* Updates

Gov. Jerry Brown, Democrats approach deal on welfare cuts -- Gov. Jerry Brown and legislative Democrats are nearing a deal on welfare-to-work cuts that would reduce the amount of time families could receive full aid and child care, but with exemptions such as one for people in areas with high unemployment. Kevin Yamamura SacBee Capitol Alert -- 6/20/12

With runoff looming, Bruce McPherson quits GOP: Longtime moderate Republican renounces partisanship -- The man long known as the only Republican who could get elected in Santa Cruz is no longer a Republican. Jason Hoppin in the Santa Cruz Sentinel -- 6/20/12

Assemblyman Hernandez set for jury trial on drunk driving charges -- Assemblyman Roger Hernandez (D-West Covina) agreed Wednesday to stand trial before a jury Aug. 7 on two misdemeanor counts of drunken driving stemming from his arrest March 27 in Concord. Patrick McGreevy LA Times PolitiCal$ -- 6/20/12

California's pension gap widened in 2010, research center says -- California's public retirement systems' pension obligations were a combined $112 billion beyond the value of their assets in 2010, according to a report released this week, with anticipated retiree health costs adding another $77 billion in unfunded liabilities. Jon Ortiz in the Sacramento Bee -- 6/20/12

Federal Reserve downgrades forecasts for growth, employment -- The Federal Reserve on Wednesday sharply lowered its economic growth forecasts through 2014 and projected that unemployment could remain above 8% through next year. Jim Puzzanghera in the Los Angeles Times$ -- 6/20/12

Stockton Slide To Bankruptcy Measured In More Funerals -- Salvador Cervantes was about to set up a booth with other vendors at the Stockton Flea Market where he sells jewelry when two gunmen demanded his car keys. Alison Vekshin Bloomberg -- 6/20/12

Election-day voter registration advances in California Legislature -- Hoping to boost voter turnout, state lawmakers have advanced a measure that would allow citizens to register to vote on election day. Patrick McGreevy LA Times PolitiCal$ -- 6/20/12

Lawmaker drops California bill banning allergy treatment by chiropractors -- Republican Sen. Bob Huff has decided to drop legislation that would ban chiropractors from treating allergies now that new rules prohibiting the use of laser therapy for the condition are set to take effect. Torey Van Oot SacBee Capitol Alert -- 6/20/12

Ashton Kutcher's company sues DMV over reality show contract -- Ashton Kutcher's television production company is suing the state for $1.44 million, claiming it backed out of a deal to participate in a reality show centered on the Department of Motor Vehicles. Richard Winton in the Los Angeles Times$ -- 6/20/12

Bloomberg says San Diego drones are accident prone -- An analysis by the Bloomberg news service says drones developed by the San Diego defense contractors Northrop Grumman and General Atomics Aeronautical Systems are among the most accident prone UAVs in the Air Force. The study makes reference to a Northrop drone that crashed and burned in Maryland last week. Gary Robbins UT San Diego -- 6/20/12

Holder Cited for Contempt by U.S. House Panel in Party-Line Vote -- A U.S. House committee brushed aside President Barack Obama's claim of executive privilege and held Attorney General Eric Holder in contempt of Congress for failing to turn over documents related to a law enforcement effort to track guns to Mexican drug cartels. Seth Stern Bloomberg -- 6/20/12

Romney campaign cuts press call short after immigration questions -- Mitt Romney's campaign cut a press call short Wednesday after reporters started asking questions about immigration. Justin Sink The Hill -- 6/20/12

Obama campaign predicts $1 billion in TV spending by GOP -- Senior officials in President Obama’s re-election campaign predicted Wednesday that Republicans will spend upwards of $1.2 billion on television ads in the general election, a sum they are unlikely to match. Rachel Weiner and Chris Cillizza in the Washington Post -- 6/20/12

Obama super PAC raised $4 million in May, $40 million overall -- Priorities USA Action, the leading Democratic-affiliated super PAC, collected $4 million in May, its best month of fundraising since its inception and a sign, its founders argue, of its growing momentum. Chris Cillizza in the Washington Post -- 6/20/12

