Update on the latest news, sports, business and entertainment:

HELICOPTER CRASH Official: 4 killed in Maryland helicopter crash

SMITHSBURG, Md. (AP) Emergency officials in Maryland say all four people aboard a commercial helicopter were killed when the copter crashed onto a highway and burst into flames.

The aircraft was engulfed when firefighters arrived at the scene Thursday night. No vehicles on the highway were hit when the helicopter crashed in the eastbound lanes of Interstate 70 in western Maryland.

It wasn't immediately clear what brought down the helicopter, which was described as a Robison R44, a four-seat commercial craft.

California BUDGET UPDATE: Senate, Assembly both pass first bill

SACRAMENTO, Calif. (AP) The California Legislature has taken the first step toward approving a massive legislative package designed to close the state's $26 billion deficit.

The state Senate and the Assembly passed a bill that cuts higher education funding, college grants, health programs, welfare, in-home supportive services and state prisons.

It was the first of 31 bills that, if passed by both houses of the Legislature and signed by the governor, would close the state's budget shortfall through June 2010.

The budget-balancing compromise was struck earlier this week by Gov. Arnold Schwarzenegger and the Republican and Democratic leaders of each legislative chamber.

The plan before the 80-member Assembly and 40-member Senate eliminates nearly 60 percent of a projected $26 billion deficit with spending cuts.

OBAMA Obama says Senate delay in health care bill is 'OK'

SHAKER HEIGHTS, Ohio (AP) President Barack Obama is acknowledging the Senate won't make his deadline for a vote on overhauling health care, and he says, "That's OK." Speaking in a Cleveland suburb on Thursday, Obama said, "I just want people to keep on working." The president says he wants the plan to keep moving forward despite the delay. He says change cannot come quickly enough. He says Washington has delayed action far too long and he wants to sign health care legislation into law by the end of the year.

Obama had hoped the House and Senate would pass separate legislation before leaving on an August recess. The Senate's top Democrat, however, said earlier on Thursday that his chamber would not meet the White House's goal.

DEFENSE SPENDING UPDATE: Senate sides with Obama, defunds jet engine

WASHINGTON (AP) The Senate has passed a $680 billion defense spending bill just hours after eliminating a jet engine program the defense secretary believes is superfluous.

The voice vote eliminated funds for a backup engine for the F-35 next-generation fighter plane. The overall defense bill passed 87-7.

Just two days ago, the Senate went along with Defense Secretary Robert Gates' campaign to change the way the Pentagon buys weapons by stripping from the bill $1.75 billion to produce more F-22 fighters.

The high-tech aircraft eventually will be supplanted by the F-35 as the military's main attack plane.

Differences in the House and senate versions of the bill still need to be worked out.

CONGRESS-SPENDING House passes increase for housing, high-speed rail

WASHINGTON (AP) The Democratic-dominated House has approved a $123-billion transportation and housing bill that includes additional money for the president's high-speed rail initiative.

The bill, approved 256-168, includes generous funding for housing subsidies for the poor and $4 billion more for President Barack Obama's rail plan. He had only requested an additional $1 billion for the initiative, which was launched in February with an $8 billion infusion from the economic stimulus bill.

Massachusetts Democrat John Olver, the main author of the bill, says the earlier $8 billion appropriation has generated a "huge demand" of more than $100 billion for projects in more than 40 states.

Iowa Republican Tom Latham warns that the program could easily spiral out of control.

OBAMA-SCHOOLS States to compete for extra stimulus dollars

WASHINGTON (AP) States and school districts will soon be able to compete for $5 billion in economic stimulus money to enact school reforms sought by President Barack Obama.

The $5 billion fund is Obama's big shot at overhauling schools over the next couple of years.

Obama and his education secretary, Arne Duncan, plan to lay out how states can win the money Friday at the Education Department.

The president will use the money to prod states to toughen academic standards and find better ways to recruit and keep effective teachers. To get the money, states will also need to be able to track student performance, and they will need a plan of action to turn around failing schools.

MICHAEL JACKSON-DOCTOR Manslaughter investigation targets Jackson doctor

LOS ANGELES (AP) A Houston search warrant is confirming that Michael Jackson's personal doctor is the target of the manslaughter investigation into the singer's death.

A receipt for the search warrant detailed items seized when federal drug agents and Los Angeles police descended on Dr. Conrad Murray 's clinic Wednesday.

The include a weight loss drug, a muscle relaxant, two hard drives, notices from the IRS and a controlled substance registration. A second search warrant, also executed Wednesday, targeted a storage locker Murray rented.

The cardiologist, was hired as Jackson's personal physician not long before he died. He was in Jackson's rented Los Angeles mansion when the pop star was found unconscious the morning of June 25 and tried unsuccessfully to revive him.

Jackson had a long history of prescription drug use.

TOLL LANES Life in LA's fast lane: $1.40 a mile at rush hour

LOS ANGELES (AP) Solo commuters looking for a faster drive through Los Angeles during rush hour will have the option of using toll lanes late next year for a fee.

Members of the Metropolitan Transportation Authority board approved rates, ranging from 25 cents to $1.40 per mile, on Thursday for portions of Interstate 10 and state Highway 110.

The MTA and the California Department of Transportation will convert existing carpool lanes on those two freeways to toll lanes.

Carpoolers won't be charged. Solo drivers will be allowed to use the lanes if they pay the toll, with rates varying depending on traffic levels. When congestion is heavy, the rate will be higher; when demand is low, they'll pay less.

The MTA says the lanes will open December 2010.

CHILDREN-SEX ASSAULT UPDATE: 4 boys charged in Phoenix in girl's sex assault; girl shunned by family

PHOENIX (AP) An eight-year-old rape victim is in the care of Child Protective Services in Arizona after being shunned by her parents, who say she brought shame on the family.

Authorities say four boys ages 9 to 14 took turns raping the girl behind a shed after luring the young victim with chewing gum.

Police Sgt. Andy Hill says the father "told the case worker and an officer in the girl's presence that he didn't want her back." The 14-year-old boy has been charged as an adult with two counts of sexual assault and kidnapping.

The Maricopa County Attorney's Office says the other boys ages 9, 10, and 13 were charged as juveniles with sexual assault. The 10- and 13-year-old boys also were charged with kidnapping.

Authorities cited the family's Liberian background, noting that in some parts of Africa, girls who are raped often are shunned by their families.

OBAMA-BUEHRLE Pitch perfect: President congratulates Buehrle

CLEVELAND (AP) First fan Barack Obama made time for a congratulatory call to the pitcher on his favorite baseball team who just threw a perfect game.

Mark Buehrle (BUR'-lee) of the Chicago White Sox didn't allow a hit or walk a batter in a 5-0 victory at home over the Tampa Bay Rays. It was only the 18th perfect game in major league history.

The president's spokesman says Obama told Buehrle it was "an unbelievable achievement" and "something that everyone will always remember." Just last week Obama stepped to the pitcher's mound at Busch Stadium in St. Louis for the first pitch at the All-Star game.

Obama wore a White Sox jacket and visited Buehrle and other players before the game.

Obama was in the Cleveland area on Thursday discussing health care. He later traveled to Chicago for several fundraisers.

(Copyright 2009 by The Associated Press. All Rights Reserved.) APNP 07-24-09 0251CDT | save this article / add to your favorites list