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SACRAMENTO, Calif. (AP) -- Gov. Gavin Newsom for the first time is using his new powers to withhold money from two cities in California's Central Valley that are defying state health orders by allowing all businesses to open.The state is withholding nearly ,000 from Atwater and more than ,000 from Coalinga. It's just the first part of .5 billion that cities and counties risk losing if they don't toe the line on coronavirus safeguards.Atwater's mayor says the governor is abandoning the small city even as he devotes more resources and federal money to combat a virus surge in the Central Valley. 615

SACRAMENTO, Calif. (AP) — California will resume eviction and foreclosure proceedings on Sept. 1 unless the state Legislature agrees to extend the protections. The Judicial Council of California voted 19-1 to end the temporary rules that had been in place since April 6. State lawmakers are negotiating with Democratic Gov. Gavin Newsom on a proposal that would halt most evictions for the duration of the pandemic. But they have yet to reach a deal despite having five months to negotiate. California Chief Justice Tani G. Cantil-Sakauye on Thursday urged the Legislature and the governor to move quickly to “resolve this looming crisis.” 647

SACRAMENTO, Calif. (AP) — A peaceful protest in a sleepy suburb that’s home to the head of the California National Guard was among four demonstrations monitored by National Guard spy planes. That's according to a report by the Los Angeles Times. The four planes took to the skies over cities in June to monitor protests following the killing of George Floyd. Three watched demonstrations in Minneapolis, Phoenix and Washington, D.C. But the target of the fourth was the Sacramento, California, suburb of El Dorado Hills. Authorities have not explained how and why that neighborhood was chosen when other cities that had seen property destruction and street clashes were not.The head of the California National Guard, Maj. Gen. David S. Baldwin, lives in El Dorado Hills, according to the Times. Baldwin told the Times that he didn't recall whether he approved the mission and his residence had "nothing to do with" the deployment. 938

Rick Gates, the key prosecution witness in the tax and fraud trial of former Trump campaign chairman Paul Manafort, testified Monday he had committed crimes alongside and at the direction of his former partner -- and had also stolen from Manafort himself.In stunning testimony at Manafort's trial on tax and fraud charges, Gates stated he and Manafort had 15 foreign accounts they did not report to the federal government, and knew it was illegal. Gates said he did not submit the required forms "at Mr. Manafort's direction."Gates then admitted that he also turned the tables on Manafort -- cheating him out of "several hundred thousand" dollars by submitting false expense reports that were paid out of some of the undisclosed foreign bank accounts in Cyprus.The testimony from Gates, a former adviser to Donald Trump, comes after reaching a plea deal with special counsel Robert Mueller earlier this year to testify against his former partner in a lucrative international political consulting firm.Manafort stared directly at Gates as he read aloud the details of his plea agreement, which could see him receive a reduced sentence, at the direction of a prosecution lawyer.Gates did not make eye contact with Manafort as he took the stand wearing a yellow tie and navy blue suit.Prosecutors allege that Manafort financed a lavish lifestyle featuring sumptuous residences and extravagant wardrobes by using millions of dollars in profits that he hid from tax authorities then turned to bank fraud when his income started to dry up. Manafort has pleaded not guilty to all charges.  1595

SACRAMENTO, Calif. (AP) — California's economy has surpassed that of the United Kingdom to become the world's fifth largest, according to new federal data made public Friday.California's gross domestic product rose by 7 billion from 2016 to 2017, surpassing .7 trillion, the data said. Meanwhile, the UK's economic output slightly shrunk over that time when measured in U.S. dollars, due in part to exchange rate fluctuations.California's economic juggernaut is concentrated in coastal metropolises around San Francisco, San Jose, Los Angeles and San Diego.RELATED: California is #1 for fun in the nation"The non-coastal areas of CA have not generated nearly as much economic growth as the coastal areas," Lee Ohanian, an economics professor at University of California, Los Angeles and director of UCLA's Ettinger Family Program in Macroeconomic Research said in an email.The data demonstrate the sheer immensity of California's economy, home to nearly 40 million people, a thriving technology sector in Silicon Valley, the world's entertainment capital in Hollywood and the nation's salad bowl in the Central Valley agricultural heartland. It also reflects a substantial turnaround since the Great Recession.All economic sectors except agriculture contributed to California's higher GDP, said Irena Asmundson, chief economist at the California Department of Finance. Financial services and real estate led the pack at billion in growth, followed by the information sector, which includes many technology companies, at billion. Manufacturing was up billion.RELATED: California sues over plan to scrap car emission standardsCalifornia last had the world's fifth largest economy in 2002 but fell as low as 10th in 2012 following the Great Recession. Since then, the largest U.S. state has added 2 million jobs and grown its GDP by 0 billion.California's economic output is now surpassed only by the total GDP of the United States, China, Japan and Germany. The state has 12 percent of the U.S. population but contributed 16 percent of the country's job growth between 2012 and 2017. Its share of the national economy also grew from 12.8 percent to 14.2 percent over that five-year period, according to state economists.California's strong economic performance relative to other industrialized economies is driven by worker productivity, said Ohanian.The United Kingdom has 25 million more people than California but now has a smaller GDP, he said.The state calculates California's economic ranking as if it were a country by comparing state-level GDP from the Bureau of Economic Analysis at the U.S. Department of Commerce with global data from the International Monetary Fund. 2719