Around the Nation

Fiscal Emergency Declared in California

SACRAMENTO -- California Gov. Arnold Schwarzenegger (R) declared a fiscal emergency Monday and called state lawmakers into a special session to address an $11.2 billion deficit.

California's revenue gap is expected to hit $28 billion over the next 19 months without bold action. The emergency declaration authorizes the governor and lawmakers to change the existing budget within the next 45 days.

Without quick action, the state is likely to run out of cash in February.

Schwarzenegger and Democrats have proposed a combination of tax increases and spending cuts, but Republican lawmakers are steadfast in their refusal to raise taxes. Democrats lack the two-thirds majority in either the Assembly or the Senate that is required to pass tax increases or a state budget without Republican assistance.

Birmingham Mayor Faces Corruption Counts

BIRMINGHAM, Ala. -- Larry Langford, the mayor of Alabama's largest city, was arrested on charges of steering millions of dollars in bond work to a friend in exchange for more than $230,000 in bribes that paid his debts for flashy clothes, jewelry and Rolex watches.

The bond deals -- which funded years of work on a substandard county sewer system -- went sour and have helped push surrounding Jefferson County to the brink of filing the largest municipal bankruptcy in U.S. history.

Federal prosecutors said Langford, Montgomery investment banker Bill Blount and lobbyist Al LaPierre were charged in a 101-count indictment. The charges also include conspiracy, money laundering and filing false tax returns.

Langford (D) has said for months that he expected to be indicted in what he referred to as a witch hunt by Republican prosecutors.

Jury Selection Starts In Safavian Retrial

Jury selection began in Washington on Monday in the retrial of a former White House aide linked to disgraced lobbyist Jack Abramoff.

David H. Safavian, the former top contracting official in the White House, was convicted in 2006 of obstructing justice and lying to investigators about Abramoff's inquiries into surplus federal property. He also was convicted of concealing facts about a charter jet flight and lavish golf junket to St. Andrews, Scotland, and London in the summer of 2002.

An appeals court tossed out Safavian's conviction in June. A grand jury indicted Safavian in October, accusing him of obstructing justice, lying on a financial disclosure form, and providing false statements about Abramoff and the golf trip.

Opening statements are scheduled for next Tuesday. The trial should last about nine days, U.S. District Judge Paul L. Friedman told potential jurors.

Hearing on Witness in Stevens Case Postponed

A federal judge postponed until next month a hearing into whether a witness received extensive help from prosecutors before taking the stand in the corruption trial of Sen. Ted Stevens (R-Alaska).

The witness, David Anderson, wrote to U.S. District Judge Emmet G. Sullivan on Nov. 15, alleging that he received extensive assistance from prosecutors before testifying. He also told the judge he lied when he testified that he did not have an immunity deal with prosecutors.

Stevens was convicted in October of lying on financial disclosure forms to hide $250,000 in gifts and free home renovations to his Alaska home. A "brief hearing" into Anderson's allegations, set to take place Monday, was rescheduled Friday for Jan. 15.

-- From Staff Reports and News Services