Los Angeles Times

California budget cuts may weaken Lee Baca's threat to close a jail
The Los Angeles County sheriff made similar threats seven years ago when told to trim his budget. This time, supervisors weigh other factors.
By Molly Hennessy-Fiske
Los Angeles County Sheriff Lee Baca has been locked in a budget battle with county supervisors in recent weeks, threatening to close a jail and release prisoners early if he is forced to cut $25 million from his $2.5-billion budget.

Another wave of foreclosures is poised to strike
Mortgage defaults have surged to record levels amid rising unemployment and falling home prices. Lenders are expected to move quickly to clear up backlogs as moratoriums on foreclosures expire.
By Don Lee
Just as the nation's housing market has begun showing signs of stabilizing, another wave of foreclosures is poised to strike, possibly as early as this summer, inflicting new punishment on families, communities and the still-troubled national economy.

The Sacramento Bee

Schwarzenegger praises state's diverse economy
By Susan Ferriss
California is issuing IOUs and still doesn't have a balanced budget, but Gov. Arnold Schwarzenegger said Friday that it's far from the worst state in the nation for business.

Furloughs expected at California State University system
By Laurel Rosenhall
The furlough has become an unfortunate reality for many Sacramento area residents. More than 200,000 state workers are now facing a third monthly furlough day. About 18,000 UC Davis employees will probably have to take furloughs starting in August.

Congressional candidate gets national attention
By Rob Hotakainen
Anthony Woods says he grew up without health insurance, struggled to get an education and fought in Iraq, a war he didn't believe in.

The Buzz
Attorney General Jerry Brown, who's expected to make an encore bid for governor in 2010, says his campaign has between $7.3 million and $7.4 million "net" in the bank.

Capitol Alert
AM Alert: That crazy California

The San Francisco Chronicle

Governor backs off plan to suspend Prop. 98
Matthew Yi, Chronicle Staff Writer
Gov. Arnold Schwarzenegger said Friday he is willing to reconsider his most recent proposal to help close the state's $26.3 billion budget shortfall by suspending state constitutional rules that control education spending in order to make deep cuts in school funding.

Editorial: State budget mess only gets worse
This is an IOU for our elected leaders in Sacramento: an editorial complimenting your statesmanship and courage. It is redeemable once you end your political posturing, waive your ideological dogma - remove those lines in the sand - and work together to bridge a budget deficit that has forced this state to ration its cash and risk insolvency.

The Mercury News

California dreamin' hits the skids of foreclosures and IOUs
By Patrick May
Has the California dream been put on layaway?

Contra Costa Times

Divisive Delta canal now on the fast track
Fears loom that moving water south could devastate, contaminate supply
By Mike Taugher
Chuck Baker grows pears on land his family has worked since 1851 and has a farmer's sensitivity to the plagues of modern agriculture — pesticide regulations, the intrusive hand of federal regulators, the threat to private property posed by wetlands restoration — and, most of all, the need for water.

How it works: The Bay Delta Conservation Plan
By Mike Taugher
In early 2005, state biologists began sharing some alarming new information: The populations of an entire suite of Delta fish species had begun a nose dive three years earlier.

The San Diego Union-Tribune

Editorial: The real story
Why budget wasn't fixed by deadline
With all the variables known and all the key players having been negotiating for weeks, why wasn't the 2009-10 state budget fixed by the Tuesday deadline?

Ventura County Star

2 budget-cutting plans urged dropped
District Attorneys group targets corrections department proposals
By Mike Harris
California’s district attorneys, including Ventura County’s Greg Totten, are urging Gov. Arnold Schwarzenegger to reject two Department of Corrections and Rehabilitation proposals aimed at reducing its budget by cutting its inmate population.

The Press-Enterprise

Forest Service sees management plans struck down in court
By BEN GOAD
Southern California's forest plan is in limbo following a recent court order declaring that it violates federal law, a finding that could impact measures being taken to manage the region's vast forestland and reduce the perennial danger of catastrophic fire.