PART THREE OF THREE: At a desperate fiscal moment, California's state legislators and city officials are barely on speaking terms. Governor Jerry Brown lacks the power to bring the feuding factions into line. more

TODAY'S TAKE: Governors are placing a premium on economic development, moving aggressively to lure more private-sector jobs to their states. The public, however, often is kept in the dark about the state tax breaks, grants and other incentives that are often at the center of such deals, according to a new study. more

TRANSITION WATCH: Kris Steele's focus on economic issues angers some right-leaning Oklahoma Republicans, Connecticut's new governor is likely to dictate the fate of tens of millions of state e-mails, and other news of the historic shift in power in the states. more

A program called work sharing is helping thousands of companies avoid layoffs by cutting workers' hours and making up some of the lost wages with state unemployment benefits. At no additional cost to states, work sharing helps businesses retain skilled employees, allows workers to stay on the job and keep their benefits and boosts the local economy. So far, only 17 states offer the job-saving program, but at least seven more states legislatures are considering bills to provide the widely praised unemployment insurance option. Congress may give states another reason to try the program -- federal incentive funds. more