The Sacramento Bee from Sacramento, California • A1

OUTPUT: 23:39 USER: JLUCERO MASTER 10-12-10 BLACKYELLOWCYANMAGENTA INSIDE Business B6 Classifieds D8 Comics D6 CrosswordsD6 Horoscope D2 Jumble D7 Living Here D1 Lottery B2 Obituaries B4 Movies D5 Sports C1 Television D2 THESACRAMENTOBEE By Benedict Carey New York Times Whatever else it holds, this new year is sure to produce a healthy serving of redemp- tion stories, against-the-odds tales of people who bounced back from the layoffs, foreclo- sures and other wreckage of 2010. They landed better jobs. They started successful com- panies. They found time to study new pursuits, to learn a new trade: to generate just the sort of commentary about perseverance, self-respect and character that can tempt any- one still struggling to throw things at the TV. When people are truly sink- ing, because of job loss, ill- ness, debt or some combina- tion of ills, they have no idea whatmixof character, connec- tions and dumb luck will be enough to pull through.

They know how resilient they are, or how much resilience even matters. somanyof ex- periences, humans are simply not very good at predicting how behave when hit by a real said Laura King, a psychologist at the University of Missouri. RESILIENCE Page A12 OUR REGION A murder by the father equated to a manslaugh- ter by the son in a jury verdict returned Monday in a shooting death instigated by a dirty look. B1 Four killings over the long New weekend in the Sacramento area got 2011 off to a bloody start. B1 CAPITOL CALIFORNIA Kamala Harris is sworn in as attorney general while Dave Jones takes the oath of office for insurance commissioner.

A3, A4 The NTSB calls for gas pipeline scrutiny in the wake of last explo- sion in San Bruno that killed eight people.A4 NATION Surgeons writing articles and doing research for a medical-device maker got big royalty payments from the company. A5 Scientists say New fireworks may have caused thousands of dead blackbirds to fall from the sky and onto the streets of a small Arkan- sas town. A5 WORLD Chinese scientists mas- ter the technology to reprocess nuclear fuel, boosting the potential supply of power. A8 Australian floods prompt fears not only of drown- ing, but also contact with snakes and crocodiles. A8 BUSINESS Facebook gets a $500 million infusion, mostly from Goldman Sachs, giving it muscle without going public.

B6 SPORTS Andrew Luck leads Stan- ford to a 40-12 victory in the Orange Bowl over Virginia Tech for the first BCS bowl win in school history. C1 By Kevin Yamamura Gov. Jerry Brown will spare K-12 schools from further drastic cuts in his budget so long as voters extend higher incometaxes inaspecial elec- tion, according to sources familiar with his proposal. The tradeoff cure educa- tion ills, and many districts would still face another year of fewer school days and larger class sizes. But it could avert even deeper cuts after years of school rollbacks and help Brown galvanize powerful edu- cation support for tax hikes in a June special election.

something like that happens, going to be looking for the feet to be said Kevin Gordon, a veteran education lobbyist, of the Brown education proposal. big question is, what will the voters do, and if voters come through, will we go through incredible anxi- ety all over Brown does not plan to suspend Proposition 98, the mini- mum guarantee for K-12 and com- munity college funding, though he may seek to do so if the tax hike ex- tensions pass. Withoutany increase instatereve- nue, K-12 schools and community colleges stand to lose more than $2 billion in funding in 2011-12 roughly 4 percent because tax rates are scheduled to decline this year, according to the nonpartisan Legislative Office. Several school officials asked Brown at his Los Angeles forum on Dec. 10 to raise taxes to avoid further cuts to education.

Absent those taxes, the office projects 2011-12 to be the worst year for schools in the current slump. Thereafter, schools stand to BUDGET Page A12 Bill Walton discusses what ails the Kings SPORTS Page C1 NUNEZ CLEMENCY STIRS ANGER Former Gov. Arnold decision to reduce the prison sen- tence of Esteban a former Assembly son, sparked outrage on all sides Monday. A3 By David Siders Jerry Brown, returning to the gover- office after 28 years, skipped church, nibbled on a hot dog and the weight of many hardships notwithstanding swore he has, in fact, no mental reservation about taking the job. Brown said while taking the oath of office Monday.

any mental The audience laughed and cheered, and Brown was sworn in as 39th governor, beginning a historic third term. The 72-year-old Democrat, confront- inga massive budget deficit andan elec- toratehighlycynical about stategovern- ment, said in his inaugural address that he will propose a budget for tough when he releases his spending plan next week. year ahead will demand cour- age and he said. How Brown manages to negotiate a BROWN Page A7 Governor sees a year of courage, sacrifice MORE COVERAGE Dan Walters: Inaugu- ral address hits the right tone. Page A3 Excerpts and reac- tion.

Page A6 JERRY BROWN: INAUGURATION 2011 Get news updates, plus photo and video galleries. sacbee.com/jerrybrown CAPITOL ALERT Get breaking news during the first days of the Brown administration. blogs.sacbee.com/ capitolalertlatest By Diana Lambert Students have become a hot com- modity. Educators talkuptheir schooldis- tricts in glossy brochures, radio spots, television commercials and newspaper advertisements. They hold coffee klatches and recruit- ment nights touting new programs and popular mainstays.

Their goal: Retain their students and lure new ones and the precious state funds that come with them. School districts, already strug- glingafteryears of state budgetcuts, also face declining enrollment brought on by a stagnant economy and the increased movement of stu- dents to charter schools. This double-whammy has educa- tors scurrying to sell families on their districts and to make program changes that will attract students. we continue to see declines and we continue to see cuts, going to have to take drastic mea- saidStephenNichols, spokes- man for the Folsom Cordova Uni- fied School District. Most districts above a little poaching.

Folsom Cordova Unified will launch a media blitz Jan. 17 to cast a broad net for students, Nichols said. MARKETING Back page, A12 A few woes in life may strengthen the psyche TOP STORIES THE INAUGURATION OF JERRY BROWN Why Californians will soon save more energy BUSINESS Page B6 Hector Amezcua Gov. Jerry Brown and first lady Anne Gust Brown leave Memorial Hall after his swearing-in. During an inaugural that combined austere talk on budget pain to come with musings about following in his footsteps and his own, Brown called on to lead the state to recovery once again.

Plan ties school funding to tax OK Education lobbyist Kevin Gordon fears another year of credible over budget cuts if voters come through. School districts try ads to stimulate enrollment we continue to see declines and we continue to see cuts, going to have to take drastic STEPHEN NICHOLS, spokesman for the Folsom Cordova Unified School District THE BUDGET EDUCATION MENTAL HEALTH Patchy fog, clouds 52 31 Complete forecast Page B8 Tuesday, January 4, 2011 VOLUME 299, NO. 4.