On Spending Limits and the Misuse of Robin Hood’s Name -- Fellow Fox and Hounds contributor Joe Mathews took me to task yesterday claiming my stand on a spending limit was wrong because initiatives rarely work out as planned. Joel Fox Fox & Hounds -- 6/20/12

Quinn: Independent Expenditures – California’s Super PACS -- The big story in this primary election, and probably this fall, will not be the candidate campaigns, it will be the independent expenditures lavishly spent by all sorts of groups to elect favored candidates. Tony Quinn Fox & Hounds -- 6/20/12

CalBuzz: Op-ed: The Obama-Romney Duel on Immigration -- When Barack Obama and Mitt Romney address the largest gathering of Latino political leaders in the country over the next two days, here’s what they won’t say: “I’m sorry.” Dan Schnur CalBuzz -- 6/20/12

 

   California Policy and Politics This Morning

Approved state budget still not a done deal -- Majority Democrats may be able to crow over producing an on-time state budget, but that’s like claiming a trophy at half-time. Michael Gardner UT San Diego -- 6/20/12

State budget is still pending -- Democratic lawmakers say they balanced California's budget and passed it on time for the second year in a row - an achievement they say will begin to restore public confidence in the state Legislature. But is the budget really done? No. Judy Lin Associated Press -- 6/20/12

Vice President Joe Biden raises money at Sutter Club, calls for improved Obama ground game -- Vice President Joe Biden, campaigning in Sacramento on Tuesday, said President Barack Obama must be better organized in swing states than he was in 2008 if he is to win re-election in the fall. David Siders in the Sacramento Bee -- 6/20/12

Jerry Brown’s State Budget Dream -- In a rare, and candid, sit-down interview the governor outlines his pragmatic but uphill battle to strengthen the fragile Golden State. Marc Cooper Pacific Standard -- 6/20/12

Dan Lungren defends GOP voter drive -- The Sacramento County Republican Party's voter registration drive was credited with helping Republicans gain a slight advantage this spring in what will be a hotly contested race for the 7th Congressional District come fall. Torey Van Oot in the Sacramento Bee -- 6/20/12

Same-day voter registration bill moves forward in Legislature -- Election seasons come and go, and with them public attention to the political process waxes and wanes. Timm Herdt in the Ventura Star -- 6/20/12

Walters: California's Made-in-USA bill involves small parts, but it's no small matter -- Superficially, Assembly Bill 858 is one of the legislative session's more mundane measures, one seemingly so innocuous that it's being carried by a freshman Republican assemblyman, Brian Jones of Santee, and didn't receive a single dissenting vote in the Assembly last year. Dan Walters in the Sacramento Bee -- 6/20/12

Herdt: It was past time for on-time budgets -- There is a chart on the California Department of Finance website, bookmarked on my computer, that for the last several years has been referenced regularly this time of year. Timm Herdt in the Ventura Star -- 6/20/12

Feds want inventory of free military equipment given to police -- Local police will temporarily be barred from receiving free surplus Defense Department weapons until state governments can prove they've adequately kept track of an array of military equipment – including armored vehicles, computers, tactical gear and more – handed over through a special program. G.W. Schulz California Watch -- 6/20/12

Police, lobbyists defeat attempt to regulate license-plate scanners -- Under pressure from law enforcement lobbyists and private industry, a California lawmaker has abandoned his effort to restrict how personal information on the whereabouts of drivers generated from high-tech license-plate scanners can be collected and stored in a database. G.W. Schulz California Watch -- 6/20/12

Prop. 29: California tobacco tax measure trails by razor-thin margin -- Two weeks after the California primary, a closely-watched effort to impose a new tax on tobacco in the nation's most populous state remains too close to call. HANNAH DREIER Associated Press -- 6/20/12

Morain: Citizens United could take us back to when copper was king -- Then as now, oligarchs were making their desires known. Dan Morain in the Sacramento Bee -- 6/20/12

