* Updates

Cities threaten lawsuits over potential garnish of local taxes -- California cities are considering legal action over a new budget provision that allows the state to garnish local tax revenue if it believes governments are keeping too much money formerly dedicated to redevelopment. Kevin Yamamura in the Sacramento Bee -- 6/27/12

Fate of health insurance regulation measure up in the air -- There's still one potential November ballot measure pending - one that would subject health insurance rates to state regulation - and with only hours before the qualification deadline, its fate is up in the air. Dan Walters in the Sacramento Bee -- 6/27/12

Legislature sends bills finalizing budget to Gov. Jerry Brown -- The California Legislature passed some of the last remaining parts of the state budget on Wednesday, sending them to Gov. Jerry Brown for his signature. Chris Megerian in the Los Angeles Times$ -- 6/27/12

Finish line in sight for California budget -- It's going to be a marathon day in the Capitol on Wednesday as lawmakers plan to vote on the last pieces of the state budget. Gov. Jerry Brown is expected to sign the spending plan into law by the end of the day. Chris Megerian in the Los Angeles Times$ -- 6/27/12

California State Athletic Commission censures its executive officer -- The California State Athletic Commission has voted to censure its executive officer, George Dodd, as officials warn that the agency is insolvent because of excessive spending. Patrick McGreevy in the Los Angeles Times$ -- 6/27/12

California's high school graduation rate edges upward -- More than three-quarters of California's public school students who entered the 9th grade in 2007 were awarded diplomas four years later, the state Department of Education reported today. Dan Walters SacBee Capitol Alert -- 6/27/12

Stockton bankruptcy: 'All that's left is sadness' for city -- With the city of Stockton moving to become the nation's largest city to seek protection under the U.S. Bankruptcy Code, Tuesday night's City Council meeting was quiet, with an evident sadness on faces in the packed chambers. Diana Marcum in the Los Angeles Times$ -- 6/27/12

Fox: Cutting Edge California -- As the High Speed Rail legislative vote nears, we hear arguments for the rail as not only promoting jobs and necessary transportation for a growing population, but a test for California as a forward thinking, cutting edge state. Joel Fox Fox & Hounds -- 6/27/12

 

   California Policy and Politics This Morning

Stockton council votes to go into bankruptcy protection -- Years after betting on a sustained housing boom to bankroll a waterfront redevelopment and dole out salary and benefit perks to city employees and retirees, Stockton cashed in its chips Tuesday in a plan that will lead it into bankruptcy. Peter Hecht in the Sacramento Bee Steven Church and Alison Vekshin Bloomberg Diana Marcum in the Los Angeles Times$ -- 6/27/12

The Three Words That Made Pensions Untouchable -- As it stands in California law, on the day municipal workers start their jobs, their pension benefits can only go up, not down. LIAM DILLON Voiceofsandiego.org -- 6/27/12

Measure that includes budget changes makes California ballot -- California voters heading to the polls in November will consider a package of proposed fixes for state governance that includes changes to the budget process. Torey Van Oot in the Sacramento Bee -- 6/27/12

Gov. Jerry Brown nearing goal of $400 million in savings from pay cuts -- Gov. Jerry Brown added another notch on his budget-tightening belt after California's largest public employee union agreed to a 4.6 percent pay cut over the next year. Steven Harmon in the San Jose Mercury -- 6/27/12

Shenanigans abound as final budget vote nears -- ore legislative shenanigans appear to be in the works as state lawmakers prepare to vote on the final pieces of the state budget Wednesday. BRIAN JOSEPH in the Orange County Register -- 6/27/12

Walters: Is California's budget now relatively lower than during the Reagan era? -- Gov. Jerry Brown knows that it's difficult to persuade California voters to raise taxes, even those they may not pay themselves, as rejection of a new cigarette tax this month underscores. Dan Walters in the Sacramento Bee -- 6/27/12

High anxiety: California's poorest and sickest await the budget vote -- But in government shorthand, “dual eligibles” are those persons who qualify for Medicare, the federal health insurance for seniors and the disabled, and Medi-Cal, the state’s health care program for the poor. Greg Lucas Capitol Weekly -- 6/27/12

Wildfire proposal dropped from budget -- A proposal to limit legal liability for people who start wildfires has been dropped from the budget after generating controversy from Sacramento to Washington, D.C. Chris Megerian in the Los Angeles Times$ -- 6/27/12

