* Updates Since Early This Morning

Election decision may force disclosure of secret donors -- A U.S. Court of Appeals panel refuses to block a ruling requiring tax-exempt organizations that run election-related TV ads to reveal their supporters. Matea Gold in the Los Angeles Times$ -- 5/15/12

S&P issues warning on California finances -- The ratings agency Standard & Poor’s warned on Tuesday that it could downgrade California’s financial outlook if lawmakers don’t pass a credible budget plan this year. Chris Megerian LA Times PolitiCal$ -- 5/15/12

Fitch on new California budget problems: Don't panic -- A Wall Street rating agency on Tuesday called California's new, eye-catchingly large $16-billion deficit "unsurprising" and said it expected little progress until after primary elections next month. Nicholas Riccardi LA Times PolitiCal$ -- 5/15/12

Firms step up fracking disclosure; activists want it banned -- Oil firms are pledging to step up disclosure of fracking operations in California as the Brown administration and state lawmakers move to write rules governing the controversial procedure. Michael J. Mishak LA Times PolitiCal$ David Siders SacBee Capitol Alert -- 5/15/12

California high-speed rail project given conditional blessing -- The latest plan for building a California bullet train system got a very conditional blessing Tuesday from a "peer review committee" of transportation experts. Dan Walters SacBee Capitol Alert -- 5/15/12

Voter distrust will be a hurdle for Brown tax plan -- Gov. Jerry Brown is pleading with Californians to raise their taxes as part of his solution for solving the state's budget deficit, but it's uncertain whether voters will be in an accepting mood come November. JUDY LIN Associated Press -- 5/15/12

Aanestad campaign: LaMalfa aide behind attack website -- An anonymous site attacking Republican congressional candidate Sam Aanestad has sparked legal action, allegations of campaign violations and calls for staff firings in the 1st Congressional District contest. Torey Van Oot SacBee Capitol Alert -- 5/15/12

Brown, in 'management mode,' chides those who oppose tax hikes on wealthy -- A day after releasing a revised budget that relies heavily on revenues from his not-yet-passed tax initiative, Gov. Jerry Brown chided those who oppose boosting taxes on the wealthy. Steven Harmon in the San Jose Mercury -- 5/15/12

Occupy, union groups rally for L.A. banking ordinance -- More than a hundred demonstrators, including members of the Occupy movement and union groups, held signs and blew whistles on the steps of City Hall on Tuesday to support a proposal requiring banks doing business with the city of Los Angeles to report on foreclosures, charitable giving and other activities. Catherine Saillant in the Los Angeles Times$ -- 5/15/12

Jerry Brown defends using housing money for budget -- Gov. Jerry Brown this morning defended his proposal to use $410 million in proceeds from the national mortgage settlement to help solve California's budget deficit, offsetting other costs. David Siders SacBee Capitol Alert -- 5/15/12

Boehner: Spending cuts must offset debt limit hike -- House Speaker John Boehner said Tuesday that when Congress raises the nation's borrowing cap he will again insist on spending cuts and budget reforms to offset the increase. ANDREW TAYLOR Associated Press -- 5/15/12

Fiscal analyst agrees with Brown forecast, increases Facebook estimate -- Gov. Jerry Brown has weathered criticism for making an aggressive bet on revenues in last year's budget act, but the state's top fiscal analyst approves of his latest forecast, which is more conservative. Kevin Yamamura SacBee Capitol Alert -- 5/15/12

Analysis: Gay marriage decision not working in Obama's favor so far -- It’s been one week since President Obama, prodded into action by Vice President Joe Biden’s remarks on a Sunday talk show, granted Robin Roberts of ABC News an interview in which he revealed his personal policy shift on gay marriage. Paul West in the Los Angeles Times$ -- 5/15/12

Fox: The Backwards May Budget Revise: Taxes Before Reforms -- Governor Jerry Brown’s press conference on the May budget revise served the dual purpose of revealing the new budget and kicking off his campaign to pass his tax initiative on November’s ballot. The governor wasted no time in tying the success of his budget to his initiative income and sales tax increase plan. Joel Fox Fox & Hounds -- 5/15/12

Suit seeks to overturn 'outdated' teacher job protections -- A nonprofit backed partly by organizations known for battling teachers unions has filed litigation challenging the constitutionality of California laws that make it more difficult to fire or lay off ineffective teachers. Howard Blume in the Los Angeles Times$ -- 5/15/12

