*Updates

Yes on 29 campaign refuses to concede on tobacco tax initiative -- Proponents of the tobacco tax initiative on Tuesday’s state ballot refused to concede Thursday, saying they still hope to overcome the current 1.4% margin of defeat as elections officials across California tally an estimated 1 million uncounted ballots. Phil Willon in the Los Angeles Times$ -- 6/7/12

California courts' administrative office lays off 29 employees -- Twenty-nine layoffs were announced today by California's Administrative Office of the Courts, which sets policy and distributes funding for all levels of the state's court system. Jim Sanders SacBee Capitol Alert -- 6/7/12

San Onofre nuclear plant out of service for the summer -- The plant has been shuttered since Jan. 31 while officials probe the extent and cause of unusual wear on tubes that carry radioactive water in the plant's newly replaced steam generators. Abby Sewell in the Los Angeles Times$ -- 6/7/12

13,000 California state workers win back pay in furlough lawsuit -- An Alameda County judge has ruled that state engineers and scientists are owed back wages because they were excessively furloughed last year. Jon Ortiz in the Sacramento Bee -- 6/7/12

Unions protest IHSS budget cuts at California Capitol -- A little under a thousand people gathered at the Capitol Thursday to deliver 75,000 petitions and ask legislators to reject cuts to the in-home care system. Hannah Madans SacBee Capitol Alert -- 6/7/12

California's top-two primary backer says campaign finance next -- An architect of California's new top-two primary system has turned his attention to shaking up how campaigns are funded. Torey Van Oot SacBee Capitol Alert -- 6/7/12

Gov. Jerry Brown, legislators $2 billion apart on budget -- Gov. Jerry Brown and Democratic legislative leaders have been meeting daily this week behind closed doors to resolve about $2 billion in differences over budget cuts that would affect the poorest Californians. Facing a June 15 constitutional deadline, Democratic leaders say they intend to send Brown a budget by next Friday, and preferably a budget that the governor will sign. Kevin Yamamura SacBee Capitol Alert Chris Megerian and Anthony York in the Los Angeles Times$ BRIAN JOSEPH in the Orange County Register -- 6/7/12

At least 800,000 ballots still uncounted in California -- The votes are all in for the California primary, but many remained uncounted Wednesday, leaving some contests still up in the air, notably the statewide question on whether to increase the tax on tobacco to fund cancer research. JUDY LIN Associated Press -- 6/7/12

More than $1 million spent on home renovations for CSU presidents -- With classes being cut and costs rising, public and private money spent on renovations for the residences of incoming CSU presidents elicits dismay. Carla Rivera in the Los Angeles Times$ -- 6/7/12

No letup in state Senate fight -- If voters in western Riverside County grew a little tired of the past weeks’ onslaught of mailers in the 31st Senate District primary fight, they haven’t seen anything yet. JIM MILLER in the Riverside Press -- 6/7/12

Fox: Ray Bradbury Ventured into the Strange World of CA Politics -- I personally know of one instance when the great science fiction/fantasy writer, Ray Bradbury, took an interest in California politics. Bradbury, who passed away Tuesday at age 91, was the star attraction at a fundraiser for economist Arthur Laffer’s U.S. Senate campaign in late 1985. Joel Fox Fox & Hounds -- 6/7/12

Fed chairman doesn't signal immediate action on economy in talk to Congress -- Chairman Ben Bernanke said the Federal Reserve is prepared to take further steps to lift the U.S. economy if it weakens. But he didn't signal any imminent action in testimony before a congressional panel Thursday. Martin Crutsinger Associated Press Zachary A. Goldfarb in the Washington Post -- 6/7/12

California state workers ask: Will minimum wage issue return? -- Several jittery state workers have called and emailed in the last week asking whether their pay might be withheld if lawmakers don't reach a budget deal by the June 30 fiscal year-end. The short answer: No. Jon Ortiz in the Sacramento Bee -- 6/7/12

Facebook's big jump was in Menlo Park home prices -- Facebook's initial public offering may have flopped on Wall Street but it sparked prices for homes surrounding its Menlo Park headquarters. Pete Carey in the Contra Costa Times -- 6/7/12

California dangerously low on college degrees, group says -- To sustain the state economy, California colleges and universities will need to step up the number of graduates by 2.3 million by 2025, a group of business and civic leaders said Thursday. Matt Krupnick in the San Jose Mercury -- 6/7/12

 

   California Policy and Politics This Morning

Few centrists advance in California's new primary system -- California's new voting system may have been designed largely to shake up the polarized state Capitol, but Tuesday's election made it clear that the promised political earthquake will have to wait. Michael J. Mishak and Anthony York in the Los Angeles Times$ -- 6/7/12

