POLITICO California Playbook PM: Dem governors may need to rebook LA trip

Presented by U.S. Bank: Your afternoon must-read briefing on politics and government in the Golden State

Jul 12, 2023 View in browser   By Alexander Nieves and Rachel Bluth Presented by U.S. Bank PICKET LINE PREDICAMENT: Summer plans are getting complicated for anyone visiting LA — including the nation’s Democratic governors. A dozen state leaders are scheduled to be in town July 24-25 for the Democratic Governors Association’s summer policy conference at the swanky Beverly Hilton.  Just one problem: Employees at the Beverly Hilton are on strike, joining thousands of other hotel workers who have been taking part in rolling walkouts at hotels in Los Angeles and Orange County this summer. That’s a problem for any Democrats attending the conference, but especially Gov. Gavin Newsom and others from states where union clout is strong. Newsom says he won’t cross a picket line at the Beverly Hilton or any of the other Southern California hotels embroiled in a strike by workers seeking higher wages to pay for the high cost of living in California. The Beverly Hilton is one of 61 hotels snarled in a contract dispute with Unite Here Local 11. The union has orchestrated a strategy that calls for work stoppages in waves – targeting more than a dozen locations around major tourist hubs like Disneyland, Los Angeles International Airport and Downtown LA. The governors conference would offer the highest-profile opportunity yet for workers to capture national attention, all but guaranteeing that it would spark a walkout. Unite Here Local 11 leaders are calling on the Democratic governors to join the picket line. At a minimum, the union wants them to move their event immediately to the Westin Bonaventure, which reached a tentative deal with the union on June 28 and averted a strike. The dispute doesn’t appear to be close to a resolution. Union Co-President Kurt Peterson said the group negotiating for the hotels has not “moved from their poverty proposal.” Representatives for the hotel negotiating group did not immediately respond to requests for comment. Keith Grossman, an attorney for Hirschfeld Kraemer, one of the firms representing hotels, said earlier this week that the union had not responded to an offer to resume negotiations on July 14 or July 18. The DGA said its members won’t cross a picket line but hasn’t yet decided whether to change the venue. “We are closely monitoring the situation and hope it is quickly resolved in a manner that is fair to the workers and their families so we can continue our event as planned,” DGA Communications Director Sam Newton said in a statement. Striking hotel workers fan each other as they rally outside the InterContinental Los Angeles Downtown Hotel Tuesday, July 4, 2023, in downtown Los Angeles. (AP Photo/Damian Dovarganes) | AP HAPPY WEDNESDAY 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 ‎rbluth@politico.com or send a shout on Twitter. DMs are open! A message from U.S. Bank: At U.S. Bank, we believe young people deserve access to financial education. That’s why we’ve partnered with Junior Achievement of Northern California to teach young people the skills they need to take charge of their economic and academic success. By supporting the next generation, we are investing in communities across California not just today, but for decades to come. Because U.S. Bank is small enough to care, and big enough to make a difference. Learn more.   WHAT YOU NEED TO KNOW TODAY MINIMUM WAGE: A contentious health care worker minimum wage bill that cleared the Assembly Labor and Employment Committee today — over the objections of nurses, hospitals and clinics — promises to be one of the biggest fights of the legislative session. Its author, Los Angeles Sen. Maria Elena Durazo, has changed her argument slightly. She’s now zeroing in on the state’s commitment to funnel over $35 billion into the health care industry through a renewed tax on health plans, including $300 million to distressed hospitals — and poking holes in the argument that hospitals and clinics are too poor to afford the higher wage. “How can we help distressed hospitals, the buildings, but not distressed people?” Durazo said during her testimony. “Most hospitals are not distressed. Most health facilities can afford this.” On The Beats UNDER NEW MANAGEMENT: The country’s largest university system has a new leader. Mildred García will be the California State University’s next chancellor, bringing seven years of experience as a campus president to the post. The university’s board of trustees announced the selection today, installing her atop a system facing a budget shortfall, shrinking enrollment and