 

   California Policy and Politics This Morning

Optimistic projections led to dramatic surge in California budget deficit -- Gov. Jerry Brown announced Monday that the state budget deficit had grown by a remarkable 70 percent since January, but fiscal experts said the economy had little to do with it. Kevin Yamamura in the Sacramento Bee -- 5/15/12

Jerry Brown's plea to voters: 'Please increase taxes temporarily' -- Gov. Jerry Brown's proposal for closing California's $16-billion funding gap includes 4-day state workweeks and Medi-Cal cuts. He warns that cuts will be even more severe if voters reject tax hikes on the November ballot. Chris Megerian and Anthony York in the Los Angeles Times$ Steven Harmon, Josh Richman, Sharon Noguchi and Karen de Sá in the San Jose Mercury Judy Lin Associated Press Christina Villacorte in the Los Angeles Daily News JIM MILLER in the Riverside Press BRIAN JOSEPH in the Orange County Register Julie Small KPCC LA ADAM NAGOURNEY in the New York Times$ JIM CARLTON in the Wall Street Journal$ -- 5/15/12

Brown proposes 4-day week for state workers -- Gov. Jerry Brown proposed significant cuts to state courts and state worker pay - including reducing state employees' workweek to four days - to help close a $15.7 billion gap between revenue and expenses for California's fiscal year that begins July 1. Wyatt Buchanan in the San Francisco Chronicle Jon Ortiz in the Sacramento Bee -- 5/15/12

K-12 schools spared, for now -- The state budget for next year has deteriorated by $6 billion since January, but Gov. Jerry Brown is not proposing to cut money for K-12 schools – for now. But if voters in November reject Brown’s proposed $9 billion tax increase, schools will be a $5.5 billion piece of what the governor has called “a day of reckoning.” John Fensterwald educatedguess Louis Freedberg EdSource Tom Chorneau SI&A Cabinet Report -- 5/15/12

Orange County schools face deeper cuts under Brown's latest plan -- Orange County educators will need to prepare budgets that anticipate losing $5.5 billion in statewide school funding in 2012-13 – about $700 million more than previously anticipated – under a worst-case scenario outlined by Gov. Jerry Brown on Monday. FERMIN LEAL in the Orange County Register -- 5/15/12

Proposed state budget cuts worry Valley -- The proposed state budget revision Gov. Jerry Brown unveiled Monday left Valley hospitals, social service agencies and colleges bracing for deeper cuts to programs, services and classes. John Ellis, Heather Somerville and Barbara Anderson in the Fresno Bee -- 5/15/12

How Brown's budget affects San Diego -- Gov. Jerry Brown’s sharpened budget knife slices through San Diego County, but just how deep the pain spreads depends on the next steps taken by lawmakers and voters. Michael Gardner UT San Diego -- 5/15/12

Rallies in California protest social service cuts -- Sara Gonzales, who's unemployed and raising her grandson, said she'd be devastated without CalWORKS, the state's welfare-to-work program for families that Gov. Jerry Brown proposed cutting on Monday. But she worries most for others. Carolyn Jones in the San Francisco Chronicle -- 5/15/12

California budget cuts: 'All courts are going to feel the pain' -- State judicial leaders warned Monday that the proposed cuts for the California courts may jeopardize public access to the justice system. Maura Dolan LA Times PolitiCal$ -- 5/15/12

California lawmakers hope to soften some of governor's cuts -- Democratic legislators signaled Monday that they will come up with alternatives to some of the deep cuts in social service programs proposed by Gov. Jerry Brown. The governor proposed a revised spending plan for the fiscal year starting July 1 that closes a $16-billion budget gap. Patrick McGreevy LA Times PolitiCal$ -- 5/15/12

Walters: Jerry Brown aims new budget at tax vote -- Just a few months ago, Gov. Jerry Brown chastised "declinists" and "dystopian journalists" for their pessimism about California, particularly about emerging from a deep recession. Dan Walters in the Sacramento Bee -- 5/15/12

California offered piece of the action from Internet poker -- As state leaders sweat over another possible round of cuts from schools and social services, casino operators are offering officials a cut of the action if they will legalize Internet poker in California. Patrick McGreevy in the Los Angeles Times$ -- 5/15/12