California Centrists See Their Stock Rise -- California's first open primary in more than a decade set the stage for a political future in which centrist voters are likely to have more influence. JIM CARLTON and JUSTIN SCHECK in the Wall Street Journal$ Torey Van Oot in the Sacramento Bee -- 6/7/12

DeMaio, Filner must chart new course -- They were able to stir up enough partisan passion to stave off the threat of an independent insurgent, but the path to the San Diego Mayor’s Office for Republican City Councilman Carl DeMaio and Democratic Rep. Bob Filner will be far different as they each court moderate voters to their side for the November runoff. Craig Gustafson UT San Diego -- 6/7/12

California's new setup a hurdle for Democrats' bid to retake House -- The party fails to secure a November election slot in an Inland Empire district it was counting on. Redrawn lines and the 'top two' rule produce at least seven same-party races for Congress. Jean Merl and Richard Simon in the Los Angeles Times$ -- 6/7/12

California primary results: GOP catches a ‘top-two’ break -- House Republicans got a big break under California’s new primary system Tuesday, after Democrats failed to get a candidate into the general election for Rep. Gary Miller’s swing district. Aaron Blake in the Washington Post -- 6/7/12

Democrats reeling from loss -- The path to a Democratic majority in the U.S. House of Representatives runs straight through California, party leaders have said for months. BEN GOAD in the Riverside Press -- 6/7/12

'Top two' primary puts stamp on two dozen races -- California voters in November will see ballots unlike any others they have ever been asked to fill out before. Michael Gardner UT San Diego -- 6/7/12

California's top-two primary will have some voters seeing double in November -- The results of California's inaugural "top-two" primary are in, and some voters will be seeing double in November. Josh Richman in the Contra Costa Times -- 6/7/12

Herdt: An election to confound Will Rogers -- Will Rogers' observation, a classic in American political folklore, has been proved true many times over the years. "I belong to no organized party," he said. "I'm a Democrat." But today in Ventura County that line rings hollow. Timm Herdt in the Ventura Star -- 6/7/12

Tobacco-tax measure likely to lose in close race -- Supporters and opponents agreed Wednesday that the race was still too close to call, with 49.2 percent of voters in favor of raising cigarette taxes by $1 a pack and 50.8 percent opposed. The final tally may not be known for two weeks. Tracey Kaplan in the San Jose Mercury Phil Willon in the Los Angeles Times$ Kevin Yamamura in the Sacramento Bee -- 6/7/12

Skelton: Higher tobacco tax? It's still a no-brainer -- Regardless of the final vote tally, Proposition 29 dealt a serious blow to the tobacco industry. That's my view, at least. It requires, admittedly, an assumption that is hardly rock solid: that the Legislature will conjure up the guts and integrity to raise tobacco taxes even if California voters didn't. George Skelton in the Los Angeles Times$ -- 6/7/12

California pension cuts may have ripple effect -- Decisive victories for ballot proposals cutting retirement benefits for government workers in two of the largest cities in the U.S. emboldened advocates seeking to curb pensions in state capitols and city halls across the nation. ELLIOT SPAGAT Associated Press -- 6/7/12

Pension votes in cities put pressure on Gov. Brown -- After voters in San Jose and San Diego, two of California's largest cities, rolled back public employee pensions in Tuesday's election, pressure is mounting on Gov. Jerry Brown and the Legislature to take similar action to deal with financial crises that are crippling state and local governments. Joe Garofoli in the San Francisco Chronicle -- 6/7/12

Labor's losses appear to be pension reformers' gains -- Labor's steep losses at the polls Tuesday gave new hope to pension reformers throughout California and perhaps new impetus to Gov. Jerry Brown and Democratic leaders to strike a deal on lowering the cost of public-employee pensions. Steven Harmon in the Contra Costa Times Catherine Saillant and Tony Perry in the Los Angeles Times$ -- 6/7/12

Labor Faces New Challenge -- Organized labor, reeling from blows to government workers in Wisconsin and California elections, is grappling with the prospect of diminished political clout and fewer members in public-sector unions that have formed the core of the movement's power in recent years. KRIS MAHER and MELANIE TROTTMAN in the Wall Street Journal$ -- 6/7/12

In Stockton bankruptcy, pensions may not be cut -- As in the Vallejo bankruptcy, public employee pensions may not be targeted for cuts if Stockton files for bankruptcy on June 26, a step authorized by the city council this week if mediation fails. Ed Mendel Calpensions.com -- 6/7/12