criticism of the university’s handling of sexual harassment allegations — which led to Chancellor Joseph I. Castro’s resignation in 2022. García previously led CSU Dominguez Hills and then CSU Fullerton, and was most recently president of the American Association of State Colleges and Universities. Born to parents who moved from Puerto Rico to New York, she will be CSU’s first Latina chancellor. Her tenure at the 23-campus network enrolling nearly half a million students will begin in November. — Blake Jones MENTAL HEALTH CONFAB: With just weeks left in the legislative session, Newsom is pushing hard to get everyone on board with his plan to revamp the state’s 20-year-old mental health law, newly christened the Behavioral Health Services Act. He and other officials met today with local behavioral health leaders to discuss his proposed changes, which include devoting a third of counties’ mental health budget to housing. While city officials seem supportive of the plan to use the money to house the state’s most visible homeless populations, county leaders have expressed some discomfort with the magnitude of changes, which would put a dent in their health budgets. Newsom said that his conversations have been productive, and he’s aware of counties’ concerns, but that there’s still plenty of money to go around. “Folks are realizing there’s an abundance of flexible dollars” that can still be used for mental health priorities like prevention and early interventions, he said. California Health and Human Services Secretary Mark Ghaly added that behavioral health leaders will have to change how they do business and embrace changes, “not dismiss them as too hard.” HEATING UP: Government officials are bracing for a heat wave expected to bring triple digits to much of the Central Valley and Southern California starting Friday and continuing through the weekend. Temperatures will remain in the 70s and 80s overnight, providing little relief, warned Courtney Carpenter of the National Weather Service. The high temperatures would likely break some records, Carpenter said. The governor’s office is spearheading a new public awareness campaign in a dozen languages and in partnership with hundreds of local organizations. But the administration recently scaled back or delayed some of its plans to respond to extreme heat as a public health danger, including community resilience centers, because of the multibillion-dollar budget deficit. — Camille von Kaenel   A message from U.S. Bank:   AROUND CALIFORNIA — “S.F.’s top 5 taxpayers make up nearly a quarter of business taxes. Here’s why that’s dangerous,” by the San Francisco Chronicle’s Roland Li: The findings could spur potential changes to the tax code, as city officials also grapple with post-pandemic challenges triggered by remote work and a commercial real estate crash. — “Dolores Huerta Foundation receives $7 million for new home in downtown Bakersfield,” by The Bakersfield Californian’s John Cox. The Legislature approved a $7 million grant this month that brings the nonprofit closer to within $7 million of its goal of raising enough money to build the Dolores Huerta Peace and Justice Cultural Center along Eye Street between 21st and 22nd streets. Construction is expected to begin by the end of next year and take 18 to 24 months to complete. — “Homeless people find room for improvement at San Diego’s new safe sleeping site,” by The San Diego Union-Tribune’s Gary Warth: The city of San Diego’s first safe-sleeping site has gotten mixed reviews from a few of the clients who have checked in since its June 30 opening. MIXTAPE — “College sports powers stall bid to share revenue with athletes in California,” by The Wall Street Journal’s Louise Radnofsky and Laine Higgins.  — “She steals surfboards by the seashore. She’s a sea otter,” by The New York Times’ Annie Roth.  A message from U.S. Bank: At U.S. Bank, community is everything.   That’s why we’re investing in communities across California by partnering with organizations like Junior Achievement. Together, we are teaching young people the skills they need to take charge of their economic and academic success. Students in these programs learn valuable financial education lessons, build professional skills and plan for the future. We are proud to offer our staff the opportunity to mentor young people in practical, meaningful ways that will impact their lives as they grow into adulthood. By supporting the next generation of Californians, we’re investing in the future of the state and its communities. U.S. Bank. Small enough to care, and big enough to make a difference. Learn more.     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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