Updates Since This Morning

Giuliani accuses Democrats of seeking to ignite 'ethnic' and 'class' conflicts -- Former New York City Mayor Rudolph W. Giuliani campaigned in Little Saigon on Monday with Republican Senate candidate Carly Fiorina and state Assemblyman Van Tran, who is vying to unseat Democratic U.S. Rep. Loretta Sanchez in the 47th congressional district, and blasted their rivals as "two of the most liberal members of the House and Senate" who are partly to blame for the nation’s economic slump. Maeve Reston in the Los Angeles Times -- 10/11/10

California accepts $2.33-billion bid for 24 office buildings -- The state will lease back the buildings, two of which are in downtown Los Angeles, for at least 20 years. Hines and Antarctica Capital Real Estate are the buyers. Roger Vincent in the Los Angeles Times David Siders SacBee Capitol Alert -- 10/11/10

Ahead of November vote, CA ballot measures rake in the dough -- Looks like Meg Whitman isn't the only big spender this election season. Marisa Lagos Carla Marinucci Chronicle Politics Weblog -- 10/11/10

Study finds Texas with economic edge on California -- Meg Whitman, the Republican candidate for governor, often compares California's business climate, unfavorably, to that of Texas, and she's correct, says a new study for the Texas Public Policy Foundation. Dan Walters SacBee Capitol Alert -- 10/11/10

Podcast: Burnout and Sizzle -- This week's Capital Notes Podcast comes a few days late, due to the exhaustion of last week's marathon ending to Budget Crisis 2010. John Myers Capitol Notes weblog -- 10/11/10

Kamala Harris gets boost from Obama -- but will it help at polls? -- Hoping to tilt a tight race, President Barack Obama has announced his support for Kamala Harris in her race against Steve Cooley for state attorney general. Jim Sanders SacBee Capitol Alert -- 10/11/10

From the Gubernatorial Candidates on the Budget: ‘No Comment’ -- Californians following the governor's race through the media think the choice is between one candidate who doesn't read her mail and another who doesn't know how to hang up the telephone. Joel Fox Fox & Hounds weblog -- 10/11/10

Will the Courts Soon Drive Illegal Aliens Out of Our Public Colleges? -- It’s always risky to read judicial tea leaves, but judging from last week’s oral arguments before the California Supreme Court, a majority of the justices may uphold the state law granting illegal immigrant graduates of California high schools in-state tuition at the state’s public colleges and universities. A decision is due within 90 days. Peter Schrag Cal Progress Report -- 10/11/10

Union sponsors new anti-Carly Fiorina video; Fiorina fights back with own video called "Truth" -- Brave New Films and the Los Angeles County Federation of Labor has a new video out tying Republican Senate candidate Carly Fiorina to California's high unemployment rate, interviewing several of the 30,000 former Hewlett Packard workers who were laid off during her tenure there from 1999 to 2005. Carolyn Lochhead in the San Francisco Chronicle -- 10/11/10

Carly Fiorina and Meg Whitman show off their inner Latina... with tequila shots? -- Amigos, they don't call it the Grand Old Party for nothing. Carla Marinucci Chronicle Politics Weblog -- 10/11/10

Lungren calls Bera a 'Pelosi clone' in new television spot -- Republican Rep. Dan Lungren blasts a Democrat on the ballot in his new television ad. But the main target of his attack isn't his 3rd Congressional District opponent Ami Bera, it's House Speaker Nancy Pelosi. Torey Van Oot SacBee Capitol Alert -- 10/11/10

Do Democrats have a potty-mouth problem? -- First, someone in Jerry Brown's camp was caught on tape calling Meg Whitman a "whore." Now the incumbent state treasurer is using an expletive in his first ad for reelection. Anthony York in the Los Angeles Times -- 10/11/10

Lockyer: ‘Straight Talk, No Bull#*+!” -- Incumbent state Treasurer Bill Lockyer launched the first television ad of his re-election campaign today, with a slogan of “Straight Talk, No Bull#*+!” For real. Josh Richman Political Blotter weblog -- 10/11/10

With budget signed, Senate Republicans change leaders -- Sen. Bob Dutton (R-Rancho Cucamonga) has taken over as Senate Republican leader. Dutton was scheduled to take the job from Sen. Dennis Hollingsworth (R-Murrieta) on Sept. 1. But the two senators opted not to transfer the reins of power as long as the state's budget stalemate continued. Anthony York in the Los Angeles Times Torey Van Oot SacBee Capitol Alert -- 10/11/10

Whitman maid controversy hits 'SNL' -- Nicky-gate hit the big time over the weekend. Seema Mehta in the Los Angeles Times -- 10/11/10

Controller: Tax receipts up, fiscal outlook still poor -- State Controller John Chiang said Monday tax collections outpaced expectations by $1.1 billion in September, but warned that the uptick is more likely a result of shifting tax laws and deadlines than an improving economy. Shane Goldmacher in the Los Angeles Times -- 10/11/10

CalPERS fires pension fund adviser -- CalPERS today severed its ties with Pacific Corporate Group, a longstanding investment advisor that had close ties to the man accused of bribing CalPERS officials. Dale Kasler in the Sacramento Bee -- 10/11/10

