[courtesy of The California Majority Report]

A settlementis near on California's overcrowded prisons, reports the SacramentoBee. Two federal judge referees have laid out a plan that would givemore funding to manage probationers, cut down returns to prison forminor parole violations, and give time credit incentives for inmateswho complete programs.

Governor Schwarzenegger's lottery plan could shortchange educationin the future, says Legislative Analyst Elizabeth Hill. "We certainlyhave a concern with the magnitude of the governor's lottery proposal,"Hill said . "We think, in terms of our counterproposal, it's much moremodest."

A House investigative committee has found that White House officials were involved in persuading EPA Administrator Stephen Johnson to refuse to regulate greenhouse gas emissions.

There's more... 

[courtesy of California Progress Report]

By Anthony Wright
Executive Director of Health Access California

In Schwarzenegger's presentation on the budget last Wednesday, when being grilled by the media on the specifics of his lottery proposal and other elements of his budget, he made a point to invoke his "don't forget health reform" pitch: he indicated it was a shame it didn't pass earlier in the year, and how he is still committed to doing health reform in his term:

"As you know, we have made severe cuts in health care. And when it comes to health care, what is even more painful is that we didn't get health care reform done, because that would have given Medi-Cal an additional $4 billion dollars. So we are going to go and continue staying on that subject of health care reform, and continue working with the stakeholders together to get this done."

Some, especially those in the Senate, used the budget crisis as an excuse to stall AB x1 1, the negotiated plan between the Governor and the Speaker, saying it wasn't the right time for such an ambitious effort in the middle of a budget crisis. Others, especially in the Administration, stated that the budget deficit only reinforced the urgency of health reform.

[courtesy of California Progress Report]

Senate President pro Tem Don Perata made the following remarks today about the Governor’s May Revision to the state spending plan for 2008-09.

“This budget and its reasoning, candidly, is very disappointing. It’s really a budget that is beneath this great state of California. It’s kind of a subprime budget – risky borrowing for what we cannot afford. It’s an admission of failure.”

“The lottery proposal that he unveiled today is the worst kind of market speculation, worse even than the speculation that caused the housing collapse in the subprime debacle that caused millions of Americans to lose their homes.”

“By the way, last year’s budget included the sale of the EdFund. The Governor now has moved that sale two years into the future. I think the reason is the investment banker was Bear Stearns. Bear Stearns, of course, went bankrupt trying to profit off the subprime mortgage industry.”

[courtesy of The California Majority Report]

You probably heard already that Karen Bass made history yesterday whenshe was sworn in as the first African-American woman speaker inCalifornia history, as the Los Angeles Times reports. She is to be commended and congratulated, but not envied: the months ahead for the Assembly will not be easy.

How quickly Arnold has changed his tune. Administration officials told the Sacramento Bee that the Governor will release a budget that borrows from state lottery income, but does not short-change our schools or close down 48 state parks.Speaker Bass has already called the plan "risky," so we'll see how farit goes.

Before you can say "no-tax pledge," the LA Times reports that Arnold has an alternative to the lottery proposal: a sales-tax increase. The Governor deserves credit for his willingness to bend with thetimes, although it is difficult to be so optimistic about the GOPcaucus.