POLITICO California Playbook PM: The rent is too damn high

Your afternoon must-read briefing on politics and government in the Golden State

Jun 20, 2023 View in browser   By Wes Venteicher MEAN STREETS: Homelessness is California’s most vexing and visible political issue. A landmark report out today finds there’s a simple explanation for the problem: Housing is too expensive. University of California, San Francisco researchers collected data on 3,200 homeless people in the state. They interviewed 365 of them for the largest study of its kind in decades. Their findings provide some insight into the nation’s largest population of homeless people, estimated at about 171,000. They also address some common misconceptions, including that many come from out of state. The study found that 90 percent were living in California when they lost their housing. In this photo illuminated by an off-camera flash, Mark Lopez, a 41-year-old homeless man, sits next to his tent as homeless people wait in line for dinner outside the Midnight Mission in Los Angeles, Tuesday, Feb. 14, 2023. | Jae C. Hong/AP Photo State lawmakers said the findings underscore the need to put more money toward affordable housing — even while facing a projected budget deficit of $31.5 billion — through things like a proposed bond measure (see below) and legislation. “It reinforces what we’ve been pointing to as viable solutions to stem the tide: More affordable housing, more rental assistance, and more support for people exiting institutions,” Assemblymember Buffy Wicks (D-Oakland), who chairs the Assembly Housing and Community Development Committee, said in a statement. In Sacramento, a new ordinance takes effect on Wednesday that will create an avenue for people to file complaints about homeless camps that could lead to the camps being cleared. Sacramento Mayor Darrell Steinberg said today’s report emphasizes the need for more shelter beds, tiny homes and other living spaces for homeless people to begin to stabilize their lives. “We have an obligation to make sure everyone has a decent place to live and the services that they need,” Steinberg said. “When we do that, I think it’s reasonable to say that people cannot live out on the streets or live outdoors.” Among the report’s other findings: Eighty-two percent of study participants said they had experienced a serious mental health issue.  Two-thirds reported having used illicit drugs in their lives, nearly a third reported using methamphetamines while homeless, and 11 percent said they used nonprescribed opioids. Seventy percent said that with $300 to $500 more per month, they could have kept their housing. People who went directly from a leased apartment to being homeless were earning a median monthly income of $1,400 and paid a median rent of $700. Twenty-one percent of them said they became homeless due to a loss of income. HAPPY TUESDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to ‎wventeicher@politico.com or send a shout on Twitter. DMs are open!   JOIN US TOMORROW! Think you know a lot about politics? PROVE IT! Compete in California Playbook’s inaugural Trivia Night. Grab a drink, kick back, and put your knowledge on display! Join top political power players on Wednesday, June 21st at Fox & Goose Public House for a night of fun and competition that you won’t want to miss. REGISTER HERE.      WHAT YOU NEED TO KNOW TODAY BONDS FOR BEDS: We now have a price tag for Gov. Gavin Newsom’s next phase in addressing homelessness — $4.68 billion. Newsom first laid out his vision to create thousands of new behavioral-health beds during his State of the State tour in March. His office today introduced bills to make it a reality. The governor wants to amend the Mental Health Services Act of 2004 to require that more funds be used for housing, while also borrowing billions to create more beds in facilities for mental health and substance abuse treatment. Both actions will require voter approval on the March 2024 ballot. The dual bills are part of the administration’s ongoing focus on the behavioral health side of the homelessness crisis. Sen. Susan Eggman is carrying the MHSA reform, while Assemblymember Jacqui Irwin carries the bond measure. Newsom wants to sign the package by the end of the legislative session in September, per chief of staff Dana Williamson. — Lara Korte ON THE BEATS OFF THE SHELF: Retail theft has become an industrial-scale crime in recent years. In California — and especially in San Francisco and parts of Los Angeles — it’s a major problem for retailers struggling amid the shift to e-commerce and the lingering effects of the pandemic. Attorney General Rob Bonta today announced a theft-prevention agreement aimed at the organized theft rings that have been behind much of the recent increase, often selling the stolen goods over third-party platforms such as eBay. Major retailers and online sales platforms agreed under the deal to increase staff training for theft prevention. They will also implement policies to increase communications about retail theft among themselves and police. Those signing on to the agreement include Home Depot, eBay and Etsy. — Alexander Nieves FLAME OUT: Achieving the perfect sear with your gas stove may be riskier than you thought. A new peer-reviewed study by Stanford University found that turning a gas stove on high so that the blue flame is visible can raise indoor levels of the cancer-causing air pollutant benzene. The study said stoves can raise benzene levels above healthy benchmarks established by federal and international agencies — even above those from secondhand cigarette smoke. The study adds to a growing body of science linking gas stoves to harmful indoor pollution and thrusting them into the culture wars. A federal court overturned the city of Berkeley’s first-in-the-nation ban on natural gas in new homes and buildings in April of this year. Dozens of other cities and counties have passed bans on gas stoves since Berkeley did in 2019, and the California Air Resources Board voted last year to ban sales of new gas furnaces and water heaters in 2030. — Camille von Kaenel   SUBSCRIBE TO POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don’t miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.     AROUND CALIFORNIA “Inside the deepening rivalry between Florida Gov. Ron DeSantis and California Gov. Gavin Newsom,” by The Associated Press’ Steve Peoples and Michael R. Blood: Beneath the war of words, however, strategists in both parties suggest there may be a mutually beneficial dynamic at play. As they jab at each other’s policies and personalities through comments in the press and on social media, the governors are scoring points with their respective political bases, raising money and expanding their national brands. “It’s not just home insurance. Californians are struggling to insure their cars, too,” by the San Francisco Chronicle’s Claire Hao: All auto insurers are required by California law to offer a policy to drivers with one or fewer violation points in the past three years, but insurance commissioner [Ricardo] Lara said his department has heard of insurers instituting “delay tactics” when they offer and sell policies even to so-called “good drivers.” He said all agents who experience this should contact the hotline so the department can investigate. “Hundreds of thousands face a ‘massive benefits cliff.’ San Diego food banks are scrambling to keep up.” by The San Diego Union-Tribune’s Emily Alvarenga: Beginning in March, CalFresh recipients saw a sudden and dramatic drop in food allowances as they reverted back to pre-pandemic levels, slashing the average recipient’s monthly grocery budget by about $100 for individuals and $200 for families. MIXTAPE “He hosted Hollywood's most elite sex parties. Now he's opening an erotic dinner club where anything goes.” by the Los Angeles Times’ Andrea Chang. “‘A huge landscape’: $35 million ranch of early Apple CEO to become nature preserve,” by the San Francisco Chronicle’s Kurtis Alexander.    Follow us on Twitter Katy Murphy @katymurphy 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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