Gov. Brown has his own plans for mortgage settlement cash -- Gov. Jerry Brown apparently has his own plans for a $410-million all-cash slice of a national mortgage settlement: Plug some of the holes of California’s massive deficit. Alejandro Lazo in the Los Angeles Times$ -- 5/15/12

Beth Gaines' mailer leaves out majority of current constituents -- Assemblywoman Beth Gaines has sparked a campaign controversy by spending state funds to send fliers almost exclusively to residents of her redrawn district who can vote for her in June. Jim Sanders in the Sacramento Bee -- 5/15/12

George Wallace mailer for Pauly draws complaint -- Back in 1967, when Gov. George Wallace of Alabama was running for president on the American Independent Party ticket, Robert Walters was his California campaign manager. Andrew Galvin in the Orange County Register -- 5/15/12

Big money could change Assembly race odds -- Just when it looked like Newport Beach Councilwoman Leslie Daigle might get squeezed out of the 74th Assembly District race, a moderate Republican laden with money bags has appeared on the horizon. Martin Wisckol in the Orange County Register -- 5/15/12

California ballot measure on death penalty faces legal challenge -- The Sacramento-based Criminal Justice Legal Foundation petitioned the 3rd District Court of Appeals today to remove from the November ballot a proposal to abolish the death penalty in California, arguing it violates the state's "single-subject rule" for initiatives. David Siders SacBee Capitol Alert Howard Mintz in the Contra Costa Times -- 5/15/12

Prop. 28 tackles CA Legislature term limits -- Twenty-two years after passing one of the strictest term-limit measures in the nation, Californians will consider whether to tweak a system critics say has resulted in an inexperienced Legislature that has largely ceded its power to lobbyists and other special interests. Marisa Lagos in the San Francisco Chronicle -- 5/15/12

NYC's Mayor Bloomberg ponies up for California anti-smoking measure -- Saying he wants to help fight tobacco company interests, New York City Mayor Michael Bloomberg on Monday kicked in up to $500,000 to support Proposition 29 on the June 5 California ballot. He challenged supporters to match that amount, yielding a potential $1 million to help pass the measure. Jean Merl LA Times PolitiCal$ -- 5/15/12

Senate OKs bill to increase fines for cell phone use while driving -- California motorists caught violating the state's rules on using cell phones behind the wheel could face bigger fines under legislation approved by the state Senate today. Torey Van Oot SacBee Capitol Alert Don Thompson Associated Press -- 5/15/12

Activists' study doubts safety at California nuke plant -- A report commissioned by an environmental group warned Tuesday that running California's San Onofre nuclear plant at reduced power would not resolve problems with badly worn tubing that have kept its twin reactors offline for more than three months - and might make it worse. MICHAEL R. BLOOD Associated Press Abby Sewell in the Los Angeles Times$ -- 5/15/12

   Economy

Facebook will raise stock price, could be first U.S. company worth $100 billion at IPO -- Facebook will raise the price of shares for its initial public offering, possibly vaulting the world's most popular social network to the first $100 billion valuation of a U.S. company at the time of its public debut. Jeremy C. Owens and Brandon Bailey in the San Jose Mercury -- 5/15/12

   Education

Fensterwald: Big changes to weighted formula -- Responding to criticisms of his plan for school finance reform, Gov. Jerry Brown has significantly revised his weighted student formula, raising the base amount that all districts will receive, reducing the differences between district “winners” and “losers” by reducing extra money for disadvantaged students, assuring districts they will be repaid for past budget cuts, and adding contingencies in case optimistic revenue projects come up short. John Fensterwald educatedguess -- 5/15/12

Oikos' nursing program put on state probation -- A small vocational nursing program in Oakland that lost six students in a campus massacre last month is now facing a separate challenge, with state officials placing the program on a form of probation. Demian Bulwa in the San Francisco Chronicle -- 5/15/12

Vocational schools facing tougher disclosure requirements -- The state Assembly on Monday passed a bill requiring private vocational schools to disclose their job placement rates and any problems with their educational programs that could limit students' employment prospects. JENNIFER GOLLAN Bay Citizen -- 5/15/12

   Health Care

Brown proposes deeper cuts in safety net -- Gov. Jerry Brown’s revised budget for the coming year proposes deeper cuts in the health and social safety net, with hospitals, nursing homes and home care for disabled people and older adults taking the biggest hits. Daniel Weintraub HealthyCal.org Lisa Aliferis KQED State of Health Christina Jewett California Watch -- 5/15/12

