Here is the email sent this morning from Pat Clarey, the Governor’s former Chief of Staff, passing the reigns of her office:

Props go to William Bradley for e-mailing out the news a couple of hours before me. Ironically, I didn’t know it because I wasn’t on his email list. I am now. Perhaps, if you want to be in the loop, you should be… To get on it, email Bill. Bill gets all of the credit/blame if you do or don’t like what he says in his columns. But he gets an "A" for aggressive reporting.

Wall Street Journal Editorial Staff Writer John Fund has been a longtime friend of the FlashReport, back to the beginning of our e-newsletter in 2001. He’s been a personal friend of mine going back much further. John, a native Californian, keeps a remarkable finger on the pulse of California politics with a network of friends, operatives and contacts that would make many reporters who actually live in California quite envious. He has written two California stories today in the WSJ’s Political Diary (a subscription based publication, but John gave me permission to print these) — one on the Governor’s appointment today of Susan Kennedy, and the other most post-mortem on the Duke Cunningham debacle:

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Since the Congress went into recess after the November 18 battle royale over Rep. John Murtha’s Iraqi withdrawal resolution, Washington has been very quit. Until Monday of this week when Rep. Duke Cunningham, another Vietnam War veteran, announced his resignation and detailed his astonishing level of corruption.

The already competitive race for the 50th district got more interesting last week when Assemblyman Mark Wyland, who many believed to be an early favorite, dropped out, opting for an easy election to the state senate seat held by Bill Morrow. However, Cunningham’s announcement, which triggers an early spring special election, has given Wyland reason to reconsider. With his personal wealth, a compacted race would give him a significant advantage. Wyland is reconsidering but as of this writing, has yet to make up his mind. His district director, and likely campaign manager, Chip Englander, is leaving for Oklahoma to manage Congressman Ernest Istook’s campaign for governor.

Other competitors for the 50th are Senator Bill Morrow, former Congressman Brian Bilbray, former Assemblyman Howard Kaloogian, and… Read More

In this, his latest battle, Randy “Duke” Cunningham found himself surrounded by MIGs. They were not piloted by a foreign enemy this time, but by federal prosecutors from the nation he had first sworn to protect in the 1960s, and which in Vietnam he had done so with honor, distinction, and courage. In this battle, the United States Government, if not having superior firepower, certainly had overwhelming evidence against him.Randy Cunningham had no choice but to surrender.

I first met Cunningham in the late 1980s, after his retirement from the Navy and Top Gun.He was being touted as a potential candidate, and clearly had the credentials.He was speaking to some now forgotten group of Republicans, but I remember his story.It was the first of many times I heard it in the subsequent years.How, upon landing on an aircraft carrier after he and Willie Driscoll downed an enemy fighter, one of the deck crew ran up to him and exclaimed , “We… Read More

ARNOLD’S PICK FOR THE HIGH COURT The single most important decision facing Governor Schwarzenegger between now and the end of the year will be whom he choses to fill the vacancy on the California Supreme Court. Justice Janice Rogers-Brown, whom Schwarzenegger would be replacing, has been a well regarded judge with a reputation for being conservative. Ken Masugi, of the esteemed conservative think-tank, The Claremont Institute, penned an exclusive column for the FlashReport where he talks about what he thinks the Governor should be looking for in an appointee to California’s highest court. Don’t miss that exclusive column here.

BAD NEWS BONDS Yesterday in the FlashReport, Jon Coupal, President of the Howard Jarvis Taxpayers Association penned an exlcusive piece on the… Read More

The rule of six (if I hear at least six credible people tell me something, then as a confirmed rumor, I run with it) has struck again. I previously reported on rumors that Pat Clarey, the Governor’s Chief of Staff (and a loyal Republican) would be stepping aside after the special election. Read that story here.

Well, apparently the Governor has decided to name Susan Kennedy as his Chief of Staff.

I am sure that if this plays out, Kennedy will be vetted by many who know her well. I can only judge her political ideology based on her resume, which includes these highlights (seriously, I am NOT making this up):

Kennedy has spent nearly the last three years as Gray Davis’ appointee… Read More

John Howard of the Capitol Weekly has posted an article on Kennedy’s appointment, in which he reveals that Kennedy turned the Governor down on an initial ask, and then finally accepted after being given carte blanche authority over the hiring and firing of the senior staff.

The article begins:

Republican Gov. Arnold Schwarzenegger has hired Susan Kennedy, a top aide to former Gov. Gray Davis, as his new chief of staff, Capitol sources in both major parties said. The chief of staff’s position is considered the most powerful administrative position in state government, with broad authority over policy-making and the sprawling bureaucracy.

The decision was made following two days of intense, closed-door meetings that included negotiating sessions across the street from the Capitol in the Hyatt Regency Hotel, where Schwarzenegger stays while in Sacramento. Kennedy’s hiring was the culmination of a five-hour meeting, sources said, at which Kennedy demanded–and got–sole authority over hiring and firing the executive… Read More