Obituary: Former state lawmaker Nell Soto, 82 -- Nell Soto, a former assemblywoman, state senator and trailblazer in Latino politics, died today in Pomona. She was 82. Shane Goldmacher SacBee Capitol Alert -- 2/26/09

Federal regulators ignored problems at IndyMac, report finds -- The Treasury Department's inspector general says regulators missed key signals pointing to bad loans and the bank's failure cost the FDIC $10.7 billion. William Heisel in the Los Angeles Times -- 2/26/09

Hollingsworth names new leadership team -- Senate GOP leader Dennis Hollingsworth, in his second week as Republican leader, has announced a trio of senators that will serve as part of his new leadership team: Sen. Mimi Walters, a freshman from Laguna Niguel, will serve as assistant majority Republican leader. Shane Goldmacher SacBee Capitol Alert -- 2/26/09

Obama unveils $3.55-trillion budget plan -- The president's outline of his proposal for 2010 boosts federal spending to a record level. It also raises taxes for the wealthy and sets aside funds for universal healthcare. Maura Reynolds in the Los Angeles Times -- 2/26/09

Schwarzenegger, Steinberg, Cogdill hit the campaign trail -- Gov. Arnold Schwarznegger, Senate President Pro Tem Darrell Steinberg and ex-Senate leader Dave Cogdill will join hands today for the first campaign event before the upcoming budget special election. Shane Goldmacher SacBee Capitol Alert -- 2/26/09

San Fran First Lady's movie trailer: Could 'The Trouble With Love' mean trouble in politics? -- San Francisco Mayor Gavin Newsom is running for the 2010 Democratic nomination for governor -- but his wife, actress Jennifer Siebel Newsom, is on her own campaign this week, to promote her new indie romantic comedy movie, "The Trouble With Love,'' which is in limited release beginning Friday. Carla Marinucci Chronicle Politics Weblog Shane Goldmacher SacBee Capitol Alert -- 2/26/09

Move afoot at federal level that could gut California’s Prop. 103 -- A move toward federal regulation of the insurance industry is being developed by an Orange County Republican and an Illinois Democrat, who hope to establish an Office of National Insurance. Ultimately, the proposed legislation could allow insurers to choose between state or federal regulation, experts say. A similar attempt was blocked earlier. John Howard in Capitol Weekly -- 2/26/09

CalPERS unplugged: the controller’s computer snafu -- The long history of troubled state computer projects is continuing with an attempt to modernize the payroll system for state workers. State Controller John Chiang quietly terminated a $69 million contract last month with BearingPoint, a large Virginia-based firm that declared bankruptcy last week to restructure its debt. Ed Mendel in Capitol Weekly -- 2/26/09

The economics of growing medical pot -- In the era of medical marijuana, some growers lead lifestyles that might be familiar to many people around the Capitol. Self-described workaholics, they aren’t getting rich, but many make nice, six-figure incomes. Malcolm Maclachlan in Capitol Weekly -- 2/26/09

All in the family: Assemblyman follows in his father’s footsteps -- The very mention of Assemblyman Brian Nestande’s family name holds resonance for a certain generation of California political insider. It recalls a political era that stands in stark contrast to the divisive and dysfunctional budget process the state just endured. Anthony York in Capitol Weekly -- 2/26/09

Feds: Hedge Funders Blew It on Alimony, Cars -- Wall Street money managers who handled investments for San Diego County's retirement system have been charged with securities fraud. GENE CUBBISON nbcsandiego.com -- 2/26/09

The Capitol Weekly Interview: Meg Whitman -- One of the stars of this past weekend’s Republican State Convention in Sacramento was Meg Whitman. The former CEO of the online auction giant eBay announced her run for governor in 2010 as a Republican on Feb. 9. She immediately followed this with a round of talk shows and interviews. She spoke to the Capitol Weekly on Feb. 12. Malcolm Maclachlan in Capitol Weekly -- 2/26/09

Home sales soar as prices plummet -- Sales of existing homes in California have been soaring, thanks largely to the availability of so many distressed, relatively low-priced properties, according to a new report from the California Association of Realtors. Dan Walters SacBee Capitol Alert -- 2/26/09

Senator resurrects dam ideas -- State Sen. Dave Cogdill, the leading Republican on water policy and a staunch ally of Gov. Arnold Schwarzenegger's push for a comprehensive strategy to shield the state from perpetual shortages, has unveiled the latest in a string of proposals to build new reservoirs. Michael Gardner in the San Diego Union-Trib -- 2/26/09