Challenge to pension reform moves forward -- Labor unions have scored two separate legal victories in the past week in their push to invalidate San Diego’s pension reform initiative, which voters overwhelmingly approved earlier this month. Craig Gustafson UT San Diego -- 6/20/12

   Economy

Beacon forecast sees slowly improving California economy -- California's recession-battered economy is improving but at a "slower than desired pace," says a new overview by Beacon Economics, a private firm that advises both private and public clients, including the State Controller's Office. Dan Walters SacBee Capitol Alert -- 6/20/12

Study doubts new recession but fears jobs will be sparse -- California and the rest of the country may not need to fear another recession, but employment growth will remain painfully slow, according to a new forecast from Beacon Economics. Andrew Edwards in the Inland Daily Bulletin -- 6/20/12

UCLA forecast: Economy to lag 3 more years -- High unemployment, slow growth impede progress -- California's long slow slog out of the Great Recession will continue for at least three more years amid tepid job growth and persistent high unemployment, according to a forecast released today. Gregory J. Wilcox in the Los Angeles Daily News -- 6/20/12

   Education

Suspended charter teacher cites student test scores in his defense -- A teacher at the center of a dispute at a well-known charter school has launched a novel defense to save his job and that of a fired colleague: They're too good to be dismissed based on their students' standardized test scores. Howard Blume in the Los Angeles Times$ -- 6/20/12

San Diego teachers reach deal with district to save jobs -- San Diego teachers on Tuesday struck a tentative deal with the city school district to forgo negotiated pay raises in exchange for saving at least 1,481 jobs and keeping class sizes manageable come September. Maureen Magee UT San Diego -- 6/20/12

UCs face huge pension costs -- The cost of pensions and retiree health benefits are soaring at the University of California, increasing pressure to raise tuition and cut academic programs at one of the nation's leading public college systems. Terence Chea Associated Press -- 6/20/12

Budget cuts diminish evaluations of teacher prep programs -- Site accreditation visits to 40 of the state’s teacher preparation programs will be put on hold for 2012-13 as the staff at the Commission on Teacher Credentialing takes a closer look at how institutional evaluations are done and what activities are actually needed. Tom Chorneau SI&A Cabinet Report -- 6/20/12

National school groups lobbying U.S. Senate on budget plan -- National school organizations are urging leaders in the U.S. Senate to move ahead with a budget plan that increases education funding by bolstering several key programs aimed at disadvantaged students. Kimberly Beltran SI&A Cabinet Report -- 6/20/12

Goldrick: Smart policy decisions can only result from involving teachers -- As someone who engages in education policy advocacy and development for a living, it’s good to know opportunities abound for me and fellow policymakers to hear the voices of America’s teachers and to apply their perspective in crafting policy solutions to educational challenges. Liam Goldrick TopEd -- 6/20/12

Baron: Assembly panel pursues college success -- Retiring Community College Chancellor Jack Scott watched his signature initiative move closer to becoming law. The Assembly Higher Education Committee yesterday unanimously passed SB 1456, the Student Success Act of 2012. Kathryn Baron TopEd -- 6/20/12

   Health Care

Millions will remain uninsured after health care reform -- Up to 10 percent of California’s 40 million residents will not have health insurance after national health care reform begins in 2014, according to new numbers released from University of California, Berkeley last week. Geneveive Bookwalter HealthyCal.org -- 6/20/12

   Environment

State health officials say Kettleman birth-defect rate has dropped -- An alarming increase of birth defects in the farmworker community of Kettleman City appears to be reversing, state health leaders said Tuesday. But the latest birth defects report is not complete, and it is raising criticism from some residents. Barbara Anderson and Mark Grossi in the Fresno Bee -- 6/20/12

   Immigration

Two Sacramento teens spared deportation by new ruling -- Two Sacramento teens facing deportation to Colombia are among the first undocumented youths in the nation to benefit from the Obama administration's new policy not to deport 800,000 federal DREAM Act kids in good standing. Stephen Magagnini in the Sacramento Bee -- 6/20/12

State Bar says let illegal immigrant practice law -- An illegal immigrant who passes the bar exam and demonstrates good moral character should be eligible to practice law, the State Bar has declared in a court filing. Bob Egelko in the San Francisco Chronicle -- 6/20/12

   Also..