State won't close mansion after all -- Sacramento's lavish Victorian-style Governor's Mansion will remain open as a state park, thanks to thousands of environmentally minded grocery shoppers. Matt Weiser in the Sacramento Bee -- 6/27/12

California insurers lost billions on workers' comp last year -- New ammunition emerged Tuesday for a behind-the-scenes political battle shaping up over California's multibillion-dollar system of compensating workers for job-related injuries and illnesses. Dan Walters in the Sacramento Bee -- 6/27/12

Democrats prepare to move water bond question off November ballot -- Democrats have gone out of their way to make passage of Gov. Jerry Brown’s tax initiative easier, and they are about to give the governor another boost. Anthony York in the Los Angeles Times$ -- 6/27/12

Herdt: Making ballot initiatives less crazy -- Judging from the "statement of purpose" they wrote for their initiative, the drafters of Proposition 29 felt fairly strongly that the money generated by their proposed cigarette tax would be spent to conduct cancer research only in California. Timm Herdt in the Ventura Star -- 6/27/12

Morain: Turn cap and trade rate bomb into AB 32 dividends -- Mike Florio, a lifelong consumer advocate turned California Public Utilities commissioner, hasn't often found himself aligned with the California Chamber of Commerce, the Howard Jarvis Taxpayers Association and major power companies. Dan Morain in the Sacramento Bee -- 6/27/12

L.A. County budget approved with new spending, no deep cuts -- The Board of Supervisors on Tuesday unanimously approved a $24.53-billion budget for the fiscal year beginning July 1, its first in four years without significant cuts in public services. Christina Villacorte in the Los Angeles Daily News -- 6/27/12

GOP's Jay Stern edges his way into 46th Assembly runoff -- With less than a dozen ballots left to count in the 46th District Assembly race, Republican chemistry teacher Jay Stern appears to have snagged just enough votes to put him in the runoff against Democrat Adrin Nazarian. Dakota Smith in the Los Angeles Daily News -- 6/27/12

State Sen. Alex Padilla to head national Latino group -- State Sen. Alex Padilla (D-Pacoima) is stepping up onto the national stage with his election to head a prominent and powerful Latino advocacy group. Patrick McGreevy in the Los Angeles Times$ -- 6/27/12

   High-Speed Rail

Some senators want dramatic shift in bullet train plan -- Three months ago, Gov. Jerry Brown hit the reset button on the California bullet train, slashing $30 billion from its $98 billion budget and promising to reorder the controversial project’s priorities. Now, some Democrats in the state Senate want to hit the reset button again. Lance Williams California Watch -- 6/27/12

   Economy

Mortgage delinquencies drop in Sacramento -- Foreclosure and mortgage delinquency rates in the four-county Sacramento region decreased slightly for the month of April over the same period last year, another positive sign of a slowly improving housing market, according to data released today by real estate tracking firm CoreLogic. Hudson Sangree in the Sacramento Bee -- 6/27/12

   Education

California budget cuts Cal Grants at most private schools -- California students will no longer be able to use state scholarships to pay tuition at most for-profit colleges under the final budget plan lawmakers are expected to send Gov. Jerry Brown today. Laurel Rosenhall in the Sacramento Bee -- 6/27/12

UC, Cal State tuition freeze plan seen as a gamble -- California university leaders on Tuesday were warily watching a last-minute tuition freeze plan that would cost the schools -- and students -- dearly if voters reject November's state tax initiative. Matt Krupnick in the San Jose Mercury -- 6/27/12

Schools reluctant to call kids fluent, lose funds -- Nearly 3,000 San Francisco students who started school in the city as English learners were reclassified as fluent in the language last year while untold thousands of other students across the state with similar English skills remained stuck in limited-English classes to keep federal and state funding flowing into their district. Jill Tucker in the San Francisco Chronicle -- 6/27/12

LAUSD to spend up to $400K to review files of 8,300 employees -- Los Angeles Unified plans to spend up to $400,000 to review at least 8,300 employee files unearthed in a search for misconduct that may have gone unreported over the past 40 years, officials said Tuesday. Barbara Jones in the Los Angeles Daily News -- 6/27/12

Baron: No Exit -- Years of interventions designed to help students pass the California High School Exit Exam (CAHSEE) have had little impact. Kathryn Baron TopEd -- 6/27/12

Multiple bills to reform school discipline laws get hearing in Sacramento -- A major legislative push is underway to reform California’s laws governing school discipline. A half dozen bills intended to do just that will be heard today in the state Senate and Assembly education committees. Susan Frey EdSource -- 6/27/12