Ballot information omits Proposition 1A tax extensions -- If voters rely solely on ballot arguments when deciding in May whether to pass a constitutional limit on state spending, they will miss the fact that the measure also would extend higher sales, vehicle and income taxes by up to two more years. Kevin Yamamura in the Sacramento Bee -- 2/26/09

Californians give Schwarzenegger, Legislature poor performance reviews -- The governor gets a 33% approval rating, lawmakers 21%, according to a new poll. However, 70% like the way President Obama does his job. Michael Finnegan in the Los Angeles Times Dan Walters SacBee Capitol Alert -- 2/26/09

Skelton: Schwarzenegger is getting his second wind as a reformer -- Gov. Arnold Schwarzenegger says he "absolutely" loves the idea of holding a constitutional convention to overhaul state government. California hasn't had such a confab in 131 years. But as Sacramento continues to embarrass itself, a citizens' movement is mounting to call one. George Skelton in the Los Angeles Times -- 2/26/09

State strongly favors abortion rights, but reservations grow -- Two-thirds of Californians support a woman’s right to a legal abortion, but there is growing sentiment that restrictions should apply to abortion rights, according to this new survey released by the Pulblic Policy Institute of California. Martin Wisckol in the Orange County Register -- 2/26/09

Prop. 8 strategy could backfire, says backer and legal expert -- But Prop. 8 backer John Eastman, dean of the Chapman Law School, says a key part of the argument for the measure lacks durability and could eventually breakdown among the coalition of voters supporting the measure. That could lead to a subsequent ballot measure ending the gay marriage ban. Martin Wisckol in the Orange County Register -- 2/26/09

Let The Campaign Begin == Election Day across California is only 83 days away. Can you feel the excitement? John Myers Capitol Notes weblog -- 2/26/09

Senators delay confirmation of California Fish and Game chief -- State senators Wednesday postponed the confirmation of Fish and Game Director Donald Koch, saying a hearing on the matter raised bigger issues about the department itself – and how regulators are managing California's beleaguered environment. Matt Weiser in the Sacramento Bee -- 2/26/09

Ortiz: Tech alone can't transform state government -- The election for California's next governor is nearly two years away, but Republican contenders Steve Poizner and Meg Whitman are already selling the notion that technology can improve government – and shrink the state work force. Jon Ortiz in the Sacramento Bee -- 2/26/09

Ackerman joins Nossaman law firm -- Former Senate Republican leader Dick Ackerman has been announced as the newest partner of the law firm Nossaman LLP, working out of Orange County. Shane Goldmacher SacBee Capitol Alert -- 2/26/09

Hundreds arrested in U.S. probe of Mexican drug cartel -- Fifty arrests in California and elsewhere are the latest among 730 targeting the Sinaloa cartel in a 21-month investigation. Josh Meyer in the Los Angeles Times -- 2/26/09

California cracks down on workers' comp avoidance tactic -- Atty. Gen. Jerry Brown sues Contractors Asset Protection Assn., a Rancho Santa Fe firm that advises employers to avoid buying the insurance by classifying workers as corporate officers. Marc Lifsher in the Los Angeles Times Mike Freeman in the San Diego Union-Trib -- 2/26/09

California layoffs top 50,000 in January -- Mass layoff announcements in California during January triggered 54,135 initial unemployment claims among workers, the most of any state in the country, the Bureau of Labor Statistics reported Wednesday. Jim Wasserman in the Sacramento Bee -- 2/26/09

Mortgage relief via the courts -- The House is expected to back legislation enabling bankruptcy judges to reduce loan balances. Lenders object, but economists say reducing mortgage debt is a key to an economic recovery. Jim Puzzanghera in the Los Angeles Times -- 2/26/09

Date clarified for $10,000 tax credit eligibility -- A $10,000 state tax credit for new-home buyers in California will begin for people who close escrow on or after March 1, the California Franchise Tax Board announced Tuesday. Jim Wasserman in the Sacramento Bee -- 2/26/09

California gets 11% of HUD quick recovery cash -- California’s getting roughly 11% of the cash the U.S. Department of Housing and Urban Development (eh, HUD) has quickly dished out from the American Recovery and Reinvestment Act of 2009 just signed into law. Jon Lansner in the Orange County Register -- 2/26/09

Speier plan would aid refinancing in Bay Area -- Legislation heading to the floor of the House would help more Bay Area homeowners qualify for the mortgage relief in President Obama's housing rescue plan. Carolyn Said in the San Francisco Chronicle -- 2/26/09

Lazarus: Offer to reassess home raises red flag -- One firm is charging $179 upfront for filing a request for a review that's free through L.A. County. David Lazarus in the Los Angeles Times -- 2/26/09

