* Updates Since Early This Morning

Steinberg: Senate will pass cuts Thursday -- Senate President Pro Tem Darrell Steinberg said after meeting with Gov. Jerry Brown this afternoon that the Senate will vote Thursday to pass spending reductions in Brown's budget plan, despite lacking Republican support for tax extensions. David Siders SacBee Capitol Alert -- 3/8/11

Brown may not have GOP support for budget, but he does have business, police -- While the Democratic governor may not yet have Republican votes for his budget plan, he is continuing to win support from two of the GOP's core constituencies: the business community and law enforcement groups. Marisa Lagos Chronicle Politics -- 3/8/11

Stark fighting back against Peter King's Muslim "radicalization" hearings -- Three Bay Area Congressional Democratic reps are leading the charge against Rep. Peter King -- the New York Republican who is chairing a hearing Thursday on "The Extent of Radicalization in the American Muslim Community and that Community's Response." Joe Garofoli Chronicle Politics -- 3/8/11

Fox: Denying Votes on Reforms Causes Budget Impasse -- In trying to determine if a deal to put a spending limit and pension reforms on the ballot in exchange for placing tax extensions on the ballot were possible, I spoke with a few people knowledgeable in California politics on my flight to Sacramento yesterday. The answer I received: the public unions would not let it happen. Joel Fox Fox & Hounds weblog -- 3/8/11

Analyst: Higher California income tax refunds raise concerns -- With tax filing season under way, Californians last month received significantly more in state income tax refunds than expected, curtailing previous enthusiasm for strong revenues. Kevin Yamamura SacBee Capitol Alert -- 3/8/11

Anti-tax pledge directs budget debates nationwide -- The governor of Wisconsin has signed it. So have most of the Republicans in California's Legislature. JULIET WILLIAMS AP -- 3/8/11

What the Census Says about the Bay Area -- Contra Costa County grows the fastest, while Oakland shrinks and San Francisco becomes more Asian. Aaron Glantz Bay Citizen -- 3/8/11

Tobacco tax proponents gird for battle -- As the budget battle reaches fever pitch in Sacramento, the fate of a tobacco tax to fund cancer research hangs in the balance. Josh Richman Political Blotter -- 3/8/11

County officials start Jane Harman replacement process even before governor calls special election -- The governor has yet to call a special election to replace former Rep. Jane Harman, but with so many potential candidates champing at the bit county elections officials have started the filing process anyway. Jean Merl LA Times PolitiCal -- 3/8/11

Courts, not Capitol, may have last word in budget battle -- Two of the high-profile issues in Gov. Brown’s fiscal proposals – the elimination of enterprise zones and abolishment of redevelopment agencies – are all but certain to wind up in state or federal court, and other budget pieces may prompt legal battles, too. John Howard Capitol Weekly -- 3/8/11

Kim Belshé joining PPIC -- Former Health and Human Services Agency Secretary Kim Belshé has taken a new job as senior policy adviser with the Public Policy Institute of California, the nonpartisan think tank and polling outfit announced today. Torey Van Oot SacBee Capitol Alert -- 3/8/11

Brown touts law enforcement support -- Gov. Jerry Brown said this morning that law enforcement leaders from throughout the state have endorsed his proposal to shift some state service to local government, a central part of his budget plan. David Siders SacBee Capitol Alert -- 3/8/11

Bay Area business leader to Jerry Brown, GOP: 'Make a deal' -- Another business group endorsed Gov. Jerry Brown's budget plan this morning, as the Democratic governor continues to line up cover for any Republican who might support his tax extension plan. David Siders SacBee Capitol Alert -- 3/8/11

L.A. City Council may transfer up to $1.3 billion in redevelopment funds out of state lawmakers' hands -- Worried that state officials will soon sign off on Gov. Jerry Brown's plan to shutter redevelopment agencies, the Los Angeles City Council is scheduled Tuesday to move as much as $1.3 billion in redevelopment funds out of the hands of state lawmakers. David Zahniser in the Los Angeles Times -- 3/8/11

Little water movement in King Harbor basins where massive fish die-off occurred -- The two basins where most of the dead fish estimated in the millions in Redondo Beach's King Harbor are concentrated get little water movement, which may explain why the fish were deprived of oxygen, a harbor official said. Andrew Blankstein in the Los Angeles Times -- 3/8/11

 

   California Policy and Politics This Morning

Result of furloughs - $1 billion liability -- California prison guards and their supervisors have racked up 33.2 million hours of vacation, sick and other paid time off - an astounding accumulation that amounts to nearly half a year per worker. It also adds up to a $1 billion liability for taxpayers of the deficit-plagued state. Marisa Lagos in the San Francisco Chronicle -- 3/8/11

