Senators reach deal to cut stimulus bill to $780B -- With job losses soaring nationwide, Senate Democrats reached agreement with a small group of Republicans Friday night on an economic stimulus measure at the heart of President Barack Obama's plan for combatting the worst recession in decades. ANDREW TAYLOR AP -- 2/6/09

Sen. Kennedy expected to vote on stimulus bill -- Ailing Sen. Ted Kennedy, the Democratic senator who has been absent from the Senate since collapsing on Inauguration Day, is expected to be present for the vote, sources said. CNN -- 2/6/09

San Bernardino County Assessor Postmus resigns -- Embattled San Bernardino County Assessor Bill Postmus, once among the county's most powerful politicians, resigned today under pressure of corruption allegations, an arrest on suspicion of drug violations and two investigations into his department. ZEKE MINAYA in the Riverside Press -- 2/6/09

Evans: State budget crisis "is going to get worse" -- Friday’s closure of state offices is just a taste of the cuts in store for California government, Assemblywoman Noreen Evans told business leaders Friday. STEVE HART in the Santa Rosa Press -- 2/6/09

Stockton lays off 29 police officers, reorganizes city administration -- The city today issued layoff notices to 29 police officers, laid off three department heads and demoted two deputy city managers, the first significant spending-reduction measures ordered since November in Stockton’s bid to resolve its $30 million budget crisis. The item is in the Stockton Record -- 2/6/09

Support growing for middle ground in state budget battle -- Anthony Adams, a Republican assemblyman from San Bernardino County, may have shown what it will take to break the state's $42 billion budget deficit deadlock. John Wildermuth Chronicle Politics Weblog -- 2/6/09

Kaiser warns nearly 30,000 employees of data breach -- Kaiser Permanente is notifying nearly 30,000 Northern California employees that a security breach may have led to the release of their personal information. Some employees have reported identity thefts resulting from the breach, Kaiser reported. Sandy Kleffman in the Contra Costa Times Chris Bowman in the Sacramento Bee -- 2/6/09

Jobless benefit fund takes big beating -- California not only has the nation's third highest unemployment rate but its Unemployment Insurance Fund has taken a bigger beating than any other state, a new report from the National Conference of State Legislatures indicates. Dan Walters SacBee Capitol Alert -- 2/6/09

UC employees to contribute to pension after 20-year hiatus -- University of California employees next year will start contributing at least 2 percent of their pay to the UC pension fund, marking an end to a 20-year contribution hiatus. Matt Krupnick in the Contra Costa Times -- 2/6/09

Few major problems as state workers take first 'Furlough Friday' -- As California began historic furloughs that shut down the workplaces of more than 200,000 government employees, state officials and labor unions said they had heard about few major glitches even as drivers showed up at closed Department of Motor Vehicles offices. Edwin Garcia in the San Jose Mercury -- 2/6/09

TGI Furlough Friday -- Sacramento is at the center of the mandatory furloughs of state workers that began today in California. State employees abound here, and 21 of the 28 state office buildings closed across California are located in River City. Wyatt Buchanan Chronicle Politics Weblog -- 2/6/09

Turning the Art of Compromise into a Criminal Offense -- Core elements of California’s budget problem were exposed in the political ploy by labor and environmental groups charging that Republican legislators are offering to trade votes in the budget talks. Joel Fox Fox & Hounds weblog -- 2/6/09

Hundreds turn out to protest A's stadium plans in Fremont -- What was scheduled to be a quiet meeting Thursday between Oakland A's officials and 25 South Fremont residents on the team's stadium plans turned into a spirited question and answer session. Matthew Artz in the San Jose Mercury -- 2/6/09

Feinstein concerned about too many tax cuts in stimulus bill -- Sen. Dianne Feinstein said Friday she won’t support the stimulus bill if it is altered so much that it becomes mostly tax cuts. Lawmakers have been meeting and debating major changes to garner some Republican support for the $900 billion package. Deborah Barfield Berry in the Desert Sun -- 2/6/09

California prison czar scales back plan for medical care -- The prison medical czar today offered downsized versions of his plan to build long-term care beds for physically and mentally ill inmates, the least expensive of which would cost the deficit-ridden state $2.5 billion. Andy Furillo in the Sacramento Bee -- 2/6/09

Trepidation reigns on this first Furlough Friday -- Highways are pretty empty. Parking lots are deserted. Capitol Mall is barren. The first furlough Friday has arrived. Niesha Lofing in the Sacramento Bee -- 2/6/09

