Feinstein considers run for governor in 2010 -- California Sen. Dianne Feinstein, who has been forced to sit out this week's Democratic convention in Denver because of a broken ankle, acknowledged in an interview with The Chronicle on Thursday that she is actively considering running for governor in 2010.

Governor to GOP: Stop 'hiding -- As the state's budget crisis lumbered into its third month, Gov. Arnold Schwarzenegger on Thursday intensified the pressure on the one powerful group that has done little to end the standoff: legislators from his own party. In an interview with the Mercury News in his Capitol office, Schwarzenegger accused GOP politicians of "hiding" their ideas for deep spending cuts and borrowing to close California's massive deficit and suggested the reason is that the public would find their proposals "quite shocking."

Perata offers budget with sales tax hike -- The state Senate will vote today on a budget by Senate leader Don Perata that's similar to Gov. Arnold Schwarzenegger's latest spending plan for California that's 60 days late. But whether Perata will get two Republican votes needed in addition to unanimous support from Democrats to meet the two-thirds requirement in the Senate remains unclear. One significant issue is the Oakland Democrat's proposal to increase the sales tax by a penny per dollar for three years.

Prop. 11 backers file complaint against Perata, prison guards union -- Backers of an initiative to change the way California draws its political districts filed a complaint Thursday against Senate President Pro Tem Don Perata and the state correctional officers union charging that they violated state laws governing political contributions. Jeannine English, president of AARP California, filed a complaint with the Fair Political Practices Commission, arguing that the union inappropriately used Perata's political account as an intermediary to contribute $577,000 against Proposition 11.

Dan Walters: California's prison guards union, Indian tribes flex political clout -- One of the more significant developments in Capitol politics over the past two decades has been the evolution - from virtual obscurity - of the California Correctional Peace Officers Association and casino-owning Indian tribes into two very powerful interests. In both cases, the reason was quite simple - billions upon billions of dollars. And in the closing hours of the 2008 legislative session, the prison guards union and the casino tribes are using their clout to enhance their economic positions even more.