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In a nutshell, why this deserves a bump to your NationalID ping list:

A while back, the State of California signed a deal with Oracle to purchase $122.6 million worth of Oracle software. The contract was made without any bid process (which appears to be a violation of state law). The theory was that by making a large buy all at once, the State "could save money". Only problem is that no-one in state government actually seems to need this software; they still haven't figured out any application for it.
The deal was approved by Barry Keene, director of California's Department of General Services. He's a Davis appointee. He has resigned from his position.
Now it turns out that Oracle gave a check for $25,000 to a Davis aide named Arun Baheti, the state's director of e-government. Baheti has resigned from his position.
Note the timing: Oracle promised the contribution in April of 2001, and delivered the check on June 5, 2001, a couple of days after the contract was signed.
Oracle's Vice President of government affairs, Ken Glueck, says that it's all coincidence. There was no intent to buy influence with the contribution. He says he didn't even know about the contract. Ken Glueck has not resigned from his position.
Oracle is the company which wants to build a national database to support a national ID card that all residents of the US would be required to carry. Be very afraid.

Quoted summary of what is going on here from Steven Den Beste's wonderful website, U.S.S. Clueless.

In the end, if given enough attention, this might not only be enough to hurt Gray-out Davis, it might stick enough mud to Larry Ellison to make other Politcos back away from him on the NatID scene. </hope>