The nation's largest pension fund, the California Public Employees' Retirement System, said it is investigating fees paid to an outside manager that directed the fund's investments.

With emissions rules looking inevitable, companies are taking steps to prepare for a number of different  government  scenarios.

California's finances are in worse shape than expected three months into the fiscal year. State Controller John Chiang says income is nearly $1.1 billion below the most recent budget estimates.

Prosecutors said Thursday they will seek the death penalty for a California woman charged with kidnapping, raping and killing an 8-year-old girl whose body was found stuffed in a suitcase.

Six domestic violence shelters in California have closed while dozens more are scaling back services after the governor eliminated all state funding for the program that supports them.

Police in the Northern California city of Pittsburg say they have found no evidence to connect kidnapping suspect Phillip Garrido or his wife to several unsolved murders.

Three men expelled from Cambodia are facing charges in the U.S. as part of a crackdown on Americans who travel overseas to have sex with children, authorities said Monday.

Gov. Arnold Schwarzenegger is hoping that the "Great California Garage Sale" will turn government clutter like surplus prison uniforms and office furniture into cash to bulk up the state's depleted finances.

The decision came after meetings among state officials. They needed to review California's cash flow and assess investors' appetite for buying California bonds.

A man suspected of fatally shooting his ex-girlfriend and another person at the entrance to a busy San Francisco Bay toll bridge was arrested early Wednesday after an overnight manhunt.

Gov. Arnold Schwarzenegger on Tuesday is expected to use his line-item veto power to make additional cuts to California's latest spending plan—a move advocates fear could further hurt the poor.

Years of state and federal neglect have hobbled the nation’s unemployment system just as a brutal recession has doubled the number of jobless Americans seeking aid, the New York Times reported.

The deal to close California's $26 billion budget deficit included a plan to drill for offshore oil, drawing allegations that the fiscal crisis was used for a backroom deal following rejection of the idea by state regulators earlier this year.

A late rally pushed stocks higher Tuesday following better-than-expected earnings from several Dow components. The Dow logged its seventh-straight gain, the Nasdaq, it's tenth.

The Dow advanced Tuesday as a slew of components beat earnings expectations. But there were pockets of weakness throughout the market, including chips, hardware, banks and retail. The Nasdaq was lower.