Who doesn’t love getting a check in the mail?

Jeremy B. White's must-read briefing on politics and government in the Golden State

Jan 13, 2022 View in browser   By Jeremy B. White, Chris Ramirez and Graph Massara THE BUZZ — SHARING THE WEALTH: California's brimming budget could pad voters' wallets. In a fortuitous development for Democrats , revenue surged right ahead of an election year. State bean-counters peg the overflow in the tens of billions. Starting from a place of plenitude will likely smooth negotiations between Gov. Gavin Newsom and lawmakers, and it could also allow them to give voters a financial boost before they head to the polls. That could entail California rerouting cash directly back to taxpayers. Under the voter-enacted spending cap known as the Gann limit, the state must send excess funds to education or back to California residents. Newsom and his fiscal analysts have made clear that California's windfall is likely to trigger that mechanism. The governor was reticent during his budget reveal about detailing what that would look like, but on Wednesday, he said "we are likely to have an additional rebate to the taxpayers" — conjuring the Golden State stimulus checks that went out during last year's recall campaign. A planned gas tax hike may also be on hold. Republicans and frontline Democrats have been clamoring for California to halt a planned annual increase that was baked in in 2017. Newsom included just such a tax "holiday" in his budget, which spurred enthusiasm from the likes of Democratic Rep. Josh Harder (who also claimed some credit for the idea). It's easier to forego more than $500 million in projected revenue when there's plenty to go around. That scheduled gas tax increase was a major accomplishment for Gov. Jerry Brown and Democrats. It required some serious vote-wrangling, the effects of which reverberate to this day, and fueled a successful recall of Sen. Josh Newman (who subsequently won back his seat). So don't count on Democrats abandoning that work and ending the gas tax escalator, as GOP Assemblymember and House candidate Kevin Kiley is proposing. But a reprieve certainly won't hurt elected officials whose constituents are struggling with rising costs and maintain a gloomy economic outlook. Not that Republicans are easing up on excoriating Democrats over taxes. A proposed constitutional amendment to fund single-payer health care may never clear a committee vote, but Republicans are hammering Democrats by linking them to a potentially massive tax increase. The practical effect of Democrats' two-thirds majorities is often overstated — having the margin for a tax increase doesn't mean you actually have the votes — and that's never truer than in an election year. BUENOS DÍAS, good Thursday morning. Heavyweight union officials and lawmakers are rallying at the Capitol today in favor of Newsom's proposal to reinstitute two weeks of paid coronavirus sick leave, underscoring that it's a priority for organized labor. Got a tip or story idea for California Playbook? Hit jwhite@politico.com or follow me on Twitter @jeremybwhite. QUOTE OF THE DAY: "There's a legislative proposal that has nothing to do with the universal health care program I put out. … Ours is funded. Ours is budgeted. Ours allows us to not only balance the budget this year but to balance the budget three years out." Newsom on how his universal Medi-Cal plan differs from single-payer legislation. TWEET OF THE DAY: Former Assemblymember Bruce Young @realassemblyman, who was convicted on corruption charges, later dismissed, on lawmakers' relationships with lobbyists: "(2) They used to have a thing called Moose Milk where members and lobbyists would gather to get to know each other. I would be less than honest if I didn't admit that when all things were equal, I sided with my friends. I used to say that my friends won all ties." WHERE'S GAVIN? In Santa Clara County, to highlight the transportation and infrastructure investments in his budget. Stream at 11 a.m. via Twitter, Facebook and YouTube.   BECOME A GLOBAL INSIDER: The world is more connected than ever. It has never been more essential to identify, unpack and analyze important news, trends and decisions shaping our future — and we've got you covered! Every Monday, Wednesday and Friday, Global Insider author Ryan Heath navigates the global news maze and connects you to power players and events changing our world. Don't miss out on this influential global community. Subscribe now.     