Podcast: Furloughs Fer Real -- This week's Capital Notes Podcast examines the still going budget deficit negotiations and the furlough. Plus, Capitol Weekly editor Anthony York walks us through the results of the newspaper's first poll on California politics. John Myers Capitol Notes weblog -- 2/6/09

People surprised, irritated by sudden DMV closure -- A steady stream of people planning to conduct business at area DMV offices were surprised –- and sometimes upset -- Friday to find out the offices were closed. SERENA MARIA DANIELS in the Orange County Register -- 2/6/09

DMV furlough closing catches many in South Bay by surprise -- As if a trip to the DMV wasn't bad enough, imagine the frustration for those South Bay residents who showed up to their local branches on Friday morning only to find the doors closed for business. Mark Gomez in the San Jose Mercury -- 2/6/09

Jobless rate 7.6 pct; 598K job cuts most since '74 -- Recession-battered employers eliminated 598,000 jobs in January, the most since the end of 1974, and catapulted the unemployment rate to 7.6 percent. The grim figures were further proof that the nation's job climate is deteriorating at an alarming clip with no end in sight. JEANNINE AVERSA AP -- 2/6/09

Ex-governors urge Schwarzenegger to save CCC -- Brown, George Deukmejian, Pete Wilson and Gray Davis -- have co-signed a letter to Gov. Arnold Schwarzenegger urging him to withdraw his proposal to eliminate the California Conservation Corps, calling it "one state agency that taxpayers should be proud to support." Shane Goldmacher SacBee Capitol Alert -- 2/6/09

Bush overpaid banks in bailout, watchdog says -- The Bush administration overpaid tens of billions of dollars for stocks and other assets in its massive bailout last year of Wall Street banks and financial institutions, a new study by a government watchdog says. AP -- 2/6/09

Are the rich fleeing California to avoid high taxes? -- The rich may not like California’s punish-’em-if-they-make-money tax rates, but they don’t appear to be moving to less-taxing states, according to an analysis by the California Budget Project. Mary Ann Milbourn in the Orange County Register -- 2/6/09

 •  Bicycle activists win 1, lose 1 in space battle -- Bay Area bicycle advocates stepped up their campaign Thursday to make it easier to commute on two wheels, winning one battle to get more space for bikes on Caltrain but losing their latest skirmish with the state to allow cycling across the Richmond-San Rafael Bridge. Rachel Gordon, Michael Cabanatuan in the San Francisco Chronicle -- 2/6/09

 Scores of California state offices to be closed today -- More than 200,000 California employees will be forced to take an unpaid day off in response to the state's worsening fiscal crisis. The DMV will be among the departments not open. Jean Merl in the Los Angeles Times E.J. Schultz in the Fresno Bee Edwin Garcia in the San Jose Mercury DEREK J. MOORE in the Santa Rosa Press JULIET WILLIAMS AP Wyatt Buchanan, Steve Rubenstein in the San Francisco Chronicle -- 2/6/09

Status of some state offices once furloughs begin -- The AP list is in the Inland Daily Bulletin -- 2/6/09

Workers under elected state officials won't abide by furloughs today -- Despite Gov. Arnold Schwarzenegger's order for state workers to take today off without pay, one group will be showing up for work, just like always. Jon Ortiz in the Sacramento Bee -- 2/6/09

DMV furlough hits employees hard -- For nine years Danny Barceleau made sure DMV office in Pomona looks spic-and-span when customers walk in. Today, Barceleau's mop is hanging in the utility closet as he and the rest of the state employees take a mandatory day off. Mediha Fejzagic DiMartino in the Inland Daily Bulletin -- 2/6/09

Yolo County workers showed the way in furloughs -- Beginning last spring, when county officials realized they had to cut costs, Yolo County employees either volunteered to take time off or eventually faced mandatory furloughs. Many say their experience has been surprisingly positive, despite the pay cut. Hudson Sangree in the Sacramento Bee -- 2/6/09

Union leaders change their tune on days off -- The furlough ordered by the governor has Sacramento in a tizzy, with employee union leaders warning that closing state offices two Fridays a month not only will cost workers pay but will harm Californians seeking to do business with the state. John Wildermuth in the San Francisco Chronicle -- 2/6/09

State budget cuts would hit GOP areas hardest -- Solutions to the state's $42 billion budget gap remain elusive as Republican lawmakers rebuff proposals for new taxes, arguing that California spends too much. But parts of the state that the GOP legislators represent would be hurt most by deep cuts, according to a Chronicle analysis of state data. Matthew Yi in the San Francisco Chronicle -- 2/6/09

