First Take: Meg Whitman modifies her pledge. Schwarzenegger wants water bond moved

Meg Whitman modified the "no new taxes" pledge she took during the primary campaign.

Seema Mehta reports that the Whitman campaign is aiming at rank-and-file union voters, hoping to drive a wedge between workers and their union leaders. 

Gov. Arnold Schwarzenegger asked lawmakers Tuesday to take the $11-billion water bond off the November ballot.

As this week's deadline to have a state budget in place approaches, Gov. Schwarzenegger will join governors from across the country Wednesday to ask the federal government for more Medicaid funds.

The largest state employee union will hold a rally at the Capitol on Wednesday as leaders begin talks with the Schwarzenegger administration over a new contract.

-- Anthony York

Get the latest from California politics as it happens. Follow PolitiCal on Twitter.