TOP TALKERS NO-SHOW — McCarthy rejects Jan. 6 committee request for testimony about talks with Trump, by POLITICO's Kyle Cheney, Nicholas Wu and Olivia Beavers: McCarthy, who helped scuttle an attempt to establish a bipartisan commission to investigate the insurrection, has spent months thrashing the Jan. 6 committee. GONZALEZ-FLETCHER FIRE — "'Suspicious' fire in San Diego scorches home of former legislator Lorena Gonzalez," by the San Diego U-T's Teri Figueroa: "San Diego police Sgt. Rick Pechin said investigators think the fire was suspicious but would not say how or where the blaze started. He said the Metro Arson Strike Team — composed of police and fire investigators — is handling the investigation." — "'A nightmare.' Sacramento sued 12 homeowners during COVID. They lost control of their homes," by the Sac Bee's Theresa Clift: "Councilman Sean Loloee … wants the city to instead start fixing the code violations for older residents, such as towing abandoned vehicles and paying for storage units." CALIFORNIA AND THE CAPITOL CORRIDOR CLOCK IN — "As hospitals reel, California tells coronavirus-positive medical workers to stay on the job," by the LA Times' Hayley Smith: "The policy, set to remain in place through Feb. 1, is designed to keep many healthcare workers on the job at a time when hospitals are expecting more patients." — "Nurses, doctors sick. Ambulances, blood in short supply. Omicron hits L.A. healthcare hard," by the LA Times' Rong Gong Lin-II, Luke Money and Emily Alpert Reyes: "L.A. County has identified the 20 most hard-hit emergency rooms, and county employees have been dispatched to the top 10 — all privately run hospitals — to assist with offloading ambulances; the other eight are expected to receive federal help within the next two weeks, Ghaly said." NEW RULES — "San Jose leaders approve new COVID-19 booster shot mandate," by the Mercury News' Maggie Angst and Summer Lin: "The City Council on Tuesday night also adopted a new ordinance requiring visitors of large, indoor events held at public facilities such as the SAP Center and San Jose Convention Center to show proof they received a booster shot — or at least submit a negative COVID-19 test — before entering." BLOCKED — "Judge blocks new California law limiting vaccine site protests," by the SF Chronice's Bob Egelko: "A recent state law that prohibits protesters from coming within 30 feet of vaccination clinics to harass or obstruct those seeking to enter has been blocked by a federal magistrate, who said it violates free speech." HERE WE GO AGAIN — "Oakland schools: Another 'sickout' set for Thursday in solidarity with students demanding COVID safety," by the Mercury News' Summer Lin: "Even as the students threaten to stay home next week, dozens of teachers and staff members are continuing a sickout to push for similar measures the students are seeking and in solidarity with the students." REPORT CARD — " 'Grim' outlook for California children's well-being, report finds," by EdSource's Carolyn Jones: "The expansion of transitional kindergarten was a bright spot in the report. California got an A- for its investment in transitional kindergarten for all 4-year-olds, but it needs to do more to ensure that all children have access to early childhood education, the report said." HEAT WAVE — " Gov. Newsom announces plan to deal with extreme heat," by the LA Times's Cindy Carcamo: "State officials, when asked why they hadn't completed the proposals identified in 2013, cited lack of funding as part of the reason. The new recommendations are tied to $300 million in funding that was set aside during last year's budget." NO ON TOBACCO — " Sacramento County bans flavored tobacco products, including e-cigarettes and menthol," by Cap Radio's Sammy Caiola: "The county's move comes months before Californians vote on a statewide initiative, which could uphold a previous ban signed into law by Gov. Gavin Newsom in 2020." HOUSING — "After a pandemic pause, Oakland ramped up homeless camp closures again. Why? " by Oaklandside's Natalie Orenstein: "In the spring of 2021, closures resumed in earnest. There were three scheduled in March 2021 and another three in April, with a big jump to 12 in May. Since then, planned closures have been consistent, ranging from six to 11 each month." MURKY WATERS — "PG&E Liable for Potential San Francisco Waterfront Contamination," by Bloomberg Law's Maya Earls: " PG&E may be held directly liable under the Clean Water Act and the Resource Conservation and Recovery Act because its predecessor operated the plant and handled or transported waste, according to the U.S. District Court for the Northern District of California." SICK DAYS — "Will COVID sick leave return to California?" by CalMatters' Sameea Kamal: "The supplemental leave – on top of the minimum three days of paid sick leave a year that all employees get – was funded last year by a federal tax credit equal to a worker's paid time off, including any health care costs. That credit also expired Sept. 30. The state law didn't contain a provision to reimburse businesses – and it's not in Newsom's proposed budget, or in his emergency $1.4 billion request for COVID response." RINGER OFF — " Remember COVID-19 phone alerts? California app ignores at-home tests, missing exposures," by the Sac Bee's Jason Pohl: "California officials chose not to include an at-home testing option out of concerns that people might erroneously input tests or distort the system." WATER WORLD — "Wet Season Watch: Will California get out of drought this winter? " by the SF Chronicle's Yoohyun Jung and Kurtis Alexander: "State officials track the snowpack in the Sierra Nevada and the mountains of the far north by measuring its water content. This is considered the best metric for gauging how snow will boost water supplies." CRIMINAL JUSTICE — "S.F. police chief slams D.A.'s office for