THE POLITICAL LANDSCAPE:

Former Newport Beach Mayor Steve Rosansky turned his chair over to successor Ed Selich Tuesday night and called the rehabilitation home debacle that has dogged him in recent months “one of the thorniest issues our town has ever faced.”

Rehab home activists who have continually accused Rosansky of having a monetary interest in the rehabilitation industry in Newport Beach over the past months were noticeably silent on the matter Tuesday, instead focusing their energy on a proposed ordinance to curb the spread of rehab homes. The activists say the new rules aren’t strict enough to get rid of what they see as an over-concentration of homes in the community.

Rosansky waxed lyrically over what he viewed as his greatest achievements as mayor, including brokering a $43-million development agreement with the Irvine Co. and the construction of a new Fire Station in Santa Ana Heights.

“It’s been a great year as mayor,” Rosansky said. “What’s the most difficult thing about being the mayor of Newport Beach is not satisfying the needs, it’s satisfying the wants.”

Selich has his job cut out for him. The new mayor inherits a city divided over where to build the next city hall, and the heated debate over rehab homes.

“Move over, son,” Rosansky said to Selich as he gave up his chair.

WHO’S ENDORSING WHOM?

Many local officials are dragging their feet on picking a presidential candidate to pin their hopes on.

County Supervisor John Moorlach said he’s still isn’t “signing any postcards” for a presidential hopeful, but he’s “leaning toward” former Arkansas Gov. Mike Huckabee.

“Ideologically, he’s the closest candidate to me,” said Moorlach, who was seen at a Huckabee fundraiser earlier this year at the home of big Newport GOP donor Buck Johns.

Newport Beach Councilman Steve Rosansky announced his endorsement for former New York City Mayor Rudy Giuliani last month, and Councilman Keith Curry said he is lending his support to former Massachusetts Gov. Mitt Romney. Councilman Don Webb said he has made it a matter of practice not to endorse anyone or anything, except a few local issues. He also likes to keep his vote between him and the ballot box.

Newport Beach Council members Nancy Gardner, Michael Henn, Leslie Daigle and Mayor Ed Selich did not respond to the question.

As for Costa Mesa, aside from Mayor Allan Mansoor, who endorsed Ron Paul last week, and Linda Dixon, who did not return our calls for comment — all council members declined to declare their allegiance to any candidate.

“For the present, I am undecided and studying the positions of all the Republican candidates for president,” Councilwoman Wendy Leece said. “The candidates’ integrity, support of family values, [along with a] strong stand to oppose illegal immigration and any tax increases are very important in my decision.”

AN ARTISTIC EYE

Moorlach has decked out his office with about $5,000 worth of California landscape prints on loan from the Irvine Museum. The 11 plein air prints depict sun-drenched scenes ranging from Saddleback Mountain to Crystal Cove.

“It doesn’t cost the taxpayers a cent except for the people in my office to hang them and keep them off the floor,” Moorlach said.

An art admirer and who “loves anything Californian,” Moorlach made a list of his favorite paintings from the museum, expecting to get one or two on loan, but all 11 of the prints showed up at his office shortly before Thanksgiving. Moorlach’s mini-museum will be on display at his office for the next year.

ONLY HALF THE STORY

The magnitude of the dreaded state budget deficit just got a whole lot worse.

A report in the Sacramento Bee on Wednesday cited unnamed sources within Gov. Schwarzenegger’s office who estimate the deficit is nearly 50% more than public projections — somewhere about $14 billion. Public predictions initially estimated the deficit at about $8 billion, the state Department of Finance’s Deputy Director for External Affairs H.D. Palmer said, attributing the gap to a broader set of data used by his office.

“We get more economic data at the time we do our forecasting than other analysts do,” he said. “We get six weeks of additional data in the park.”

Palmer attributed the deficit to a number of factors, including costs associated with the Southern California wildfires, lower-than-projected cash receipts, and troubles in the national housing market.

While declining to comment on specifics, Palmer said the governor will address the problem with Californians after reviewing the situation with legislators and agency heads.

“We will try to do our best to spread that [deficit] as broadly as possible across state government, because this is an issue that is affecting all state government,” he said.

Whether these new figures will affect pay raises for the elected officials administering the budget has yet to be seen.

BRIANNA BAILEY may be reached at (714) 966-4625 or at brianna.bailey@latimes.com. CHRIS CAESAR may be reached at (714) 966-4626 or at chris.caesar@latimes.com.