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. . . San Francisco and Houston are North America’s “emerging” global cities. They are also rival representative champions and exemplars of two models of civic development. San Francisco is the world’s technology capital; focused on the highest levels of the economic food chain; paragon of the new, intangible economy; and promoter environmental values and compact development.  Houston is the closest thing to American laissez-faire; unabashed embracer of the old economy of tangible stuff, including unfashionable, but highly profitable, industries like oil, chemicals, and shipping.

On-location production in feature films and TV dramas in L.A. has dropped significantly due to increasing competition from other states and countries, according to a report released Tuesday.

The National Federation of Independent Business’ monthly index of small business indicators gained 1.4 points in December to hit 93.9. That’s back to where it was this summer, but 6 points below the pre-recession average, according to NFIB.

Gov. Jerry Brown said Monday his administration would soon declare that California is officially in the midst of a drought.

Mickelson still lives in California, but other wealthy people say they have moved out mainly or partly because of skyrocketing tax rates. Whether you sympathize or not, millionaires’ migrating out of California has serious consequences to the state’s bottom line and is something state leaders are watching closely.

Gov. Brown summarily rejected the notion of a per-barrel tax on California oil as it comes from the ground, a move that sharply limits the political options of the tax’s backers who hoped to get a bill through the Legislature to raise perhaps $2 billion annually.

The governor pegs the total 2014-15 budget of the general fund, special funds and bond funds at $154.9 billion, but the real number is well over $200 billion, when federal funds are included. That’s the equivalent of more than 10 percent of California’s entire economic output.

Brown, citing an ever-increasing dependence on taxes from highly volatile capital gains, said he, too, would resist pressures to ramp up permanent spending and wants to divert much new revenue into paying down debt and building up reserves to cushion future downturns.

California’s two top legislative leaders — both Democrats — have their eyes on 2014 as California faces big challenges in continuing to improve the state’s still underperforming economy.

The U.S. Bureau of Reclamation plans to reduce flows in the river from the current 1,100 cubic feet per second to 800 cfs starting tonight, then in stages each night afterward until flows reach just 500 cfs on Friday, said Tom Gohring, executive director of the Sacramento Water Forum.

The City of Calistoga has pumped the last drop of drinking water it can from its main reservoir. No rain this winter would mean no water at all from behind the Kimball Dam next summer.

The sinuous Colorado River and its slew of man-made reservoirs from the Rockies to southern Arizona are being sapped by 14 years of drought nearly unrivaled in 1,250 years.

The first statewide survey of the season Friday will find little snow in the Sierra, sending an ominous warning that California may be headed into a third straight dry year and intensifying pressure to break the political stalemate over rebuilding the state’s antiquated water storage and delivery network.

PG&E said the increase is due to rate changes, effective Wednesday, to pay for higher wholesale energy purchase costs and for work to maintain and modernize the utility’s infrastructure.

The Federal Aviation Administration announced the selection of sites in Alaska, Nevada, New York, North Dakota, Texas and Virginia.