First Take: Budget deficit tops $25 billion. Democrats take leads in two undecided congressional races.

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The state is facing a budget deficit of more than $25 billion through the next budget year, according to the state legislative analyst. But George Skelton says there is some good news.

A series of reforms passed by voters in recent elections could improve the way Sacramento operates.

Steve Cooley is clinging to his narrow lead over Democrat Kamala Harris in the race for state attorney general.

Meanwhile, two Democratic congressional incumbents have taken leads in undecided California congressional races.

State Sen. Leland Yee took his first steps toward a run for San Francicso mayor on Wednesday, while state Sen. Alex Padilla hinted he may run for mayor of Los Angeles in 2013.

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