Controller bashes redevelopment agencies -- The report found reporting flaws, substandard audits, questionable payment practices and an inappropriate use of affordable housing funds. The report also found no clear methodology or data to measure job growth. Robert Lewis in the Sacramento Bee Tracy Seipel in the San Jose Mercury Jessica Garrison in the Los Angeles Times DUANE W. GANG in the Riverside Press Teri Sforza in the Orange County Register Jim Steinberg, Wendy Leung and James Rufus Koren in the Inland Daily Bulletin -- 3/8/11

A Tidbit from the Controller’s Redevelopment Agency Audit -- As an example of such expenditures, the audit cites the City of San Jose which charged 25 percent of the salary and fringe benefits of the mayor, the 12 members of the city council and 40 city council staff members to the redevelopment agency. Greg Lucas California's capitol weblog -- 3/8/11

Counties group support Gov. Brown's realignment plan -- The California State Association of Counties released a letter this afternoon expressing support for Gov. Jerry Brown's plan to move state services to the counties, but cautioning that funding issues must be resolved. Brad Branan in the Sacramento Bee -- 3/8/11

Board wants vote on taxes -- The San Bernardino County Board of Education passed a resolution Monday supporting Gov. Jerry Brown's effort to place a tax extension measure on the June special election ballot. Debbie Pfeiffer Trunnell in the San Bernardino Sun -- 3/8/11

In a World Without Redevelopment -- In reality, the end of redevelopment — and it's looking likely the Legislature will sign off on it — will be a nasty mess with the climax likely to play out in a courtroom rather than an empty office building. Liam Dillon Voiceofsandiego.org -- 3/8/11

San Diego Mayor, Chargers explore alternate stadium funding -- San Diego Mayor Jerry Sanders and Chargers President Dean Spanos explored alternatives Monday to financing a new football stadium if funds from the NFL and downtown redevelopment evaporate. Roger Showley in the San Diego Union-Trib -- 3/8/11

5 GOP senators say Brown budget talks have stalled -- Republican legislators deemed most likely to vote for governor's plan accuse him of refusing to compromise. Quick approval of budget is needed to put cutbacks and tax extensions before voters. Shane Goldmacher in the Los Angeles Times Juliet Williams AP David Siders in the Sacramento Bee Daniel Weintraub HealthyCal.org VAUHINI VARA in the Wall Street Journal Wyatt Buchanan in the San Francisco Chronicle -- 3/8/11

Another big business endorsement for Gov. Brown: SF Chamber backs his budget, special election -- Just three days after a major endorsement from the Bay Area Council, the San Francisco Chamber of Commerce has weighed in with an endorsement for Gov. Jerry Brown's special election and budget plans. Carla Marinucci Chronicle Politics -- 3/8/11

Walters: Tax debate fact, fancy and fudges -- The Capitol's great debate over whether California voters should be given the chance to extend or terminate more than $10 billion a year in temporary taxes may be nearing a climactic moment. Dan Walters in the Sacramento Bee -- 3/8/11

Senate OKs Brown's picks -- The upper house approved Ana Matosantos, who served as former Gov. Arnold Schwarzenegger's finance director, retaining her post in the Brown administration by a vote of 36-1, with just Sen. Joel Anderson, R-Alpine, voting no. Former Democratic Assemblyman John Laird won confirmation as natural resources secretary by a vote of 35-0. Torey Van Oot SacBee Capitol Alert -- 3/8/11

Amazon sales tax bill stalls -- Hotly contested legislation aimed at compelling Amazon and other on-line retailers to collect California sales taxes stalled Monday -- probably temporarily -- in the the Assembly Revenue and Taxation Committee. Dan Walters SacBee Capitol Alert -- 3/8/11

Attorneys union reaches tentative agreement with Brown -- The deal, significant as the first reached by the Brown administration, sets out the labor terms for a 3,700-member union that has been without a current labor pact for nearly four years. Jon Ortiz in the Sacramento Bee -- 3/8/11

McCain back fundraising in CA this week -- Former 2008 presidential candidate John McCain, a strong supporter of gubernatorial hopeful Meg Whitman, is back fundraising in the Bay Area this month -- this time at a pricey benefit to fund campaigns to win a 2012 Republican majority in the U.S. Senate. Carla Marinucci Chronicle Politics Chronicle Politics -- 3/8/11

Harris vs. Cooley: Extremely close but not close enough to recount -- It was the tightest California state election in 20 years – a contest that seesawed back and forth for more than three weeks after the polls closed. Lance Williams California Watch -- 3/8/11

Census Data Will Likely Signal Loss of Political Power for Bay Area -- With the much-anticipated release of 2010 census data for California expected Tuesday, the San Francisco Bay Area faces the prospect of ceding political clout to its upstart neighbor: the fast-growing Central Valley. Jennifer Gollan Bay Citizen -- 3/8/11

End Caltrans as we know it, says Anderson -- Sen. Joel Anderson Monday called on Gov. Jerry Brown to greatly scale-back, if not completely dissolve, the state’s highway agency. The La Mesa Republican said inflated salaries and other costs could be saved by transferring most highway projects to local agencies. Michael Gardner in the San Diego Union-Trib -- 3/8/11

