The Fourth of July is the day when the largest amount of beer is consumed across America. One Bay Area microbrewer talks about the process and the poetry of his craft.

For decades, parades and fireworks have been staple festivities for Independence Day. But the battered economy is taking the boom-dazzle out of many celebrations across California, as cash-strapped cities and civic groups pull back on their plans or cancel them altogether.

The state's new fiscal calendar started Tuesday, but there's still no agreement on how to close a massive budget deficit. Meanwhile, Governor Schwarzenegger has declared a financial emergency and the state is now issuing IOUs instead of making payments. Helping to make sense of it all is the California Report's Sacramento Bureau Chief, John Myers.

If you're itching to explore some local history, we've got a recommendation: a Sacramento restaurant just blocks from the Capitol. At the Pancake Circus, you'll find politicians lunching and people nursing hangovers on weekends. The restaurant opened nearly 40 years ago and not much has changed, including the clown decorations, which may or may not be political commentary. But there's more under the big top besides pancakes.

At many California high schools, the student body is a rich ethnic mix. But at some campuses, racial tensions shatter that mosaic. It was like that at one Los Angeles area school, until a high school senior helped put the pieces back together again.

The fourth of July is normally a busy travel weekend, but the economy is keeping many folks close to home. We talk to Liz Scott, author of "Moon's California" guidebook about some of the offbeat places Californians are discovering in their own backyards.

Last month, President Obama signed into law a billion dollar program to encourage car owners to trade in their old clunkers for a new, more fuel efficient models. Getting gas guzzlers off America's highways seems like it would be good for the environment, but will it mostly help automakers sell new cars? One clue can be found here in California, where we've had a similar program for a decade.

The California State University system has proposed furloughs for its workforce. Professors, administrators and Cal State staff are trying to figure out how they'd do 10 percent less work in an academic environment.

This afternoon, printing presses in Sacramento are scheduled to roll out State of California warrants -- promises to pay creditors in October for money the state owes now. It's happened only twice before since the Great Depression.

Starting today, fast-food and chain restaurants in California have to provide consumers with lists of the calories of the food they serve. It's the first phase of a process that will eventually have calories posted right on the menu.

The state's new budget year began at midnight with no new budget deal in place. The new fiscal year staggers forward, weighed down at the start by a deficit of more than $20 billion.