Some landlords cut retailers' rents in rocky time -- In tough times, business owner Greg Bauer has some advice for fellow battered retailers: Ask your landlord to negotiate. Bob Shallit in the Sacramento Bee -- 2/26/09

Wind energy still slow in California -- But the company behind one of the two wind energy projects completed last year in California, which formally dedicates the project today, doesn't expect more than a handful of these projects to be built in California in the near future. Matt Nauman in the San Jose Mercury -- 2/26/09

  -  San Jose officials move into action, hoping to woo A's -- A day after the Oakland A's cut off relocation talks with Fremont, San Jose's elected officials and community leaders jumped to work Wednesday on reviving a stadium romance that withered nearly three years ago. Denis C. Theriault in the San Jose Mercury -- 2/25/09

  -  Sacramento Mayor Johnson drops the 'A's' word -- as in Sacramento A's -- It may not have been former Mayor Joe Serna Jr. donning a green and yellow cap and boasting he would bring Major League Baseball to Sacramento, but the timing of Mayor Kevin Johnson's invitation today to the Oakland A's has people wondering. Ryan Lillis in the Sacramento Bee -- 2/25/09

Alameda County's general assistant program running in the red -- The county's general assistance program — which provides a stipend for needy adults who do not qualify for state or federal aid — is projected to be $11.5 million in the red by the end of the current fiscal year, leaving social services officials looking for ways to get costs under control. Chris Metinko in the Oakland Tribune -- 2/26/09

Santa Monica sees some progress in its battle to get the homeless off the streets -- Long known for generosity to transients, the city has adopted a program to provide transitional housing and treatment. An 8% drop in the street population is reported. Martha Groves in the Los Angeles Times -- 2/26/09

Police union sues San Bernardino leaders to block cutting of hours, pay -- The San Bernardino police union sued Wednesday to block city leaders from cutting officers' work hours and pay by 10 percent to help erase a budget deficit. CHRIS RICHARD in the Riverside Press -- 2/26/09

Around $90 million in stimulus funds coming to the South Bay -- About $90 million in stimulus funds will be headed to Santa Clara County, with most of the cash going toward repairing pavement, buying hybrid buses and installing metering lights along Interstate 280 through San Jose. Gary Richards in the San Jose Mercury -- 2/26/09

Reclaim your cash, and you'll likely get a state IOU -- State Controller John Chiang's office is holding off on paying cash claims for at least a month, blaming the delay on the Legislature's protracted budget battle. Robert Faturechi in the Sacramento Bee -- 2/26/09

Los Angeles may hire film czar -- Facing a sharp decline in the shooting of big-budget productions in Los Angeles, city officials are considering hiring a "film czar" to promote their interests with the multibillion-dollar entertainment industry. Rick Orlov in the Torrance Daily Breeze -- 2/26/09

No change in Steve Jobs' plans, Apple director says -- The CEO still plans to return from medical leave at the end of June, Arthur Levinson says at the computer maker's annual shareholder meeting. AP -- 2/26/09

$318 Billion Tax Hit Proposed -- President Barack Obama on Thursday will propose $634 billion in new taxes on upper-income Americans and cuts in government spending over the next decade to pay for his promised health-care expansion. LAURA MECKLER in the Wall Street Journal JACKIE CALMES and ROBERT PEAR in the New York Times Ceci Connolly in the Washington Post Noam Levey in the Los Angeles Times -- 2/26/09

Lobbyists Line Up to Torpedo Speech Proposals -- Industries from health care to agribusiness to mining that stand to lose under President Barack Obama's policy agenda are ramping up lobbying campaigns to derail or modify his plans. BRODY MULLINS and SCOTT KILMAN in the Wall Street Journal -- 2/26/09

CIA Director Panetta already talking tough -- Late last year former Monterey Rep. Leon Panetta was busy giving transition advice to then-President-elect Obama's team while insisting he had no desire to leave the Carmel Valley. Zachary Coile in the San Francisco Chronicle -- 2/26/09

Capistrano district prepares to cut $25 million, 356+ jobs -- Deep cuts would wipe out class-size reduction, about 254 teachers. SCOTT MARTINDALE in the Orange County Register -- 2/25/09

FUSD scores see 'large gain' -- Fresno Unified School District's test scores improved significantly between 2000 and 2007 though they remained below the state average, the Brookings Institution reported Wednesday. Mark Grossi in the Fresno Bee -- 2/25/09

