California's effort to fund stem cell research received a hefty infusion of cash today from state government.

Earlier today, state Department of Finance director Mike Genest signed off on a $150 million loan to the California Institute for Regenerative Medicine. That cash will jump start the CIRM's efforts to promote new medical research, while the $3 billion bond approved by voters in 2004.

That lawsuit has left the institute with cash largely provided through donations, and about only $14 million in actual research funds distributed.

Today's transfer of the cash comes after a stem cell research finance committee approved the proposal last week. The loan documents signed by both Genest and Robert Klein, chairman of the stem cell institute's Independent Citizen's Oversight Committee, call for the $150 million to be paid back to the state once the bonds are actually sold. Of course, there's a chance bond opponents will prevail in court. That would pretty much mean the state gets backs zero.

The CIRM has already received hundreds of grant applications from researchers, awaiting funding to begin their work.

A federal court has ruled that disabled voters cannot sue California elections officials on the basis of federal election law, but can continue their legal battle over allegations that certain voting machines are not accessible.

The case, filed earlier this year against Secretary of State Bruce McPherson and elections officials in four California counties, alleges that the voting systems certified by McPherson-- and purchased by the counties-- violate the rights of disabled voters under the federal Help America Vote Act (HAVA).

HAVA, the federal law created in the wake of the 2000 election debacle, mandated changes designed to improve the reliability and access of voting.

The plaintiffs, who have disabilities ranging from vision to movement impairments, allege that their right to vote without assistance was taken away by the voting machines selected by elections officials in Alameda, Marin, San Francisco, and Yolo counties for the June primary. They also allege that McPherson should never have certified the machines in the first place, given the provisions contained in HAVA.

In her ruling, Judge Saundra Brown Armstrong offered the equivalent of a 'win-win'... or, depending on how you look at it, a 'lose-lose'.

In a win for the elections officials, Judge Armstrong ruled that the plaintiffs are not entitled to pursue legal action under HAVA, because the language of the act only allows government (not indviduals) to sue for voting violations. But in a win for the plaintiffs, she rejected the argument from McPherson and the elections officials that the disabled voters lack any legal standing in regards to voting machines.

(She also rejects an argument made by the local officials that if anyone should be sued, it should be the person who certified the systems for use-- McPherson-- and not them.)

This means the legal debate over certain voting systems... from optical scanners to touch-screen devices... is likely to continue. Attorney John McDermott, who represents the disabled voters, says his clients will appeal the ruling on whether they can challenge under HAVA requirements. And he says even if that fails, his clients now can move forward with other legal action against elections officials.

But perhaps more importantly, none of those involved know what changes in the certification of voting machines may be in store in 2007, when McPherson is replaced as the state's top elections officer by Democrat Debra Bowen.

Late word this afternoon from administration sources, confirming that Governor Schwarzenegger's Cabinet secretary, Fred Aguiar, has decided to leave the administration.

Aguiar, a former legislator, was Schwarzenegger's first secretary of state and consumer services, and moved up to the job of cabinet secretary late last year-- the third such person to serve as top liaison to state agencies since the governor took office in 2003.

Administration sources speaking on background say Aguiar will remain on board to help train his eventual replacement (no word on who will get the job).

He becomes the fifth high profile adviser to the governor to make exit plans in the wake of Schwarzenegger's re-election... behind Legislative Affairs Secretary Richard Costigan, Education Secretary Alan Bersin, Press Secretary Margita Thompson, and Senior Adviser Bonnie Reiss.

In the wake of numerous post-election/post-Thanksgiving news reports about the pending agenda of Governor Arnold Schwarzenegger, this morning the governor's communications team laid out an overview for Capitol reporters.

And as the above quote from that briefing points out, the game plan is a big one.

The single largest policy debate on Schwaarzenegger's 'to-do' list-- reform of the state's health care system-- has been on the agenda for months. In fact, the governor first started promising to tackle the subject in an interview less than 24 hours after the June primary.

Add to that the following issues, according to gubernatorial communications director Adam Mendelsohn: additional infrastructure issues/proposals, education issues, prison reform, political redistricting, campaign finance reform, and proposals to implement 2006's landmark global warming legislation.

For many chief executives who, like Schwarzenegger, are often stuck in the middle between two camps of highly partisan legislators, that might be a blueprint for an entire second term-- and even then, more of a 'wish list' than a 'to do' list.

But not Governor Schwarzenegger, whose often-stated desire for immediate "action" appears to have not subsided.

"They are goals for 2007," Mendelsohn told reporters.

Attempting to counter the notion that the list is too ambitious, Mendelsohn pointed to last year's achievements-- on everything from infrastructure bonds to a minimum wage hike, cheaper prescription drugs, and more-- as proof that multiple tough issues can be resolved in one year.

In fairness, though, several of those issues (such as minimum wage and prescription drugs) actually endured several years of debate and disagreement... and were occasionally declared dead... before being signed into law.