Walters: Budget analyst says state can't evade reality -- By purest happenstance, Mac Taylor became the Legislature's budget analyst last year just as the state was plummeting into the fiscal abyss of multibillion-dollar deficits, a credit rating that's lowest in the nation, payment deferrals because of cash shortages – and no political plans, or perhaps even will, to arrest the plunge. Dan Walters in the Sacramento Bee -- 2/6/09

Budget crisis hasn’t cut into Speaker’s political schedule -- And tomorrow, on the first day of mandatory furloughs for state workers, Bass has tried to organize a series of press conferences across the state with labor leaders. Apparently, Bass asked Caltrans officials to provide access to three facilities in Sacramento, Riverside and Los Angeles counties that are scheduled to be closed. BRIAN JOSEPH in the Orange County Register -- 2/6/09

Experts spell out California counties' budget predicament -- Counties threatened revolt against the state this week after state Controller John Chiang said he would delay payments to counties for mandated programs. Robert Lewis and Loretta Kalb in the Sacramento Bee -- 2/6/09

Jerry Brown urged to probe Republican vote-trading allegations -- Labor and environmental groups have asked California Attorney General Jerry Brown to investigate whether Republican state lawmakers are engaging in illegal vote trading during budget talks. Josh Richman in the Contra Costa Times -- 2/6/09

25 random things about Jerry Brown -- Onetime cheerleader, very spiritual, likes eating arugula and flax, enjoys canoeing and hiking but not shopping, co-owns a ranch… sounds like a Craigslist personal ad from Berkeley, right? Josh Richman Political Blotter weblog -- 2/6/09

Rulings on gay couples' benefits question Defense of Marriage Act -- Brad Levenson and Tony Sears spent Thursday fielding congratulatory calls from gay rights supporters around the nation for their success in getting a federal judge to call into question the legality of the 1996 Defense of Marriage Act. Carol J. Williams in the Los Angeles Times -- 2/6/09

Labor leaders back Postmus recall effort -- Inland labor leaders are adding their support to the recall of embattled San Bernardino County Assessor Bill Postmus, who is under investigation by the district attorney's public integrity unit. IMRAN GHORI and ZEKE MINAYA in the Riverside Press -- 2/6/09

Schwarzenegger names new Energy Commission chair -- Gov. Arnold Schwarzenegger named Karen Douglas the new chair of the California Energy Commission on Thursday. Shane Goldmacher SacBee Capitol Alert -- 2/6/09

Panetta styles himself a CIA company man -- Leon Panetta, President Obama's choice for CIA chief, pledged to lawmakers that he would end some of the most controversial intelligence-gathering practices of the last eight years, including waterboarding and renditions of suspects overseas. Zachary Coile in the San Francisco Chronicle Mary Anne Ostrom in the San Jose Mercury SIOBHAN GORMAN in the Wall Street Journal -- 2/6/09

Mortgage rates rise despite the Fed's efforts to push them down -- Even as the Fed has continued to buy billions of dollars' worth of mortgage-backed bonds each week, home loan rates are at their highest level since mid-December. Tom Petruno in the Los Angeles Times -- 2/6/09

Long Beach sues Lehman for fraud -- Seeking to recover nearly $20 million in commercial paper lost when Lehman Brothers went bankrupt, the City of Long Beach on Thursday filed a lawsuit alleging fraud by principals of the fallen financial giant. John Canalis in the Long Beach Press -- 2/6/09

Gottschalks sees January sales increase -- Loyal customers worried about the future of Gottschalks Inc. helped the beleaguered retailer post an unusual sales increase despite a gloomy economy. Tim Sheehan in the Fresno Bee -- 2/6/09

Informant in one of nation's biggest mortgage scams flees -- After trying to publicize his role in what authorities describe as one of the nation's biggest mortgage and investment swindles, a government informant and self-proclaimed insider has fled the Sacramento area. Denny Walsh in the Sacramento Bee -- 2/6/09

Judge again refuses to block SAG talks with studios -- He rules that a recent board vote ousting the union's chief negotiator and disbanding its negotiating committee is lawful. Richard Verrier in the Los Angeles Times -- 2/6/09

Can BofA save itself? -- Toxic assets and the housing bust have sickened the giant bank, leading to talk of a government takeover and putting CEO Kenneth Lewis' tenure in jeopardy. E. Scott Reckard and Tiffany Hsu in the Los Angeles Times -- 2/6/09

Nations Rush to Establish New Barriers to Trade -- Countries grappling with global recession have enacted a wave of barriers to world commerce since early last month, scrambling to safeguard their key industries -- often by damaging those of their neighbors. JOHN W. MILLER in the Wall Street Journal -- 2/6/09