Two Sacramento-area Assembly candidates wait to learn who they'll face in the fall -- Beth Gaines and Ken Cooley knew Wednesday that they'd won a spot on the November ballot for a Sacramento-area Assembly seat – but they couldn't be sure who they'll run against. Jim Sanders in the Sacramento Bee -- 6/7/12

Reps. Howard Berman, Brad Sherman prepare for tough battle in November congressional race -- In what is expected to be a take-no-prisoners sequel, Reps. Howard Berman and Brad Sherman prepared for the second round of their political fight for the newly drawn 30th Congressional District. Rick Orlov in the Los Angeles Daily News -- 6/7/12

Morain: Old lions challenged in new political order -- Bill Bloomfield probably won't win his congressional race in November, no matter how much he spends. But he has emerged as a poster politician for California's new political order. Dan Morain in the Sacramento Bee -- 6/7/12

Hot issues, cold electorate -- A peculiarly California election: Its historical significance was matched only by its miserable turnout. John Howard Capitol Weekly -- 6/7/12

CalBuzz: A June (not November) Electorate Explains the Vote -- Voters gave the back of their hand to public employees unions from San Diego and San Jose to Green Bay and Eau Claire. But before left-wingers in California start slitting their wrists and right-wingers here start their victory dance, let’s remember the important point about the state’s historic low turnout: it was a much more conservative electorate than we’ll see in November. Jerry Roberts and Phil Trounstine CalBuzz -- 6/7/12

AD 39: Alarcon Is Trailing Bocanegra Because He's Lost Touch With 'Comadre Network' in Northeast Valley, Says Political Consultant -- At final count, Bocanegra finished in first place with 36.5 percent of the vote. Alarcon took a distant second with 27 percent. So what went wrong? Simone Wilson LA Weekly -- 6/7/12

‘Birther’ Senate candidate suspects election fraud -- Laguna Niguel attorney Orly Taitz, best known for lawsuits alleging Barack Obama is not a natural-born citizen, suspects her fourth place finish in the U.S. Senate race is the result of ballot-counting machines rigged against her, she writes on her blog this morning. Martin Wisckol in the Orange County Register -- 6/7/12

President of L.A. Coliseum Commission resigns abruptly -- The president of the Los Angeles Memorial Coliseum Commission resigned abruptly Wednesday, saying he quit because his work on a deal to grant USC stewardship of the nearly bankrupt stadium was complete. Paul Pringle and Rong-Gong Lin II in the Los Angeles Times$ -- 6/7/12

Trutanich to seek 2nd L.A. city attorney term despite D.A. defeat -- Fresh off a stinging defeat in the race for county district attorney, Los Angeles City Atty. Carmen Trutanich said Wednesday that he intends to seek reelection to his City Hall office. David Zahniser in the Los Angeles Times$ -- 6/7/12

State withholds details on developmental center slaying -- In early 2009, a 16-year-old girl with mental retardation was slain at the Fairview Developmental Center in Orange County. The state-operated institution didn’t tell the public about the deadly assault. | Ryan Gabrielson and Joanna Lin California Watch -- 6/7/12

   Economy

Prop. A impact on state funds in dispute -- San Diegans have placed potentially hundreds of millions of dollars in legal limbo after overwhelmingly approving Proposition A, a measure that effectively bans labor-friendly contracts on city funded projects. Jen Lebron Kuhney UT San Diego -- 6/7/12

Mortgage relief still far off for many Californians -- New rules designed to speed relief to struggling California homeowners may not bring quick assistance after all. AARON GLANTZ Bay Citizen -- 6/7/12

Despite budget deficit, Muni spends $1 million to hire more drivers -- In a move it says will reduce overtime costs, Muni has quietly hired 88 part-time drivers to work full-time for the transit agency. The Bay Citizen has learned that Muni made those hires within the past two weeks. ZUSHA ELINSON Bay Citizen -- 6/7/12

   Taxes - Fees

Fire district prepares for layoffs, station closures following parcel tax defeat -- East Contra Costa Fire District officials are preparing for station closures and layoffs in the next several weeks following a failed parcel tax. Rowena Coetsee in the Contra Costa Times -- 6/7/12

   Education

Parcel taxes beat the odds -- Voters remain up in the air about passing a statewide tax to help schools, according to recent polls. But given a chance to support local schools exclusively, more than two-thirds of voters in nine school districts said yes – a wide enough margin to pass a parcel tax. John Fensterwald educatedguess -- 6/7/12

UCLA faculty to vote on ending state funding of MBA program -- UCLA faculty leaders are scheduled to decide Thursday whether the Anderson School of Management should end all reliance on state funding for its flagship master's degree program and instead rely on tuition and donations. Larry Gordon in the Los Angeles Times$ -- 6/7/12

