AUSTIN, Texas -- Republican governors wrapped up a two-day pep rally here on Thursday with an expression of confidence that the political winds have begun to shift in their direction, thanks to what they called a backlash among many voters against the policies of the Obama administration. (Also see: US: GOP officials urge candidates to avoid shrill tone )

WASHINGTON — The government watchdog overseeing the federal stimulus program testified Thursday that he could not vouch for the Obama administration's recent claims that the money had saved or created 640,000 jobs. He suggested that the administration should have treated the number with more skepticism.

BALTIMORE -- The mortgage crisis has worsened to the point that about one in every 10 prime borrowers in Maryland and nationwide -- homeowners judged to be good credit risks -- were behind on payments in September.

With the chants of protesters wafting into their meeting room and armed police standing guard, the University of California's Board of Regents approved a 32%, or $2,500, increase in undergraduate fees Thursday, but promised more financial aid to keep needy students from dropping out. (Also see: CA: California lawmakers, officials face 18% pay cut )

Rejecting a rare recommendation to commute a death sentence, Gov. Rick Perry refused Thursday to stop the execution of a man convicted of murder for his role in the 1996 shooting death of a Houston convenience store clerk. Less than an hour later, Robert Lee Thompson, 34, was executed at a state prison in Huntsville.

A 7.7-magnitude earthquake strikes the New Madrid seismic zone on the Kentucky-Missouri border. Communications go offline, highways are severely damaged, and there is not enough shelter space to house those displaced by the quake.

LINCOLN, Neb. — In an unusual pushback against President Obama's expansion of federal financing of human embryonic stem cell research, the University of Nebraska is considering restricting its stem cell experiments to cell lines approved by President George W. Bush.

Former New York City Mayor Rudolph Giuliani is not planning to run for governor next year after spending months considering whether to seek the seat, Republican officials said Thursday.

ATLANTIC CITY, N.J. — In a vivid contrast of their styles and standing, a soft-spoken Gov. Jon S. Corzine delivered a choked-up goodbye here Thursday while Governor-elect Christopher J. Christie vowed to "force change" on New Jersey even if it meant dragging his adversaries to the table.

The Massachusetts unemployment rate dropped last month for the first time in two years, and job losses slowed - signs the state's beleaguered job market may be stabilizing.

For the first time in nearly three years, Rhode Island's unemployment rate dropped, to 12.9 percent in October, offering a faint but reassuring sign that the state's economy may be on the road to improvement.

Tax increases probably can't be avoided as the state tries to patch a budget deficit that's ballooned to about $2.6 billion, top Democratic lawmakers said Thursday.

PORTSMOUTH, Va. -- Local governments aren't likely to escape the pain when the General Assembly attempts to eliminate an estimated $3.5 billion hole in the next two-year budget.

Gov. Dave Heineman called 49 senators to Lincoln 2 1/2 weeks ago to find a solution to a budget crisis. He met with the Appropriations Committee and other key committee chairs Nov. 2, and held briefings with others, to outline his proposal to cut the two-year budget to fill a gap in revenue. Then, according to a few senators, he more or less disappeared.

Legislators will spend one more day in special session, after House Republicans blocked a passage vote Thursday on a bill (SB4004) to freeze the state's gasoline tax at the current 32.2 cents a gallon.

In a case that mirrors a Rochester-area decision, the state's top court on Thursday upheld the rights of Westchester County and the state to legally extend benefits to same-sex couples married in other states.

The longtime secretary for one of the most powerful politicians in New York spent as much time on his private business, handling bills and correspondence, as she did on his public duties, like arranging meetings with lawmakers.

A new tobacco tax is doing just what its proponents envisioned -- reducing cigarette sales while fattening state coffers.

Those promoting Thursday's Great American Smokeout 2009 have their work cut out for them. That's because cigarette use among Americans, after declining for decades, has remained virtually unchanged for five straight years, according to the Centers for Disease Control and Prevention (CDC).

In its new report “Beyond California: States in Fiscal Peril,” the Pew Center on the States shows that some of the same pressures that have pushed California toward economic disaster are wreaking havoc in a number of other states, with potentially damaging consequences for the entire country. Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin join California as the 10 states highlighted by Pew’s analysis.