At retreat, Obama goes on the offensive -- A fired-up Barack Obama ditched his TelePrompter to rally House Democrats and rip Republican opponents of his recovery package Thursday night – at one point openly mocking the GOP for failing to follow through on promises of bipartisanship. GLENN THRUSH & PATRICK O'CONNOR Politico LIZ SIDOTI AP -- 2/6/09

Budget gap endangers valued school programs -- Parents in San Ramon fear their program for gifted students will vanish. Oakland residents want to save adult education. And teachers across the state are demanding that lawmakers preserve small class sizes they say kids need. Nanette Asimov in the San Francisco Chronicle -- 2/6/09

Diablo Valley College gets stern warning from accreditors -- In a letter received by DVC President Judy Walters late Wednesday, the Accrediting Commission for Community and Junior Colleges said it had found serious deficiencies during an October evaluation and was issuing a "show-cause" sanction. DVC must fix the problems this year or face the most serious consequence, the letter said. Matt Krupnick in the Contra Costa Times -- 2/6/09

California farmers struggle with impending drought -- Farmer Lax Iyers is standing on the side of a country road that splits his almond orchard into two different worlds — one abloom, the other in danger of choking in a cloud of dust. Ken McLaughlin in the San Jose Mercury -- 2/6/09

Delta water managers choosing salmon over smelt -- California's state and federal water managers on Thursday took drastic emergency steps to begin reducing freshwater flows in the Delta to save scarce supplies during the worsening drought. In effect, they are making an unprecedented choice to protect one declining fish species over another. Matt Weiser in the Sacramento Bee SAMANTHA YOUNG AP -- 2/6/09

Drought means water quality standards must be eased, managers say -- The drought took an ominous turn Thursday when state and federal water managers said they cannot meet a standard that protects Delta fish habitat without the risk of running out of cold water salmon must have in the months to come. Mike Taugher in the Contra Costa Times -- 2/6/09

Consumer panel's decision on lead testing law is overturned -- Manufacturers and retailers cannot sell children's products containing phthalates, which are chemicals used to soften plastic, after Tuesday, a federal judge rules. Alana Semuels in the Los Angeles Times -- 2/6/09

DWP's renewable energy efforts will boost rates, report says -- A five-year review said the Los Angeles utility's plan to increase such power sources has not been properly analyzed regarding costs to customers. David Zahniser in the Los Angeles Times -- 2/6/09

San Francisco to convert guckiest cooking grease to fuel -- San Francisco will become the first city in the country to convert large batches of "brown grease" - the smelly, mucky mess left over from foods cooked in oil - into biodiesel and other fuels under a program set to start by the end of the year. Erin Allday in the San Francisco Chronicle -- 2/6/09

Fired Border Patrol agent alleges quota pressure in Inland Empire -- Tony Plattel says agents cruised streets, bus stops and even medical clinics for illegal immigrants to meet their arrest quotas. David Kelly in the Los Angeles Times -- 2/6/09

Sacramento activist offers strategy for curbing illegal immigration -- Sacramento activist offers strategy for curbing illegal immigration. Susan Ferriss in the Sacramento Bee -- 2/6/09

Study points to cancer's financial malignancy -- But when the disease recurred last year, she had to quit her job because of the debilitating side effects of her new medications. With her income greatly reduced, she was forced to sell her Vacaville home. Franklin, who pays the monthly premium for her former employer's health coverage along with high co-payments for drugs and care, has stopped adding up the costs. Victoria Colliver in the San Francisco Chronicle -- 2/6/09

A small service makes a big difference on skid row -- A Los Angeles warehouse where the homeless can keep their belongings is adjusting as more families -- and even educated professionals -- seek aid. It's getting more bins and may add a dressing area. Scott Gold in the Los Angeles Times -- 2/6/09

Last known survivor of the 1906 quake dies -- Herbert Heimie Hamrol was the last known survivor of the 1906 San Francisco earthquake and fire, and right up until the minute he died today at the age of 106, he packed every moment as if it were his last. Kevin Fagan in the San Francisco Chronicle -- 2/6/09

  •  Own a bike, ride the Tour of California course in Sacramento on opening day -- How would you like to ride the same course as the best cyclists from around the world on opening day of the Amgen Tour of California? Well, you can - just hours before Lance Armstrong and the international field compete Saturday, Feb. 14 near the Capitol in Sacramento. Bill Lindelof in the Sacramento Bee -- 2/6/09

Huntington Beach couple's hunger highlights the economic low -- This was the night that whatever is going on in the country these days came out of the shadows and sat on a bench, right under a light. Dana Parsons in the Los Angeles Times -- 2/6/09