Indians, Taiwanese among California's most educated -- Californians who are Asian Indian or Taiwanese are among the most highly educated in the state, recently released census data shows. Among both groups, about 7 out of 10 people ages 25 and older hold at least a bachelor's degree. On average, 3 out of 10 Californians have earned a bachelor's degree or higher. Joanna Lin California Watch -- 6/7/12

Green Dot, teachers local reach accord on new evaluation tool -- With efforts stalled in Sacramento to craft a new system for assessing teacher performance, Green Dot Public Schools announced Wednesday approval of a contract with its teachers that includes a sophisticated, multidimensional evaluation tool that some believe may serve as a model for the rest of California. Tom Chorneau SI&A Cabinet Report -- 6/7/12

Computers Grade Essays Fast ... But Not Always Well -- Imagine a school where every child gets instant, personalized writing help for a fraction of the cost of hiring a human teacher — and where a computer, not a person, grades a student's essays. It's not so far-fetched. Some schools around the country are already using computer programs to help teach students to write. MOLLY BLOOM NPR -- 6/7/12

   Health Care

Type of stem cell may contribute to heart disease -- UC Berkeley scientists have discovered a type of stem cell that appears to lie dormant in blood vessel walls for decades before waking up and causing the arterial hardening and clogging that are associated with deadly strokes and heart attacks. Erin Allday in the San Francisco Chronicle -- 6/7/12

Extended foster care aims to reduce homelessness -- The Ventura resident grew up in the state’s foster care system, and when she aged out in 2010, she didn’t know the first thing about finding an apartment, signing a lease or paying rent. She didn’t even know how to go grocery shopping. Hannah Guzik HealthyCal.org -- 6/7/12

   Environment

Warming nears point of no return, scientists say -- The Earth is reaching a "tipping point" in climate change that will lead to increasingly rapid and irreversible destruction of the global environment unless its forces are controlled by concerted international action, an international group of scientists warns. David Perlman in the San Francisco Chronicle -- 6/7/12

   Occupy

Police response to UC Berkeley Occupy protests is criticized -- UC Berkeley's independent Police Review Board says it was 'disturbed' by campus officers' swift use of batons against Occupy Wall Street protesters in November. Stephen Ceasar in the Los Angeles Times$ -- 6/7/12

   Also..

Homeless veterans battle to use housing vouchers -- Brett Smith's buddies don't visit him in his new apartment, three blocks from Ocean Beach and a world away from his old stomping grounds in the Tenderloin. And Smith couldn't be more pleased about the solitude. Heather Knight in the San Francisco Chronicle -- 6/7/12

Sacramento’s army -- While Sacramento law-enforcement officials gear up for another grueling round of pensions-vs.-layoffs brinksmanship, at least their supply of automatic rifles and grenade launchers is secure. Raheem F. Hosseini Sac News & Review -- 6/7/12

   POTUS 44

Obama embraces gay, lesbian supporters at fundraiser -- President Obama could have been talking about Vito Imbasciani when he told a roomful of supporters at a gay-rights gala here Wednesday that seeing tears streaming down the faces of gay Americans after he repealed Don’t Ask, Don’t Tell has ranked among the highlights of his presidency. Amy Gardner and Felicia Sonmez in the Washington Post -- 6/7/12

Obama scoops up $2 million at 2 San Francisco events -- President Obama, on a two-stop campaign fundraising drive in San Francisco Wednesday, talked about the Bay Area's innovation and public-private partnerships but made no mention of the failed recall of Wisconsin Gov. Scott Walker on Tuesday, which Republican leaders have said was a blow to the president's 2012 agenda. Carla Marinucci in the San Francisco Chronicle -- 6/7/12

Obama back to Bay Area for more campaign cash -- Spending a little more than four hours on the ground, the president mingled with officials and supporters at San Francisco International Airport, sped to campaign events in the city that generated more than a million dollars and then was back at the airport to fly to other re-election activities in Southern California. Mike Rosenberg in the San Jose Mercury -- 6/7/12

   Beltway

Saunders: So, Dianne Feinstein is taller than 23 dwarves -- Dianne Feinstein, California's most popular politician, garnered 49.3 percent - less than half - of the vote on election day Tuesday. Winning 1.8 million votes, Feinstein trounced her 23 challengers handily in what wags call California's "jungle primary." Debra J. Saunders in the San Francisco Chronicle -- 6/7/12

The return of Sheldon Adelson -- Sheldon Adelson is back on the market with talk of giving at least $1 million — and possibly much more — to the Mitt Romney-affiliated super PAC Restore Our Future, POLITICO has learned. KENNETH P. VOGEL Politico -- 6/7/12