Neutral

"Democratic activists ignored the pleas of party leaders Sunday and refused to endorse a controversial package of budget measures on the May 19 special election ballot," reports John Wildermuth in the Chron.

"Proposition 1A, a proposed spending cap and rainy-day fund, fell short of the 60 percent vote needed from the delegates to the annual party convention, as did Proposition 1D and Proposition 1E, measures that would take money from funds for early childhood education and mental health care and use it to close the state's $42 billion budget gap.

"The votes, which mean the party will take a neutral position on the three ballot measures, come a little more than a week after state Republican Party officials voted to oppose all six of the budget measures on the ballot. The Democrats on Sunday agreed to back the remaining three: Proposition 1B, which provides $9.3 billion in new school funding, but only if Prop. 1A also passes; Proposition 1C, which allows the state to borrow up to $5 billion against future lottery revenue; and Proposition 1F, which blocks salary raises for government officials in budget deficit years."

The LAT's Michael Finnegan reports:  "The mixed verdict by more than 1,200 delegates to a state party convention came after a nasty floor fight over the grim menu of proposed solutions to California's severe budget crisis.

"'We've got all kinds of divisions,' Art Pulaski, leader of the California Labor Federation, AFL-CIO, said of the fractures among unions that drove the party's internal rift. 'It's not unusual for us.'

"Republicans, too, are split on Propositions 1A through 1F. The state Republican Party has broken with Schwarzenegger, its standard-bearer, and begun fighting the measures."

Ah, but some were still spinning.

"Despite Proposition 1A's failure, Senate President Pro Tem Darrell Steinberg argued that the measure got an important boost," writes the Bee's Peter Hecht.

"'You know what? I'm happy,' Steinberg said. 'The (endorsement) rules are a little odd. But I'm very pleased that 58 percent of the convention supports Proposition 1A. The majority of folks realized that there are billions of dollars in public investments at stake.'"

Steve Maviglio goes a step further, making an endorsement out of the non-endorsement.

Meanwhile, the governor picks up the phone to ask George Skelton to dumb down Proposition 1A.

"'Explain it a little bit simpler,' he urges in a phone chat.

"And how would he explain it, I ask.

"'We should just simply describe 1A as a measure that will fix the broken budget system once and for all so that you never have to make those severe cuts again,' he answers. 'And you never have to go back to the people for tax increases again. That's it.'

"OK, that's a stretch, but it gets close to the measure's intent.

"There is a tax element, however, that can't be ignored and is widely known because of news reporting and talk radio. And it should have been addressed candidly by the Prop. 1A campaign weeks ago.

"It's that if Prop. 1A passes, separate legislation -- not on the ballot -- automatically will continue sales, income and car tax hikes for up to four years."

The ballot measure fight wasn't the only news out of the Democratic Convention, however. 

Carla Marinucci and John Wildermuth report for the Chron:  "The lively sparring between the camps of Newsom and Brown - both on and off stage - before the state convention delegates this weekend provided the first back-to-back look at two high-profile Democrats expected to clash in the 2010 governor's race. With Los Angeles Mayor Antonio Villaraigosa skipping the convention - to work on city budget issues, according to his staff - Newsom and Brown commanded the spotlight as they unveiled contrasting messages, themes and political strategies to provide a preview of the next big Democratic primary contest."

Newsom would like nothing more than to make this a two-person race.

The Bee's Peter Hecht writes: "The appearance of the two men came at a Sacramento gathering full of populist calls for universal health care, workers rights and protection of vulnerable residents and the environment. But the rhetoric contrasted with a bitter Democratic rift over a burgeoning California budget crisis and controversial special election initiatives to address state fiscal woes.

"Newsom, who formally declared his candidacy for governor Tuesday on Facebook, Twitter and YouTube, took the podium cheered by a procession of young, sign-waving supporters. Without mentioning Brown, he essentially challenged delegates to choose between two politicians separated in age and experience by 30 years.

"'So what are we going to do next year?' Newsom asked. 'Will we offer voters a stroll down memory lane or a sprint to the future? Will we nominate candidates who know Sacramento or leaders who know how to change it? Will we choose the past, or will we embrace the future?'

