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From the LA Times:

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Governor Lays Out Ambitious Agenda Certain to Draw Fire
In a combative speech, Schwarzenegger seeks spending caps, a revised state worker pension plan, teacher merit pay and cuts in bureaucracy.
http://www.latimes.com/news/local/la-me-speech6jan06,1,3561939.story?coll=la-headlines-california

Half-Cent Sales Tax Increase Proposed
Plan to boost the ranks of the LAPD would need just a majority vote to pass, councilman says.
http://www.latimes.com/news/local/la-me-tax6jan06,1,3532008.story?coll=la-headlines-california

Answers Sought in Boy's Death
A county supervisor and children's services officials hope to learn why a woman convicted of child abuse had custody of the infant.
http://www.latimes.com/news/local/la-me-baby6jan06,1,6140743.story?coll=la-headlines-california

PR Firm Ousts Former Chief in L.A.
Fleishman-Hillard cuts Doug Dowie from its payroll. The city has sued the company for what it calls improper billings of the DWP.
http://www.latimes.com/news/local/la-me-fleishman6jan06,1,3443641.story?coll=la-headlines-california

City May Launch a Fraud Squad
A panel approves creation of a new entity to ferret out waste and misdeeds in L.A. agencies. The full council's OK is needed.
http://www.latimes.com/news/local/la-me-fraud6jan06,1,5080724.story?coll=la-headlines-california

City Sues Travel Websites Over Tax
City Atty. Rocky Delgadillo has filed suit against online services that book hotel rooms, including Expedia and Hotwire, claiming they failed to pay the city as much as $10 million a year in taxes.
http://www.latimes.com/news/local/la-me-hotel6jan06,1,3044517.story?coll=la-headlines-california

County Board Sessions on Hospitals Urged
County Supervisor Mike Antonovich will ask board members Tuesday to hold special meetings four times a year to focus on hospital issues.
http://www.latimes.com/news/local/la-me-briefs6.2jan06,1,1137093.story?coll=la-headlines-california

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From the Daily News:

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Former Hahn aide running police-tax campaign
Fresh from a stint with the controversial Fleishman-Hillard public relations firm, a longtime political adviser to Mayor James Hahn has taken the lead in organizing the campaign to put a police tax measure on the May ballot.
http://www.dailynews.com/Stories/0,1413,200~20954~2637131,00.html

Repair crews hit streets in force
In the calm Wednesday before the next storm, work crews hit the roads to clear to repair damage from the last downpour in preparation for the coming one.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2636967,00.html

Candidates, minus Hahn, focus on Valley concerns
VALLEY GLEN -- The needs of the San Fernando Valley took center stage in a debate Wednesday among candidates seeking to be the next Los Angeles mayor in the March 8 election.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2637265,00.html

Fraud-busting unit backed
Council panel urges special section in Chick's office; Hahn softens opposition
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2637246,00.html

Supervisors take county seal down
Following a failed attempt to cover up the cross on two Los Angeles County seals, officials said Wednesday that the large emblems won't be displayed in the supervisors' downtown hearing room.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2637238,00.html

Plan to allow towing of cars in fire season
With the winter rains helping growth of brush in hillside areas, Los Angeles city officials on Wednesday looked ahead to potential problems during the brush fire season.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2637062,00.html

3 execs resign from P.R. firm
Three top executives of the politically connected public-relations firm Fleishman-Hillard that handled a scandal-plagued $3 million-a-year contract with the Los Angeles Department of Water and Power have left the company, officials said Wednesday.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2637179,00.html

Padilla proposes city vote on tax hike
City Council President Alex Padilla on Wednesday proposed skirting the two-thirds requirement for tax hikes by putting a measure on the May ballot to increase the city's sales tax by one-half percent without earmarking it for hiring police.
http://www.dailynews.com/Stories/0,1413,200%257E20954%257E2637041,00.html

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From other sources:

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From Attorney General Lockyer
Resolves Lawsuit Alleging Thousands of Gun Law Violations by California Wal-Mart Stores
Wal-Mart to Pay $14.5 Million for Fines, Compliance and Public Education
http://caag.state.ca.us/newsalerts/2005/05-001.htm