Tearing Down the Walls of Elder Isolation -- The Senior Center Without Walls is the brainchild of a gerontologist who eight years ago saw how crippling the health effects of isolation could be for older adults whose social lives were curtailed by wheelchairs, ill health, and the deaths of friends. Matt Perry HealthyCal.org -- 5/15/12

   Occupy

UC police arrest 9 as they clear Occupy the Farm -- A three-week-long protest on UC Berkeley agricultural research land in Albany came to a quiet close early Monday when police cleared out a small group of protesters who had set up an urban farming camp. Michael Cabanatuan, Ellen Huet in the San Francisco Chronicle -- 5/15/12

   Immigration

Immigration permit auction touted as reform that would aid economy -- America's decades-old immigration system should be replaced with an auction of work permits, says a UC Davis economist who is attracting attention on Capitol Hill. Matt O'Brien in the Contra Costa Times -- 5/15/12

Filner, Davis join call for justice in border tasing death -- San Diego Reps. Bob Filner and Susan Davis, along with 14 other members of Congress, sent letters to federal officials calling for justice on behalf of Anastasio Hernandez Rojas, the undocumented immigrant who was tased, beaten and later died while in the custody of U.S. Border Patrol. Elizabeth Aguilera UT San Diego -- 5/15/12

   Also..

Yahoo's Scott Thompson gets no severance -- Yahoo began closing ranks behind its abruptly reshuffled leadership team on Monday, but stayed mum on how it would proceed after firing its second CEO in the past eight months. Casey Newton in the San Francisco Chronicle -- 5/15/12

Coliseum Commission approves controversial new lease with USC -- The Los Angeles Memorial Coliseum Commission on Monday approved a landmark agreement to surrender public control of the 88-year-old stadium to USC. Rong-Gong Lin II in the Los Angeles Times$ -- 5/15/12

Jail deputies acted like gang members, ex-sheriff's officials say -- Two retired Los Angeles County sheriff's supervisors Monday painted a violent picture of life inside Men's Central Jail, recounting for a county jails commission tales of deputies beating prisoners, ignoring bosses, forming cliques and engaging in off-duty misconduct. Jack Leonard and Robert Faturechi in the Los Angeles Times$ -- 5/15/12

Saunders: Pardon attorney owes Clarence Aaron a 2nd chance -- In 1993, a jury convicted Clarence Aaron for his role in two planned cocaine deals. Aaron was a 23-year-old college student. It was his first offense. Debra J. Saunders in the San Francisco Chronicle -- 5/15/12

Oakland: TV news reporter, photographer have camera and tripod stolen in brazen daylight theft -- A local television news reporter and her photographer had their video camera and tripod stolen in a brazen daylight theft as they were doing a story on San Pablo Avenue on Monday afternoon, but their story still led the 5 p.m. broadcast. "We're OK, we're just rattled," said NBC Bay Area reporter Jodi Hernandez. Kristin J. Bender in the San Jose Mercury -- 5/15/12

   POTUS 44

Obama trying to undermine Romney's record on jobs -- President Barack Obama tried Monday to tarnish Mitt Romney as a corporate titan who got rich by cutting rather than creating jobs, opening a new effort to undercut the Republican's claims that his background of business success is just what America needs in a time of deep economic uncertainty. Ken Thomas Associated Press Paul West and Michael A. Memoli in the Los Angeles Times$ -- 5/15/12

   Beltway

Poll: Romney has slight edge over Obama -- Presumptive Republican presidential candidate Mitt Romney has a slight edge over President Obama in the race for the White House in the latest CBS News/New York Times poll. Lucy Madison CBS -- 5/15/12

Roseanne Barr seeks Green Party presidential spot -- The surreal moment at the Green Party's recent presidential debate in San Francisco came just after it ended, when candidate Roseanne Barr - yes, that Roseanne Barr - got campaign advice from punk pioneer and previous Green Oval Office candidate Jello Biafra. He urged Barr to "use your humor." Joe Garofoli in the San Francisco Chronicle -- 5/15/12

Group sues Senate to scrap filibuster -- For years, critics of the filibuster have failed to convince senators to change the procedural delaying tactic. Now they’re taking their case to the courts. SCOTT WONG Politico -- 5/15/12