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MONDAY OCTOBER 4, 2010 Breaking news at: Exercise the Best Medicine Vitality www.redbluffdailynews.com See Page 4A RED BLUFF Torture Ends SPORTS 1B Partly Cloudy 77/52 Weather forecast 8B DAILYNEWS TEHAMACOUNTY DAILY 50¢ T H E V O I C E O F T E H A M A C O U N T Y S I N C E 1 8 8 5 Monster bash Sheriff probes Lake California embezzlement By GEOFF JOHNSON DN Staff Writer The Tehama County Sheriff’s Department is investi- gating an $80,000 embezzlement at Lake California. Multiple former employees of the Lake California Property Owners Association are suspects in the inves- tigation, according to the “Manager’s Report” in the October edition of the community newsletter released this week. Manager Jesse Liebert made the announcement in response to a series of criticisms targeting the Board of Directors and association management for not being “transparent” in their communications, according to the newsletter. Details have been kept confidential on the advice of attorneys. Described as a series of “irregularities in cash deposits,” Liebert said the missing money, first noticed during an internal audit, disappeared somewhere between January 2006 and June 2007. A separate investigation by the association’s insur- ance agency is nearly complete and may result in the association’s claim being approved, according to the newsletter. Daily News photo by Chip Thompson Maximum Destruction takes a semi-final win Sunday afternoon at the West Coast Monster Trucks Nationals at the Tehama District fairground.The event sold out Saturday night thanks in part to the addition of Gravedigger, Maximum Destruction and a motorcycle freestyle jumping exhibition. Gov, legislative leaders reach budget deal SACRAMENTO (AP) — Gov. Arnold Schwarzenegger and leg- islative leaders said they struck a comprehensive agreement after an inten- sive five-hour meeting Friday night, signaling an end to California’s record-long budget stale- mate after 93 days. No details were released on how the state plans to bridge a $19 bil- lion deficit, as legislative leaders left the governor’s office in the Capitol. However, Assembly Minority Leader Martin Garrick, R-Solana Beach, indicated Republicans were successful in their quest to ward off tax increases. ‘‘Legislative leaders and the governor have finally reached an agree- ment on a no-tax budget that protects California jobs,’’ Garrick said in a statement. Democratic Senate President Pro Tem Darrell Steinberg of Sacramento said details of the budget would be released during a public hearing Wednes- day. A vote on the compro- mise plan brokered between the Republican governor and Senate and Assembly leaders of both parties could come as early as Thursday. Leg- islative staff will work on drafting budget language in the coming days. ‘‘Everyone has worked very, very hard. These are very difficult circum- stances in difficult times, not a lot of celebrating, but we all stepped up and did the work we had to do,’’ Steinberg said. Senate Minority Leader Dennis Hollingsworth of Murri- eta said he expected enough support among Republicans to pass the budget on a two-thirds vote. Schwarzenegger did not come out to address reporters on the last bud- get he will negotiate. His spokesman Aaron McLear declined to give details but noted the gov- ernor has demanded pen- sion and other budgetary reforms all along. The governor, who will be termed out next year, has been seeking a stronger rainy day fund throughout his tenure. ‘‘He will not sign a budget that increases taxes,’’ McLear said. ‘‘He still feels exactly the same way.’’ This year marks the longest the state has ever gone beyond the July 1 start of its fiscal year without an approved spending plan. The $19 billion gap represents more than 22 percent of the state’s $84.5 billion budget last year. Throughout the impasse, pension reform has remained one of the biggest sticking points. Schwarzenegger wants the Legislature to roll back public employee benefits, while Democrat- ic lawmakers say the administration should work to reach an agree- ment with unions through collective bargaining. The leaders also have disagreed on how to raise money, with Republicans refusing to make conces- sions on taxes or increased fees, and Democrats calling for a 7 5 8 5 5 1 6 9 0 0 1 9 See DEAL, page 7A In the meantime Liebert said she will be conducting a pre-2006 audit and, while not triggered by the sus- pected embezzlement, the association has taken addi- tional precautions. Since October 2007, the association has divided accounts payable and funds received so no one person has access to both. “While there can never be a guarantee, these safe- guards should reduce the likelihood of an embezzle- ment in the future,” Liebert wrote. See SHERIFF, page 7A Salvation Army serves a full house Daily News photo by Chip Thompson Volunteers prepare salads and soup for some 220 guests Saturday evening at the Salvation Army's annual Kettle Kickoff Dinner at Red Bluff's Veterans Hall. Pictured, from left, are Rolling HIlls Casino sous chef Ron Hafey and volunteers Juan Estrada, Kathy Smith and Rick Smith. The fundraiser initiates the Salvation Army's kettle donation program leading into the holiday season. Local Democrats open headquarters Tehama County Democrats opened their headquarters Sunday and were greeted by numer- ous people seeking infor- mation and the opportu- nity to meet candidates. Jim Reed, running for Congressional District #2, was there as were Daniele Jackson, running for Red Bluff City Coun- cil, and Gary Strack, run- ning for Corning mayor. The headquarters are located at the South cor- ner of Washington and Walnut streets in Red Bluff, and will be open from 11 a.m. to 6 p.m., Monday through Satur- day until Nov. 3. Forms are available for voter registration, and to apply for an absentee ballot. There is literature Courtesy photo Democratic Party Headquarters Grand Opening Sunday. Pictured, right to left, Daniele Jackson, running for Red Bluff City Council, Gary Strack, running for Corning Mayor, Sue Gallagher, Tehama County Democratic Council Chairperson, Jim Reed, District #2 Congressional Challenger. regarding candidates and all of the propositions. Volunteers are more than welcome and may call 384-2945 for more information. Daily News Saturday print delivery will be late due to football coverage …but now you can read the Saturday paper online after 8:00 am Saturday mornings www.redbluffdailynews.com Click on Digital Edition