SAB awarding $637.6 million to 198 shovel-ready school projects -- Ninety-six California school districts are expected to receive today a total $637.6 million in state construction matching funds – money that officials hope will help boost the struggling economy through job creation and tax revenues. Kimberly Beltran SI&A Cabinet Report -- 6/27/12

Drop in immigration clouds future of school for Spanish speakers -- English and Spanish alternate seamlessly in the classrooms at the Mission Education Center in San Francisco. Decorative signs identify objects that in other schools would seem too basic to name: “clock” and “door.” GRACE RUBENSTEIN Bay Citizen -- 6/27/12

Schools could slash year if initiative fails -- A package of budget bills going before the Legislature would allow school districts to cut the school year to 160 days if voters reject higher tax levies this fall, a significant drop from the 175-day calendar now authorized. JIM MILLER in the Riverside Press -- 6/27/12

   Health Care

Health care: Firms brace for Supreme Court's ruling -- As president of See Jane Run, a small chain of running stores for women, Lori Shannon has seen health insurance costs soar the past several years. Carolyn Said in the San Francisco Chronicle -- 6/27/12

California budget deal includes exception for Kaiser Permanente -- Gov. Jerry Brown and Democratic leaders are crafting an exception for Kaiser Permanente as they prepare to move 880,000 Healthy Families patients to lower-cost Medi-Cal as part of their budget agreement. Kevin Yamamura in the Sacramento Bee -- 6/27/12

Sometimes When School Is Out, So Is The Food -- To understand some of the powerful hunger issues in our state, go no further than the Silicon Valley YMCA. Rachel Dornhelm KQED State of Health -- 6/27/12

   Environment

Sales at wealthy enclave near Lake Tahoe help fund open-space drive -- A mountain playground for the ultra-wealthy near Lake Tahoe is thriving in a moribund real estate market, spinning off millions of dollars in fees to help preserve open space in the scenic Martis Valley. Hudson Sangree in the Sacramento Bee -- 6/27/12

Fracking moratorium advances in California Legislature -- A key Senate panel on Tuesday supported legislation that would ban the use of hydraulic fracturing in California until regulators write rules governing the controversial procedure. Michael J. Mishak in the Los Angeles Times$ -- 6/27/12

Climate change would lead to increased fire activity, study shows -- Climate change is likely to alter fire patterns around the world, including a potential increase in the number of fires for much of California in the next 30 years, according to a new study led by UC Berkeley researchers. COULTER JONES Bay Citizen -- 6/27/12

   Occupy

Release names of UC Davis officers in pepper-spraying, judge orders -- A judge on Tuesday ordered the release of the names of police officers involved in last November's pepper-spray incident on the University of California, Davis, campus. Sam Stanton in the Sacramento Bee -- 6/27/12

   Immigration

Immigrants responsible for large share of U.S. patents, study finds -- Foreign-born inventors are responsible for more than three-quarters of the patents that emerged from top American research universities last year, according to a new report. Tiffany Hsu in the Los Angeles Times$ -- 6/27/12

Ruling on Arizona's immigration law leaves many questions unanswered -- After the Supreme Court upholds the 'show me your papers' provision in Arizona's SB 1070, legal and illegal residents of Latino heritage fear they'll be singled out. Paloma Esquivel in the Los Angeles Times$ -- 6/27/12

   Also..

Lopez: Man's 10 years of newspaper ads pay respects to late beloved wife -- Retired criminal defense attorney Joe Ingber remembers his late wife, Eileen, on her birthdays and on the anniversary of the day she died of cancer in 2002. Steve Lopez in the Los Angeles Times$ -- 6/27/12

   POTUS 44

Campaign 2012: Obama fundraising plea says he will be outspent -- But the latest solicitation from President Obama is arresting for its subject line — “I will be outspent” — and what it says about the titanic financial forces unleashed in good part by his 2008 campaign. Mark Z. Barabak in the Los Angeles Times$ -- 6/27/12

   Beltway

GOP in no rush to legislate if ACA goes down -- If the Supreme Court wholly or partially strikes down the law on Thursday, House Republicans won’t rush to pass a bill that allows young adults under 26 to stay on their parents’ insurance. They won’t pass legislation forcing insurance companies to cover people with pre-existing conditions. And the gap in drug coverage that requires seniors to pay more out of pocket — the so-called donut hole — won’t immediately be closed. JAKE SHERMAN Politico -- 6/27/12