Educators say they need more resources to answer Obama's call -- Colleges, adult schools and vocational programs will need more money and classrooms if they’re going to answer President Obama’s call for Americans to get more education, local educators said. Jean Cowden Moore in the Ventura Star -- 2/25/09

Stanford cuts 21 positions in athletic department -- The university, which has one of the biggest athletic departments in the nation, said Wednesday that the 13 percent staff reduction would come from administrative and service areas. It would take effect next week. AP -- 2/25/09

Who made the big bucks at Chapman University? -- The dean of Chapman University’s law school earned almost as much as the university’s president in 2007 - and the dean of its business school wasn’t far behind. Teri Sforza in the Orange County Register -- 2/26/09

A charter schools tax, paid by the Oakland school district -- California's superintendent of public instruction, Jack O'Connell, has ordered the state-run Oakland school district to divert $480,000 of its funds to the city's independently run, public charter schools — about $60 for every charter school student. Katy Murphy in the Oakland Tribune -- 2/26/09

Pasadena-based plan for online university draws interest -- An Israeli entrepreneur hopes to start a global, very-low-cost institution soon. But by dispensing with professors, it's already a tough sell for some. Raja Abdulrahim in the Los Angeles Times -- 2/26/09

High school un-cancels production of 'Rent' -- A controversy erupted when the Corona del Mar High School play was canceled over possible objections to gay content. But the principal has reviewed the script and the show will go on as planned. Susannah Rosenblatt in the Los Angeles Times -- 2/26/09

Regional campus to replace 2 Catholic schools -- Sacramento Catholic school officials, citing declining enrollment and ongoing financial problems, have announced plans to close two south Sacramento elementary schools and replace them with a regional campus. Jennifer Garza in the Sacramento Bee -- 2/26/09

Californians divided on population growth's impacts -- California has too many people, according to a slim majority of those people. But a new poll finds that the number of people who see population growth as a big problem has declined sharply since a decade ago, when clogged freeways, blackouts and sprawling suburbs were iconic images for a popular notion of unchecked California growth. Matt O'Brien in the Contra Costa Times -- 2/26/09

Officials have yet to figure out California budget's impact on transportation funding -- California's numbers crunchers have yet to figure out when the newly signed budget package will unleash money needed for bond-financed projects. Andrew Edwards in the San Bernardino Sun -- 2/25/09

Commission Urges Taxing Drivers More -- The government should make it a lot more expensive for Americans to drive and should install devices in cars that levy a fee for every mile traveled, according to a report being released Thursday by a congressionally chartered commission. CHRISTOPHER CONKEY in the Wall Street Journal -- 2/26/09

San Onofre's Problems Continue -- Mistakes and management problems continue to mount at the San Onofre nuclear plant, despite an unprecedented executive shake-up and a year-long effort to convince federal regulators and an industry ratings group that things are improving. ELIZABETH DOUGLASS Voiceofsandiego.org -- 2/25/09

Bottled water consumes a lot of energy -- Bottled water, increasingly popular because of its convenience and presumed purity, also consumes a lot of energy to produce and transport, according to an exhaustive new study by Oakland-based Pacific Institute. Dan Walters SacBee Capitol Alert -- 2/26/09

Folsom sets new limits on water use -- Further water restrictions have been issued for the city of Folsom, limiting the amount of water residents can use for lawns and landscaping. Niesha Lofing in the Sacramento Bee -- 2/26/09

El Dorado leaders reject Highway 50 detour -- El Dorado County officials have declared "unacceptable" a proposed Highway 50 detour that would bypass El Dorado County and add 90 minutes to the trip from Sacramento to South Lake Tahoe. The item is in the Sacramento Bee -- 2/25/09

Ruling OKs curbs on some freeway billboard ads -- California's restrictions on commercial advertising on billboards alongside landscaped freeways promote highway aesthetics and don't interfere with free speech, a federal appeals court ruled Wednesday. Bob Egelko in the San Francisco Chronicle -- 2/26/09

San Francisco pushes PG&E on bay sediment toxicity probe -- Hazardous chemicals in bay sediment near San Francisco's single remaining large power plant threaten the health of people and marine life, yet Pacific Gas and Electric Co. has been slow to investigate the problem, according to Port of San Francisco officials and city leaders. Robert Selna in the San Francisco Chronicle -- 2/26/09

California ban on salmon fishing likely for '09 -- Prospects are not good this year for the folks who fish for salmon off the California coast - or for the people who like to eat it. Peter Fimrite in the San Francisco Chronicle -- 2/26/09

Administration blocks more Bush-era oil shale development leases -- Interior Secretary Ken Salazar cancels what he calls a 'headlong rush' to develop in the Mountain West. He also announces more research-only leases in the region. Jim Tankersley and Nicholas Riccardi in the Los Angeles Times -- 2/26/09