   Tax Measures

Oakland will place $80 parcel tax on special election ballot -- Oakland is facing a $46 million budget deficit in the fiscal year that begins in July, and Mayor Jean Quan said she's hoping voters will agree to contribute about $11 million per year for the next five years by approving the temporary tax. Sean Maher in the Oakland Tribune Matthai Kuruvila in the San Francisco Chronicle -- 3/8/11

   Economy - Jobs

Realtors complain banks make short sales difficult -- Short sales, in which homes are sold for less than is owed on them, have become such obstacle courses for buyers and sellers in California that fewer than three in five homes offered for sale result in a sale, the California Association of Realtors reported Monday. Pete Carey in the Oakland Tribune -- 3/8/11

In downturn, even upscale Placer County has lost much of its luster -- As the region struggles to regain its economic footing, even tony Placer County has lost much of its luster. Phillip Reese and Ed Fletcher in the Sacramento Bee -- 3/8/11

   Education

Fensterwald: Will LAUSD layoffs be a model? -- An appeals court on Monday refused to delay a settlement that will shield children in 45 low-income schools in Los Angeles Unified from layoffs that would create havoc with their education. John Fensterwald educatedguess -- 3/8/11

State budget panel OKs new rules for Cal Grants -- California students who apply to colleges with high loan default and dropout rates - often for-profit schools with aggressive recruitment practices - would no longer be eligible for Cal Grants of up to $9,703 a year under new rules approved by a legislative committee creating a state budget compromise. Nanette Asimov in the San Francisco Chronicle -- 3/8/11

LAUSD projects face shutdown -- State regulators have given Los Angeles Unified until Friday to provide certified construction inspectors at 14 campuses or face a shutdown of the improvement projects for violating state law. Connie Llanos in the Los Angeles Daily News -- 3/8/11

UC Riverside leaders consider sweeping cuts -- The governor's recent call for $500 million in reductions from the UC system is forcing administrators to consider cutting library hours, reducing power usage and charging for computer use. Larry Gordon in the Los Angeles Times -- 3/8/11

Famed state writing program on federal chopping block -- After decades of federal support, an acclaimed writing program that began at UC Berkeley 36 years ago faces a difficult future due to budget cuts agreed to by Congress and the Obama administration. Louis Freedberg California Watch -- 3/8/11

   Environment

Tesla to release a Model S with 300-mile range -- Electric carmaker Tesla Motors plans to offer a limited-edition version of its Model S sedan next year that will have a battery mighty enough to keep the car going for 300 miles on a single charge. The item is in the San Jose Mercury -- 3/8/11

New drought water supply -- A nearly $1 billion project that will insulate 1.4 million East Bay residents from the worst of drought is ready for business after completion of a 10-day test run last week. Mike Taugher in the Contra Costa Times -- 3/8/11

House GOP budget bill aims to slash environmental regulation -- The plan to cut $60 billion from the federal budget targets environmental programs so widely it appears to be as much an ideological gambit as a budgetary one. 'The sheer scope of it is overwhelming,' a UCLA environmental law expert says. Bettina Boxall in the Los Angeles Times -- 3/8/11

Flame retardant industry battles Oregon over ban -- Industry is sparring with the state of Oregon over a ban that could keep food distributors from transporting foods on plastic pallets. Susanne Rust California Watch -- 3/8/11

   Also..

New documents: PG&E could have replaced doomed line, but said its welds were of no risk to public -- In the midst of a major safety upgrade in San Bruno in 1993 and 1994, PG&E decided not to dig up the section of natural gas transmission line that ruptured last September because the company insisted its welds did not pose a risk to the public. Paul Rogers in the San Jose Mercury -- 3/8/11

Bell criminal hearings: Attorneys blocked from questioning former city attorney -- Attorneys representing current and former Bell officials accused of misappropriating funds were stopped numerous times in the middle of cross-examining Edward Lee because the city said it would violate attorney-client privilege. Corina Knoll in the Los Angeles Times -- 3/8/11

   POTUS 44

Obama to resume military trials for Guantanamo detainees -- The decision is a sign of difficulty Obama is having keeping a campaign promise to close the prison at Guantanamo Bay, Cuba. Richard A. Serrano in the Los Angeles Times -- 3/8/11

   Beltway

Anti-Islamic groups go mainstream -- Deep suspicions about Islam in America — about to take center stage in controversial congressional hearing — are also galvanizing an increasingly organized and professional set of political groups, organizations that may play a role in the looming presidential cycle. BEN SMITH & BYRON TAU Politico -- 3/8/11

Voters have warm feelings for Michelle Obama, Chris Christie -- Michelle Obama, former President Bill Clinton and Gov. Chris Christie are hot, while congressional Democratic leaders Nancy Pelosi and Harry Reid – along with former vice presidential candidate Sarah Palin – are not, according to a survey released Monday. JENNIFER EPSTEIN Politico -- 3/8/11