   California Policy and Politics This Morning

Whitman calls "whore" comment a slur, refuses further comment -- Republican gubernatorial nominee Meg Whitman declined comment Sunday about being called a “whore” by someone associated with rival Jerry Brown’s campaign. Seema Mehta in the Los Angeles Times -- 10/11/10

Nazis, liars, whores: A short history of Brown-Whitman attacks -- From someone in Jerry Brown's office caught privately calling Meg Whitman a "whore" for allegedly trading pension protection for endorsements to an anonymous Team Whitman aide mocking Brown with a Humpty Dumpty-style nursery rhyme, it's clear there's no love lost between the gubernatorial campaigns. Stephanie Rice California Watch -- 10/11/10

Giuliani: Brown is Ca.'s past, Whitman its future -- Locked in a fight for centrist voters, Meg Whitman turned to fellow Republican moderate Rudy Giuliani on Sunday to help make her case that she will heal California's economy and transform Sacramento by slashing government spending and lowering taxes. MICHAEL R. BLOOD AP -- 10/11/10

Tactics split state's top two GOP contenders -- Fiorina, trying to unseat Boxer, stays true to her conservative primary stance. Whitman, running against Brown, moves to the center in search of moderate voters. Maeve Reston and Seema Mehta in the Los Angeles Times -- 10/11/10

Coming Up Next: Brokaw Takes on eMeg and Krusty -- First there was the Duel in Davis. Then the Fracas in Fresno. And now comes the Brokaw Brawl. Jerry Roberts and Phil Trounstine CalBuzz -- 10/11/10

Fiorina courts voters at Iranian-American Jewish gathering -- Carly Fiorina continued her efforts to court Jewish voters Sunday, telling an audience of Iranian American Jews that her recent journey to Israel had been “intense” and “life-changing” while calling on the U.S. to take a more aggressive stance against Iran’s president and the country’s nuclear program. Maeve Reston in the Los Angeles Times -- 10/11/10

Boxer highlights endorsement by VFW PAC -- Accenting again the campaign focus she has placed on veterans' affairs, Sen. Barbara Boxer on Sunday formally opened a veterans' center at Pasadena City College and was later brought to tears by a forceful defense of her record by Sen. Daniel Inouye of Hawaii, a highly decorated member of Congress. Cathleen Decker in the Los Angeles Times -- 10/11/10

Despite bans, insurance industry donations slip into campaigns -- With the next California insurance commissioner expected to play a significant role in the way national health care reform is implemented in the state, the insurance industry is watching the race between Democrat Dave Jones and Republican Mike Villines closely. Stephanie Rice California Watch -- 10/11/10

State Capitol workers, families benefit from BP's largess at Arco Arena -- Petroleum giant BP's corporate sponsorship of Arco Arena has been lucrative for the Sacramento Kings during a long run that's set to end next year. It's also been a sweet deal for state Capitol workers. Rick Daysog in the Sacramento Bee -- 10/11/10

A dopey measure on marijuana -- California has enough problems without legalizing pot. George Skelton in the Los Angeles Times -- 10/11/10

California Democrats bet on bong war -- Forget the billion-dollar budget hole and layoff threats — the big debate in California right now is whether a bong war over legalizing pot could help boost Gov. Moonbeam back into office. MAGGIE HABERMAN Politico -- 10/11/10

Battle lines drawn over ballot measure to repeal tax breaks -- At a time when the state's schools and economy are both suffering, California teachers are battling business interests over corporate tax cuts that could be worth billions of dollars over the next few years. Brandon Bailey in the San Jose Mercury -- 10/11/10

State's anti-global warming effort at crossroads -- California's voters will decide whether to dramatically temper the state’s aggressive campaign to curb global warming, a decision carrying economic and environmental implications nationwide. Michael Gardner in the San Diego Union-Trib -- 10/11/10

New Voting Force Rises -- To woo the growing number of Vietnamese constituents in her Orange County district, U.S. Rep. Loretta Sanchez has traveled to Vietnam to bring attention to the plight of political dissidents, and co-founded the Congressional Caucus on Vietnam to push for human rights there. TAMARA AUDI in the Wall Street Journal -- 10/11/10

Ron Paul disciple has tall task in opposing Napolitano for Congressional seat -- In a congressional district that has long supported Democratic incumbent Grace Napolitano, Republican Robert W. Vaughn faces the additional challenge of not living in the district he hopes to represent following November's election. James Figueroa in the San Gabriel Tribune -- 10/11/10

Perea has edge in 31st District race -- Selma Republican Brandon Shoemaker has done everything from holding a mock delta-smelt barbecue to allying himself with the surging tea party movement in a bid to win the state Assembly's 31st District seat. History is not on his side. John Ellis in the Fresno Bee -- 10/11/10

   Budget

Walters: A high-risk scenario on tax hike -- It took nine months for the Capitol's politicians to gestate a state budget, and it's a progeny that even a mother wouldn't love. Dan Walters in the Sacramento Bee -- 10/11/10

