Starting today, I am introducing a new feature to the blog. Every Friday I will do a summary of the weeks political and policy events, which will be available in a 500 word column (picked up by as many newspapers as possible), as well as 2-minute radio version, which will be carried by as many stations as possible.

In the next few days, the website will be formatted to carry these as well. As always, your feedback is encouraged and welcome. Thank you.

This Week in Politics and Policy.

Every week we take a quick tour around the great State of California, highlighting what’s new in Sacramento and what’s happening around the state that affects you, your family and your business.

Since the gubernatorial race is shaping up to be an exciting and important one, let’s start there, with Governor Schwarzenegger continuing his march toward the political center.

After twice rejecting minimum wage increases in the past, the Governor agreed to a hike of $1.25 per hour, which by 2008 will bring California’s minimum wage to $8, well above the federal minimum of $5.15 per hour and much more than what the business community would like to have seen. The Governor’s move is being viewed as an acceptable bipartisan compromise.

The Governor also lent his support to a bipartisan effort to bring drug discounts to poor families. While not making any friends in the pharmaceutical community, Schwarzenegger again supported a compromise agreement that will provide discount drug cards to families earning less than three times the federal poverty level.

In another move that frustrates conservatives, the State GOP fired Lou Sheldon, spokesman for the Traditional Values Coalition – an evangelical advocacy group and the Governor’s only true outreach to the church community. The Governor also distanced himself from a troublesome union, withdrawing from the California Correctional Peace officers Association (prison guards) endorsement interview process.

On the Democratic side, State Treasurer and gubernatorial candidate Phil Angelides declared himself the underdog. It’s an unusual move, not because he trails the governor by a significant amount in the polls – which he does – but because registered Democrats outnumber registered Republicans 43 percent to 34 percent.

Angelides, who has been taking quite a bit of heat for his proposed tax increases (which he says will cost $5 billion and the Governor says will cost $18 billion) also announced a $1.4 billion tax cut.

Los Angeles continues to hold the title of being the nation’s least affordable housing market, followed in second place by Anaheim-Santa Ana-Irvine. Oxnard-Thousand Oaks also cracked the nation’s top 10 most expensive housing areas, but I don’t think you’ll see it in the next Chamber newsletter.

Los Angeles Mayor Antonio Villaraigosa continues to take stands surprising to many. When the Engineers and Architects Association went on strike earlier this week (they have since returned to work), the Mayor refused to support them – a surprise to many since unions gave him his start. The mayor continues his effort to take control of the Los Angeles Unified School District. While it’s far from a done deal, he continues to move forward and gain support.

That’s it for this week. Join me again next week as we continue to follow the never-ending story that is California politics. And remember, California is The Alpha State: the greatest state in the world’s greatest country.