My wife and I will be having a baby in Aug or Sep, and we have heard that the state of CA possibly pays disability during her maternaty leave. Is this true? We also heard that her employer will pay her during the same period? Other than vacation or sick time, I find this hard to believe. Any thoughts?

California has a paid family leave program. You can read about it at: http://www.jacksonlewis.com/legalupdates/article.cfm?aid=624