California's debt is shrinking, for now, thanks to voters who approved a tax hike and a growing economy.

Six years after enacting its own law to fight global warming, California conducts its first auction of carbon permits. Companies that give off large amounts of carbon dioxide will need permits to cover the emissions.

A ballot initiative in Richmond and El Monte proposes a tax on sugar-sweetened drinks. Proponents say it could help prevent diabetes among low-income residents and generate revenue, but the soft drink industry is spending millions to block it.

Last year's months-long Pacific Standard Time arts event brought almost two million visitors to the city and pumped $280 million into Southern California.