"Speaking with the aid of a teleprompter, Newsom described himself as a contemporary leader with a proven record providing health care and environmental innovation.

And hair. Don't forget, he's got hair.

"Brown, speaking without a script, told of pushing solar energy as governor from 1975 to 1983, adding: 'People said, 'This is flaky.' People said, 'Moonbeam.' Well, 30 years later this is the national imperative.'"

Speaking of strolls down memory lane, John Burton took the reins from Art Torres. "Seventy-six-old political veteran John Burton pledged to lead California Democrats into the future today as he promised to fight the state's two-thirds budget vote rule and defeat a "devious" 2010 open primary initiative," posts Peter Hecht on Capitol Alert.

"Burton addressed delegates before he was overwhelmingly elected new state party chair to replace Art Torres, who is retiring after 13 years at the helm.

"Burton said he would guide Democratic efforts to get a measure on the ballot to allow state lawmakers to pass a budget with a simple majority vote.

"He also said he wanted to defeat "a very devious Louisiana open primary" in a 2010 measure pushed for by Republican lawmaker Abel Maldonado of Santa Maria as a concession for his recent "yes" vote on the budget.

"Burton called the measure a veiled attempt by Republicans and the California Chamber of Commerce to make Democrats less competitive in GOP districts." 

The U-T's James Sweeney gives Prop 1C the treatment.  "The measure could deliver $5 billion to help close the state's staggering $42 billion budget gap. At the same time, it would ease long-standing rules that some believe have held back the 25-year-old state lottery.

"Within a few years, however, Proposition 1C may only make the state's financial problems worse, the nonpartisan Legislative Analyst's Office has warned.

"The proposition, one of six budget-related measures on the May 19 ballot, would do away with the lottery's direct link to schools that now receive a set percentage of the proceeds. Instead, the money would go to the state's general fund.

"In return, schools would be guaranteed that amount from the general fund, but it would grow at a higher rate over the years."

Meanwhile, health-meters around the state have been set to swine.

"State and regional public health officials scoured hospitals and schools this weekend for cases of the new swine flu that has sickened at least 20 people in the United States and killed dozens in Mexico," report Erin Allday and Damien Bulwa in the Chron.

"There were seven confirmed cases of swine flu in California as of Sunday night, with one possible case at a school in Sacramento County. If confirmed, that case would be the first in the northern part of the state. The confirmed cases occurred in San Diego and Imperial counties, on the border with Mexico.

"Public health officials said Sunday that they expect more cases to turn up this week, as students return to school after the weekend and hospitals continue to increase surveillance. In preparation, the federal government issued a public health emergency on Sunday that will help with the distribution of drugs to treat and prevent spread of the virus to regions most affected.

"Meanwhile, California state and county public health officials were asking federal authorities Sunday to warn Americans against traveling to Mexico. The state officials said they expected the federal Centers for Disease Control and Prevention to issue such a travel advisory by today."

And, just in time, "Forced to slash their budgets, some California counties are eliminating nonemergency health services for illegal immigrants -- a move that officials acknowledge could backfire by shifting the financial burden to emergency rooms," writes Anna Gorman in the Times.

"Sacramento County voted in February to bar illegal immigrants from county clinics at an estimated savings of $2.4 million. Contra Costa County followed last month by cutting off undocumented adults, to save approximately $6 million. And Yolo County is voting on a similar change next month, which would reduce costs by $1.2 million.

"'This is a way for us to get through what I think is a horrible year for healthcare in California,' said William Walker, director of Contra Costa Health Services."

"Miss California Carrie Prejean, who became the bombshell of the Miss USA pageant by saying gay couples should not be allowed to marry, said Sunday that her state sponsors urged her to apologize afterward but she rejected the advice," reports the AP's Lisa Leff.

"Prejean, 21, said officials from the Miss California USA pageant were worried that her comments would cost their contest financial backing and tried to prepare her for a string of post-pageant media interviews by discouraging her from discussing her religious beliefs.

"'You need to apologize to the gay community. You need to not talk about your faith. This has everything to do with you representing California and saving the brand,'' Prejean recalled being told. 'I was representing California. I was representing the majority of people in California.'"

Hey, a straight-talking beauty queen. Maybe Mitt Romney can tap her as his vice president...