Meantime, the following points were made on the specific subject of health care reform:

Schwarzenegger's core philosophy is "shared responsibility" for the costs-- including citizens, employers, and insurers... covering all of the estimated 6 million Californians without insurance is a "goal" and not necessarily a requirement (a point on which the governor has made somewhat conflicting public statements)... administration officials are now meeting with "hundreds" of stakeholders to solicit input... and no decision has been made as to whether the governor will actually push a specific plan, or rather task legislators with the overall goal of expanding health coverage.

That last point is worth noting. Mendelsohn, the governor's communications director, said that Schwarzenegger sees this year's negotiations on infrastructure bonds as a "model" that can be used in the 2007 health care debate. Of course, much of the bond deal was struck by Democratic and Republican legislative leaders on their own, sans the governor. It's unclear whether the two sides can do the same on an issue like health care, one that has bedeviled lawmakers on both the state and federal level for decades.

Just a note to wish you and yours a very Happy Thanksgiving. Barring any cooking catastrophes or lingering effects of tryptophan, I'll see you back here next week.

Cheers!

Democrat Lou Correa's lead over Republican Lynn Daucher has grown with another day of votes counted in Orange County's 34th Senate district, the final piece of the legislative puzzle for 2007.

The latest unofficial results now show Correa ahead of Daucher by 783 votes, up from 282 votes yesterday. And Daucher supporters continue to grumble about the write-in candidacy of Republican Otto Bade, whose late entry into the race as a more conservative choice for GOP voters has landed him 899 votes... enough, at this point, to have given Daucher the lead had Bade not joined the race.

Another day of vote counting down in Orange County's 34th Senate district has turned the race upside down-- with Democrat Lou Correa, who had appeared to lose on election night, now holding a 282 vote lead over Republican Lynn Daucher.

Daucher led in the unofficial returns by as many as 833 votes at one point. But as the counting of absentee and provisional ballots has moved forward this week, her lead started to dwindle. Yesterday, she was ahead by 147 votes.

Everyone knew this was going to be a close race between Correa, an OC supervisor and former assemblymember, and Daucher, a termed-out assemblymember. And several million dollars was spent on this race, which will probably end up being the most expensive legislative contest of 2006.

The ultimate winner certainly won't shift the main balance of power in the upper house; should Correa hold on for an official win, the tally would still be 25 Democrats and 15 Republicans (this seat was formerly held by termed out Democrat Joe Dunn). If Daucher holds on, the only discernible change from a macro perspective would be that major votes, like a state budget, would need three GOP votes in the Senate... not two.

When Arnold Schwarzenegger took the oath of office as California's 38th governor three years ago tomorrow, he pretty much went right to work. No lavish soirees, no inaugural balls with formal evening attire... just an outdoor ceremony, a luncheon with lawmakers, and an executive order to cut the Vehicle License Fee.

This time, it looks like he may finally get to throw a party.

Today, the governor formed an official inaugural committee and announced that he will take the oath of office on the morning of Friday, January 5 at Sacramento's Memorial Auditorium.

(Why indoors, you ask? Have you ever been in the capital city in early January? Last year at that time, Sacramento was watching its levees strain under a deluge of rainwater).

Today's news release noted the fact that this will be Schwarzenegger's "first and only formal inauguration." That certainly seems like there might be quite the array of inaugural parties, balls, and the like. But a spokesperson for the event says the details are far from all being worked out.

Still, history may be some guide. Former Governor Gray Davis had what was then described as a "toned down" inauguration in January 2003, with an evening event at the Sacramento Convention Center. But his first swearing-in party, held in 1999 at the sports/music venue of Arco Arena, drew some 7,000 party-goers.

So considering this is Schwarzenegger's only shot at a big bash, it could be quite the event.

And with that in mind, a tip for those of you who might be obsessed with Hollywood celebrities: Sacramento International Airport, Thursday night January 4th, probably flights from Burbank... just saying that you might want to check it out.

Republican Lynn Daucher continues to lead Democrat Lou Correa as returns trickle in from the 34th Senate race in Orange County. But her lead is getting smaller, not larger.

Today's unofficial returns show Daucher now ahead by 147 votes. That's down from yesterday, when she led by 302 votes... and down from last week, when Daucher led by as many as 833 votes.

The district, which is slightly more Democratic than Republican, was ground zero for the most contentious legislative race of the year. Both Daucher and Correa have served stints in the Assembly. And, predictably, both campaigns say their candidate will end up the winner once all the votes are counted.

But word is there are a few thousand provisional ballots still pending... which means the final answer may not come for several more days.

The transitions of top staffers has begun at the Capitol... with the biggest departure being Governor Schwarzenegger's top liaison to the Legislature heading back to the private sector.

Richard Costigan, who has been Schwarzenegger's legislaive affairs secretary since 2003, is leaving next month to head up the new Sacramento office of international law firm McKenna Long & Aldridge.

Costigan, a former top lobbyist for the California Chamber of Commerce, has been at the center of virtually every legislative negotiation between the GOP governor and the Democratically controlled Legislature. No word yet on his replacement.

In a statement this afternoon, the governor said the following: "Richard is one of the most talented, hardest working individuals I have ever worked with. He has served me and the people of California well and has been an integral part of my senior team since day one. He has served tirelessly and with the highest level of integrity -- I wish him the best in his new adventure."