Supreme Court questions use of ID theft law against illegal workers -- The justices appear sympathetic to an undocumented immigrant who claimed that he didn't know his fake identification had an actual person's Social Security number. David G. Savage in the Los Angeles Times -- 2/26/09

Mission District rally for immigrant rights -- Several hundred people packed a school auditorium in San Francisco's Mission District on Wednesday evening to decry the city's treatment of immigrants, making their case in front of a panel of city officials that included representatives from the Police Department, mayor's office, school board and Board of Supervisors. Marisa Lagos in the San Francisco Chronicle -- 2/26/09

Police not focusing on dangerous illegal immigrants, study says -- Police officers empowered by a federal program to enforce immigration laws are instead arresting day laborers and street vendors, the report finds. Anna Gorman in the Los Angeles Times -- 2/26/09

State grapples with retirees' health benefits -- The cost of health care benefits for retired state employees will dramatically increase in the coming years, worsening California's financial woes, unless lawmakers come up with a plan to pay the bills, according to a report by the state controller. Wyatt Buchanan in the San Francisco Chronicle -- 2/26/09

Medicare cuts, tax hike on wealthy to pay for healthcare plan -- Obama budget proposes $634-billion fund to bring coverage to 47 million uninsured. Noam Levey in the Los Angeles Times -- 2/26/09

Cigarettes in New Film Stir Anger at Studio -- Angry at Warner Brothers over images of cigarettes in the comedy “He’s Just Not That Into You,” an arm of the American Medical Association is demanding that the studio step up its policing of tobacco images on screen. BROOKS BARNES in the New York Times -- 2/26/09

Big jump in Alzheimer's cost expected in state -- The cost of caring for Californians with Alzheimer's disease is expected to grow from $50.5 billion to $98.8 billion over the next 20 years, an increase of 96 percent, according to a report released today by the Alzheimer's Association. Victoria Colliver in the San Francisco Chronicle -- 2/26/09

Alzheimer's cases could double in Valley in 20 years -- As baby boomers age and seniors live longer, cases of Alzheimer's disease could double in the central San Joaquin Valley in the next two decades, a new report says. Barbara Anderson in the Fresno Bee -- 2/25/09

Man says he was informant for FBI in Orange County -- He identifies himself in a court filing as having infiltrated mosques in Orange County on behalf of the agency. Teresa Watanabe and Scott Glover in the Los Angeles Times -- 2/25/09

Sacramento County trying to get back $52 million lost in alleged investment scam -- Sacramento County's pension system stands to lose as much as $52 million thanks to the latest Wall Street scandal. Robert Lewis in the Sacramento Bee -- 2/26/09

Riverside First 5 Commission looks at perception of conflict of interest -- The chairman of the First 5 Riverside Commission on Wednesday said he thinks the agency needs to quickly address the perception of favoritism if it is going to improve the services it provides to Riverside County parents and children. LORA HINES in the Riverside Press -- 2/26/09

Orange County health care program for jail inmates mismanaged -- The county's Health Care Agency severely mismanaged a $36 million program providing medical care for jail inmates, an internal report has found. NORBERTO SANTANA JR and TONY SAAVEDRA in the Orange County Register -- 2/26/09

Ready, set, protest: San Francisco racers resist new Bay to Breakers rules -- Feelings are running high over efforts to tone down some of the wilder elements of this city's famously freewheeling Bay to Breakers foot race. Michelle Locke AP -- 2/26/09

Morain leaves Times for trial lawyers -- Dan Morain, a 27-year veteran of the Los Angeles Times and a fixture in the paper's Capitol bureau for the last 15 years, has left the paper for a job at the Consumer Attorneys of California. Morain, who covered campaign finance issues in recent years, will be communications director for the trial lawyers' group. Shane Goldmacher SacBee Capitol Alert -- 2/26/09

Hands-free cell phone critic going hands-free -- Grant Paulson — the Pleasanton man who spent $10,000 for a blunt billboard blasting California's ban on handheld cell phones and the state senator who authored it — is testing a speakerphone system, compliments of the head of a wireless company who read about Paulson in the Mercury News. Gary Richards in the San Jose Mercury -- 2/26/09

Got milk? -- A Los Angeles Assemblyman has introduced legislation that would require 30-minute work rest breaks for mothers who are extracting milk for babies and require insurance companies to include coverage for lactation training and rentals of breast pumps. Wyatt Buchanan Chronicle Politics Weblog -- 2/26/09