Solitary confinement 'is driving men insane,' exonerated convict testifies -- Solitary confinement is 'inhumane,' former death row inmate Anthony Graves tells a Senate panel considering reforms. The hearing follows a lawsuit over the practice in California. Jamie Goldberg in the Los Angeles Times$ -- 6/20/12

Finances of prominent California pot club revealed in documents -- At the peak of California’s pot boom in 2009, one of the state’s largest medical marijuana dispensaries recorded more than $15 million in sales to thousands of customers for popular strains like Grand Daddy Purple, OG Kush and Blue Dream. What it didn’t record was much profit. Michael Montgomery and David Downs California Watch -- 6/20/12

Turning Pot into Medicine -- Marijuana strains that provide medicinal relief without getting you stoned are rising in popularity, thanks to the groundbreaking work of cannabis testing labs. David Downs East Bay Express -- 6/20/12

Oakland council votes to pay police officer's fine -- The Oakland City Council voted Tuesday to pay $40,000 in punitive damages that a judge had ordered a former Oakland police officer to pay for making two men pull down their pants in public. Matthew Artz in the Contra Costa Times -- 6/20/12

Lopez: Dodgers should step up to the plate and help nearby Little League -- Just up the hill from Dodger Stadium, a Little League field built on a former landfill is sinking. The Dodgers could do something about it. Steve Lopez in the Los Angeles Times$ -- 6/20/12

Armistead Maupin leaving San Francisco, setting for his 'Tales' -- On Friday, the day after Armistead Maupin gets a big civic thank you for all he's done for San Francisco, he's leaving. It's step one of his move to Santa Fe, N.M. Leah Garchik in the San Francisco Chronicle -- 6/20/12

Venice Beach Bodybuilders Fear Google Is Kicking Sand at Them -- This city’s boardwalk community of Venice has long celebrated its seediness, accepting — embracing, really — the kind of sensory assaults that would faze more conventional places: beachfront bodybuilders, ragamuffin street vendors, tattoo artists, Hare Krishna chanters, skateboarders, drug dealers, gangs, homeless encampments, rowdy tourist s, film crews and, more recently, a colony of medical marijuana dispensaries. ADAM NAGOURNEY and IAN LOVETT in the New York Times$ -- 6/20/12

   POTUS 44

Obama Leads In Poll As Voters View Romney As Out Of Touch -- Obama leads Romney 53 percent to 40 percent among likely voters, even as the public gives him low marks on handling the economy and the deficit, and six in 10 say the nation is headed down the wrong track, according to the poll conducted June 15- 18. Julie Hirschfeld Davis Bloomberg -- 6/20/12

Obama campaign asks Crossroads GPS to disclose donors -- President Obama’s reelection campaign is demanding that Crossroads GPS, the independent Republican group spending millions to defeat the incumbent Democrat, disclose who its donors are. Amy Gardner in the Washington Post -- 6/20/12

   Beltway

Middle class would face higher taxes under Republican plan, analysis finds -- The tax reform plan that House Republicans have advanced would sharply cut taxes for the wealthiest Americans and could leave middle-class households facing much larger tax bills, according to a new analysis set to be released Wednesday. Lori Montgomery in the Washington Post -- 6/20/12

Romney faces pressure from both GOP, Dems on immigration policy -- Bipartisan pressure is building on Mitt Romney to clearly spell out where the Republican Party stands on immigration. With less than five months to go before Election Day, Democratic and GOP leaders on Capitol Hill are calling on Romney to take a leading role. Alexander Bolton and Pete Kasperowicz The Hill -- 6/20/12

Reid and Boehner say they want transportation bill finished by June 30 -- With the clock about to run out on federal highway funding, House Speaker John A. Boehner and Senate Majority Leader Harry M. Reid sent a message Tuesday to their members: Find a way to compromise. Ashley Halsey III in the Washington Post -- 6/20/12