dropping charges against suspect accused of assaulting officers," by the SF Chronicle's Andres Picon: "The charges were dropped after prosecutors found that there were inconsistencies in police officer statements and that Lugo was not breaking any laws when he was stopped by police, said Rachel Marshall, a spokesperson for the district attorney's office." — "New report reveals who gets stopped by the police in California," by the LA Times' Justin Ray: "A higher percentage of Black people were stopped for reasonable suspicion than any other racial identity group. People perceived to be Latino (40.4%), white (31.7%), or Black (16.5%) made up the vast majority of stopped individuals. The graph below shows a breakdown of these stops." — "Kin of dead sex abuse victim sue under new California law," by the AP's Brian Melley: "Previously, survivors of plaintiffs who died in California could seek damages for economic losses such as wages or medical bills, but not for their loved ones' so-called pain and suffering or disfigurement. California was one of few states not to allow those type of damages after death." BIDEN, HARRIS AND THE HILL ON TO THE NEXT STEP — "Senate panel confirms L.A. Mayor Eric Garcetti ambassador nomination to India," by the LA Times' Dakota Smith: "If Garcetti is confirmed by the Senate before his term ends, the City Council could appoint an interim mayor. If the office of mayor becomes vacant, the City Council president, in this case Nury Martinez, serves as acting mayor 'pending appointment and qualification of a successor,' according to the City Charter." ROCK THE VOTE — "California Democrats worry Black turnout hinges on voting rights bills. Can Biden deliver? " by the Sac Bee's Marcus D. Smith and David Lightman: "Chances are that the measures being considered in Washington won't impact California voting rules much, since restricting poll access is not a huge problem in the state. … The danger of not passing the voting rights bills, said Black leaders, is in the perception that votes don't matter." CAMPAIGN MODE ANOTHER ONE — "Former San Jose assistant police chief jumps into sheriff's race," by the San Jose Spotlight's Eli Wolfe: "Knopf told San José Spotlight he believes some of the issues afflicting the Sheriff's Office are similar to what he encountered at the San Jose Police Department six years ago, including lack of morale and leadership, retention issues and trouble hiring." LEADER LUCRE — House Minority Leader Kevin McCarthy reported raising nearly $12 million in the final quarter of 2021 to bring his haul for the year to a record $72.4 million — money that he'll deploy to elected enough Republicans to position himself to be Speaker. SILICON VALLEYLAND BYE, A.I. — "Economists Pin More Blame on Tech for Rising Inequality," by the New York Times' Steve Lohr: "Half or more of the increasing gap in wages among American workers over the last 40 years is attributable to the automation of tasks formerly done by human workers, especially men without college degrees, according to some of his recent research." — "Tech firms cheer smoother visa sailing," by Axios' Margaret Harding McGill: "The demand for technical jobs has spiked during the pandemic, while a tight overall national job market continues to face pandemic-related stress." — " Elizabeth Holmes: Theranos fraudster to avoid sentencing for at least eight months," by the Mercury News' Ethan Baron: "The decision by Judge Edward Davila followed a court filing Tuesday by Holmes' legal team indicating that they had agreed with the prosecution to put off the hearing until Sept. 12. Sentencing in federal criminal trials usually takes place within a few months." MIXTAPE ANIMAL CROSSING — "World's Largest Wildlife Crossing Is Finally Underway in Los Angeles," by Curbed's Alissa Walker. LET'S GET DIGITAL — " California state government ending office leases as employees shift to telework," by the Sac Bee's Wes Veinteicher. — "L.A. County foster care system to ramp up services in Indigenous languages," by the LA Times' Jaclyn Cosgrove. DIRTY TALK — "Meet the San Francisco man with the inside dirt on city's famously filthy streets," by the SF Chronicle's Heather Knight — "Muir Woods is getting a $20 million restoration. Here's the most ambitious part of it," by the SF Chronicle's Sam Whiting. — "LAPD Falsely Blames Temporary Closing of Wilshire Station On 'Defunding' In Face Of COVID Surge and 12% Proposed Budget Increase," by LA Taco's Lexis-Olivier Ray. — "S.F. appellate justice is latest Biden appointee confirmed to the Ninth Circuit, " by the SF Chronicle's Bob Egelko BIRTHDAYS Kristina Schake … Nora Walsh-DeVries of Rep. Katie Porter's (D-Calif.) office ... Julia Louis-Dreyfus ... Mary Podesta ... Shira Feinstein   STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president's ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.     CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you're promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.   Follow us on Twitter Jeremy B. White @JeremyBWhite POLITICO California @politicoca   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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