The Note

immediately halt the verification process. LINK "The lawsuit seeks an injunction stopping Shelley from taking any action on the recall, including certifying it for the ballot, until county elections officials verify that the people circulating recall petitions were registered California voters. "

"It also asks that elections officials in the state's three most-populous counties stop verifying signatures until they check the status of signature collectors and ensure that the collectors witnessed the signatures."

After the state senate's Republican budget plan was voted down yesterday, party leaders headed back to the negotiating table. and LINK

Governor Davis is planning on making a "major statement" regarding the state budget in Sacramento at 4:30 pm EDT.

The economy:

The AP's Alan Fram writes, "The dreary numbers set Republicans and Democrats at each other's political throats over an issue the public has largely ignored in recent years — even as massive projected surpluses have melted into deep deficits in the budget's starkest, most abrupt turnabout ever." LINK USA Today 's Sue Kirchhoff writes, "In unusually blunt testimony to the House Financial Services Committee, [Chairman Greenspan] said that the economy appears poised for accelerated growth, making it unlikely the Fed would have to take dramatic action to ward off a possible destructive cycle of falling prices." LINK The AP's Maura Kelly reports, "The national Democratic Governors' Association on Tuesday criticized the Bush administration's economic policy, saying tax breaks alone won't improve the economy." LINK

The Clintons of Chappaqua:

"The government will pay a small portion of the legal fees accumulated by former President Clinton and Senator Hillary Rodham Clinton during the independent counsel investigation of their failed Arkansas land deal, an appeals court ruled Tuesday," the Associated Press reports. LINK Clinton attorney David Kendall: "'The facts and the numbers speak for themselves. The good news is that the partisan Whitewater smoke-and-mirrors investigation is finally over,' Kendall said."

Bush Administration strategy/personality:

The AP's Deb Reichmann reports on Mr. McClellan's first day. LINK "'I think it's been a fairly busy, somewhat routine day,' he said, summing up his first day."

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