Schwarzenegger condemned for cutting nearly $1 billion from budget -- Democratic lawmakers and advocates for the poor harshly criticized Gov. Arnold Schwarzenegger over the weekend after he vetoed nearly $1 billion from the state budget, much of it from programs intended to aid low-income families. Dan Weintraub HealthyCal.org -- 10/11/10

Budget gave Schwarzenegger a win over CalPERS -- By winning a deal last week to scale back pension benefits for public employees, Gov. Arnold Schwarzenegger beat one of his most formidable opponents: CalPERS. Dale Kasler in the Sacramento Bee -- 10/11/10

   Economy - Jobs

Marin Borrowers Unite Against Mortgage Firms -- A small nonprofit last year formed an unusual support group for troubled Marin County homeowners. The group has helped members file dozens of lawsuits against mortgage companies, in a sometimes-controversial tactic aimed at staving off foreclosures. AMIR EFRATI in the Wall Street Journal -- 10/11/10

   Education

California spent nearly half a billion on college freshmen who later dropped out, study finds -- At a time when California's public colleges are battling to maintain state funding, a report says that over a five-year period, the state spent nearly half a billion dollars to educate first-year college students who dropped out before their sophomore year. Carla Rivera in the Los Angeles Times -- 10/11/10

Tracking system for students becomes last-minute victim to budget cuts -- The long effort to create a system to track the progress of students from kindergarten through college and into the workplace received another setback when Gov. Arnold Schwarzenegger eliminated $7.9 million in state funds intended for the project. Louis Freedberg California Watch -- 10/11/10

Governor sharply cuts money for CALPADS -- Gov. Schwarzenegger has become increasingly critical of delays and persistent problems with the new statewide student data system that’s supposed to provide a wealth of vital information and policy guidance on student achievement. John Fensterwald educatedguess -- 10/11/10

Candidates should see quality preschool as a winning issue -- With less than a month left until Election Day, gubernatorial candidates are intensifying efforts to attract voters, saying they want to create jobs, fix California’s education system, and make smart investments in the state’s future. Ernesto Saldana TopEd -- 10/11/10

   Environment

Land Dispute Blooms in Wine Country -- The trouble started in March of 2009 when Jill Matousek Turner, who owns a second home here, noticed a set of blue and white stakes in a vineyard she passed on her regular walk. JIM CARLTON in the Wall Street Journal -- 10/11/10

Prop 23 Money Trail -- It's not just big oil with big money in the game. Craig Miller KQED Climate Watch -- 10/11/10

   Health Care

Contra Costa now likely to build two mental health facilities -- In a move expected to bring cheers from the mental health community, a Contra Costa leader now says the county has enough money to build two psychiatric facilities next to the county hospital in Martinez. Sandy Kleffman in the Contra Costa Times -- 10/11/10

   Also..

Tipster in Bell scandal waited months for D.A., then was arrested -- A former Bell City Council member arrested in September on felony charges of misappropriating public funds told investigators more than a year ago that the city was plagued with bribery, voter fraud and "unethical retirement arrangements," according to a letter obtained by California Watch. Chase Davis California Watch -- 10/11/10

Prisons face cut of $1.1B -- The cut was announced in a report on the 2010-11 budget released last week by the California Legislative Analyst's Office. Gov. Arnold Schwarzenegger's administration is already considering cuts to corrections officers staffing and implementing a 12-hour workday for the officers in response to shrinking coffers. Neil Nisperos in the Inland Daily Bulletin -- 10/11/10

Google is testing self-driving cars -- At the TechCrunch Disrupt conference in San Francisco, Google CEO Eric Schmidt declared: "It's a bug that cars were invented before computers. Your car should drive itself. It just makes sense." Jessica Guynn in the Los Angeles Times -- 10/11/10

   POTUS 44

Obama continues attack on Chamber of Commerce -- The White House intensified its attacks Sunday on the powerful U.S. Chamber of Commerce for its alleged ties to foreign donors, part of an escalating Democratic effort to link Republican allies with corporate and overseas interests ahead of the November midterm elections. Dan Eggen and Scott Wilson in the Washington Post -- 10/11/10

As midterms near, Obama works to re-ignite 2008 enthusiasm in Philadelphia -- President Obama pressed his case Sunday to a crowd that packed into a park here, urging them to defy the conventional wisdom that they will not show up at the polls in November the way they did two years ago. Nia-Malika Henderson in the Washington Post -- 10/11/10

'Professional left' says Obama's needling strategy to get voters out won't work -- High-profile liberals say President Obama's attempts to badger Democrats into voting will not work this November. Sam Youngman The Hill -- 10/11/10

With black voters, Obama gets more personal -- The White House has hesitated to cast the midterm elections as a referendum on President Barack Obama, except when it comes to one key constituency: African-American voters. CAROL E. LEE & ABBY PHILLIP Politico -- 10/11/10

   Beltway

Some House Democrats may hold ground against Republican wave -- In conservative districts around the U.S., Democratic incumbents are fighting back and beginning to reverse declining poll numbers. Their efforts could blunt the predicted GOP gains next month. James Oliphant in the Los Angeles Times -- 10/11/10