/10

   POTUS 44

Obama reshapes administration for a fresh strategy -- White House staff changes are being made with an eye toward achieving goals through executive actions rather than by trying to push plans through the next Congress, which is expected to be even more hostile to the president. Peter Nicholas and Christi Parsons in the Los Angeles Times -- 10/7/10

   Beltway

Hill digs in for lame-duck tax fight -- An orderly lame-duck compromise on expiring tax rates is starting to look a lot less likely as both parties dig in and refuse to negotiate ahead of elections. JOHN MAGGS Politico -- 10/7/10

Liberal groups say foreign funds aid Republicans -- They accuse the U.S. Chamber of Commerce of using foreign money to help fund GOP candidates, which would be a violation of U.S. election law. The charge, which the chamber denies, is gaining traction. Kim Geiger in the Los Angeles Times -- 10/7/10