The Roundup

After a week of name calling and communication breakdown, the budget negotiators ended this week on their best behavior, with long Big 5 meetings and nebulous promises of progress toward a budget deal.

AP's Judy Lin reports, "Against a backdrop of IOUs and expanding government furloughs, Gov. Arnold Schwarzenegger and legislative leaders expressed optimism Saturday that they were moving toward a compromise that could end California's fiscal calamity.

"Negotiations to close the state's $26.3 billion deficit restarted after two weeks of inaction and partisan bickering. Top lawmakers from both parties said a budget-balancing deal was possible in the coming week.

"I would say we're getting very close to a general framework, but there are still outlying questions," said Assembly Minority Leader Sam Blakeslee, a San Luis Obispo Republican, after emerging from a closed-door meeting between lawmakers and Schwarzenegger.

"They negotiated about 2½ hours Saturday before ending talks for the day. Senate Minority Leader Dennis Hollingsworth, who left Friday's meeting smelling of cigars, stayed on to smoke with Schwarzenegger's chief of staff in the courtyard of the governor's office. Negotiators were expected to return to the Capitol Sunday."

AP's Samantha Young reports that despite the progress, a deal remains elusive .

"

Lawmakers from both parties said Sunday that they had made headway after a weekend of closed-door meetings at the Capitol, but acknowledged a deal remained elusive. It was unclear when legislative leaders would reconvene for talks.

"We have several more days to go," said state Assembly Speaker Karen Bass, D-Los Angeles. "I think what's most important is the talks have not broken down.

"Lawmakers remained at odds over how to close the budget shortfall despite a consensus that severe spending cuts were inevitable. Schwarzenegger also wanted to seek out waste and abuse in welfare, in-home support and health care programs. The governor's office has said those reforms could save taxpayers roughly $1.7 billion this fiscal year.

"Over the weekend, lawmakers discussed some of those reforms, as well as proposals to consolidate state agencies to save money and generate revenue by selling state property.

"The biggest test will come in the next few days when lawmakers said they expect to make difficult decisions about cuts to education and welfare. The legislative leaders must also win the buy-in of their respective caucuses once a deal is struck.

And we know what you're asking yourself: What does California have that Alaska doesn't have? The answer, of course, is Sarah Palin. Michael Blood reports the soon-to-be-former Alaska governor is coming to the Golden State.

"Details of Sarah Palin's plans after she steps down as Alaska governor emerged Sunday after a California Republican group disclosed that the former vice presidential nominee is slated to appear at a private gala next month.

"Since announcing she plans to resign July 26, Palin hasn't made clear if she intends to return to private life after leaving office or will begin laying the foundation for a possible presidential bid in 2012.

"Republican Women Federated of Simi Valley said in a statement that Palin is scheduled to appear at the group's 50th anniversary gala at the Ronald Reagan Presidential Library on Aug. 8."

Mark your calendars...

Gene Maddus previews th 53rd Assembly District's Democratic primary, which is starting to feel like a bad episode of Melrose Place.

"First he took her furniture. Now he wants her seat.

Jim Aldinger, a former Manhattan Beach city councilman, is preparing to run against his ex-girlfriend, Betsy Butler, for the 53rd Assembly District next year.

(For those of you who may have forgotten Jim Aldinger, check out this 2005 Capitol Weekly story...)

"Aldinger and Butler parted on bad terms about seven years ago. He refused to relinquish some furniture that she'd had delivered to his house, and she had to sue him to retrieve it.

"In 2004, a judge ordered him to pay her $5,000.

"Both candidates say that episode is in the past and should not be relevant to the coming campaign. But their history together is likely to make the race somewhat awkward, at the least, and also raises questions about Aldinger's motives for running."

And finally, looks like the gay penguin saga in San Francisco has a new twist -- a femme fatale.

"Male penguins Harry and Pepper had been so content together they were allowed to incubate and hatch an egg laid by another Magellanic penguin last year, zookeeper Anthony Brown said.

""To be completely anthropomorphizing, Linda seems conniving," Brown said. "She's got her plan. I don't think she was wanting to be a single girl for too long."