[courtesy of The California Majority Report]

Californians enjoy a lot of tax breaks, some of which seem ratherobsolete. The Sacramento Bee reports that Governor Schwarzenegger andLegislative Democrats are looking at closing some holes, suchas an arbitrary child tax credit that mostly benefits the upper-income.Of course, Legislative Republicans reflexively say no because it's a"tax increase."

Senator Dianne Feinstein is asking the San Francisco Board of Supervisors to turn down the heat on the Chinese—for now, according to the Chronicle. Feinstein, who along with her husband hasbeen friendly with the Dalai Lama for many years, says it would bepremature to protest the Beijing Olympics before direct talks happenbetween the Tibetan leader and the Chinese.

Tom McClintock (above), the supposed champion of fiscal responsibility, has taken hundreds of thousands in per diems designed for legislators who live far away, while his family resides in a Sacramento suburb, according to the LosAngeles Times. This may be of interest to the residents of the FourthCongressional District, many of whom lionize him even though his olddistrict is in Ventura.

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[courtesy of The California Majority Report]

California will lose a trusted public servant and bona fide "budget nun" when Elizabeth Hill steps down from the Legislative Analyst's office atthe end of this year. She called it like she saw it, never doing favorsfor unions or property owners, Republicans or Democrats, the LosAngeles Times reports. I met Hill when she visited my school a year orso ago and was really impressed by her candor and pragmatism—it's aloss.

It isn't just gas that is rising in price. Food, too, is becoming a higher expense for California families, with many in Northern California forced to ration, buy foods on saleand come out retirement to take part-time work, the Sacramento Beereports. This where the economy really starts to pinch.

Statewide protests against Governor Schwarzenegger's proposed budget cuts are underway, with many education advocates declaring a "morality problem" rather than a spending problem with respect to K-12, the LA  Timesreports. It may be premature, however, to focus one's attention onArnold's budget, given its swift dismissal by everyone who takesbudgets seriously—the numbers are going to look quite different in acouple months.

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[courtesy of The California Majority Report]

It's official: Al Gore has won a Nobel Peace Prize for hisextraordinary efforts to raise consciousness of global warming, the LosAngeles Times reports. The designation has renewed calls for Gore to throw his hat in the ring for the Democratic presidential nomination, a move he continues toshrug off. But of all the existing candidates, none besides BarackObama has the resources to compete with Hillary Clinton inCalifornia—Gore would.

On the Obama note, supporters across California are getting active andaggressive following the opening of his Oakland campaign headquarters,and the LA Times reports he is moving into the next phase of hiscandidacy, which will focus on sharpening his differences with his competitors. But how explicitly is Obama willing to criticize Hillary?

[courtesy of The California Majority Report]

Just as surely as the sun sets over the Pacific Ocean, the state GOP is not happy with our popular, moderate, movie-starGovernor, who is set to address the party's convention tonight, the LosAngeles Times reports. Republicans are convinced that Arnold is out oftouch with their rank and file on key issues and seem unwilling even towork with him. Their loss.

Governor Schwarzenegger may have gained an important ally in his health care reform efforts with the California HospitalAssociation now willing to support a tax on itself, but he has a longway in convincing his fellow Republicans, the LA Times reports. GOPpoliticians like Senator George Runner insist on seeing the "totalplan," which sounds like a stalling tactic.

Air Resources Board chief Mary Nichols revealed her agencies prioritiesfor greenhouse gas emission reductions this year, drawing praise fromenvironmental groups and signaling that the Governor's office is back on track in the fight against global warming, the Sacramento Bee reports. New requirements include keeping tiresinflated, preventing cargo ships from idling and streamlining big rigs.

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Photo courtesy of abcnews.com

[courtesy of The California Majority Report]

This year's 52-day late budget adds to the allure of switching to a majority rule, which is the law of the land in all but California, Alaska and RhodeIsland, the Sacramento Bee reports. Even conservative Republican Sen.Tom McClintock (left), one of this year's 14 crusaders has suggestedthat the two-thirds rule does not induce better budgets. Rather, it washas allowed wavering GOP legislators to vote "aye" in exchange fordistrict pork.

Lost amidst the partisan gridlock over the budget is the fact that someprograms that cost a lot now could save us a lot down the road. The LosAngeles Times reports that rehabilitation programs aimed at thementally ill homeless took a $55 million hit, a cut Sen. Darrell Steinberg called "unconscionable." Helping peoplerebuild their lives is expensive, but if we succeed, we've saved a lotfor next year and possibly saved lives too.

[courtesy of The California Majority Report]

Gov. Schwarzenegger publicly flirted yesterday with supporting a change to the oft-derided "two thirds rule" for passing the state budget, the Sacramento Bee reports. We certainlycould have used his support three year's ago when he joined withbusiness and anti-tax groups to defeat Proposition 55, a common-sensemeasure that would have lowered the tax-raising threshold to 55percent. At least he's seeing the light now.

Arnold is also turning up the heat on Senator Jeff Denham (above), the MercedRepublican who has refused to move on the budget despite supporting apackage with higher spending and lower reserves last year, the LosAngeles Times reports. The Governor encouraged Denham's constituents tocall him up and say "it is up to you now, you are our man," to which Denham angrily responded that he would not be "bullied, intimidated or pressured."

[courtesy of The California Majority Report]

Apparently there was a Nixon library and birthplace in Yorba Linda, the ”most kicked around” of the presidential libraries according to the LosAngeles Times. The library was so hokey that visitors were lectured onhow Watergate was a conspiracy to bring down the president, a claim sooutrageous that people were “not sure whether to laugh or cry.” The government tore down the old facility and is starting over. Probably a wise move.

Speaking of not being sure whether to laugh or cry, what do we make of Gov. Schwarzenegger’s unusual habit hiring back old Gray Davis staffers? The San Diego Union Tribune reports that half a dozen of Arnold’s topaides held key positions in the previous administration, makingpartisan GOPers cringe. But Tony Quinn of the California Target Booksummed it up well: “Schwarzenegger is a bright guy. He figured out thatthe Republican Party isn’t relevent to where the state is going.”