POLITICO California Playbook PM: A tuition freeze starts to thaw

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

Jul 10, 2023 View in browser   By Blake Jones and Rachel Bluth Presented by U.S. Bank EVEN HIGHER EDUCATION: One of the better bargains in American higher education may soon become less of a deal. Board members of the California State University are starting to discuss a plan to raise tuition by 6 percent — only the second increase in 12 years and one partially attributed to higher health care costs. Annual in-state tuition at CSU campuses now runs $5,742 — a steal compared with most private colleges and far less than the $13,752 cost of its sister system, the University of California, which is already in the middle of a multi-year tuition hike of its own. Still, many students — or their parents — struggle to cover the cost of college even with financial aid, as fees, textbooks and California rents add to the sticker price. Raising tuition will inevitably make it harder for many people to achieve their education goals without loans that can be a burden long into adulthood. CSU’s leadership is well aware of the precarious financial footing of many families, especially as it tries to preserve diversity in a state where voters have banned the use of race in making admission decisions. Perhaps that’s one reason university leaders are slow-walking the decision. The board will hold its first hearing on the proposal Tuesday and isn’t expected to make a final decision until September. Students protesting tuition hikes outside a CSU Board of Trustees meeting in Long Beach in November 2012. | AP The plan would raise $840 million over five years by increasing tuition for students — from undergraduates to PhDs –—each year beginning in 2024. It would funnel one-third of the revenue to grants for low-income students. The rest would help close a yawning budget gap that has placed system leaders on high alert over the past few months. Costs of climbing health care premiums, expanded mental health services, inflation and more have outpaced annual funding increases from the state, squeezing the system’s finances, said CSU Director of Strategic Communications and Public Affairs Amy Bentley-Smith. “The CSU is committed to keeping costs low, and we continue to be one of the most affordable higher education systems in the nation,” said Bentley-Smith, adding that some change will be necessary to balance CSU’s books. The chancellor’s office argues the impact on CSU’s most disadvantaged students will be limited. Only 40 percent of undergrads would pay more under the plan, while the rest would continue to have their tuition covered by grants and waivers. Yet the proposal is concerning advocates for college affordability as California living costs keep climbing and just after the Supreme Court sank President Joe Biden’s student loan forgiveness plan. Some of CSU’s nearly half-million students are planning to protest the increases at Tuesday’s meeting in Long Beach. University union members are also expected to show up, looking to add pressure to ongoing contract negotiations with the university — another pressure point on the 23-campus system’s financial outlook. HAPPY MONDAY 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 TAKING A VICTORY LAP: Gov. Gavin Newsom savored a win today as he signed a package of infrastructure bills that he demanded as part of the nearly $311 billion budget deal he worked out with the Legislature. The package included changes to the California Environmental Quality Act that Newsom secured over the objections of Democratic allies who were skeptical of the rush to enact them as part of the budget — as well as the governor’s insistence that the action was necessary for the state to respond to the climate crisis. He made the case again as he signed the bills, saying he was running out of time given the severity of the crisis and the time he has left in office. “I feel a deep sense of urgency. I don't want to just come up here and lament about extreme heat, extreme droughts, extreme weather,” he said. “I want to actually deliver not just on goals and ambition but on projects, and so I'm in a different mindset.” The governor’s push to get the package through the Legislature at the end of the budget season ruffled some feathers, but more than a dozen lawmakers nonetheless joined him for the photo shoot. They included new Assembly Speaker Robert Rivas (D-Hollister) and Sen. Nancy Skinner (D-Oakland). The latter, who chairs the Budget Committee, portrayed the package as a rare moment of agreement between environmentalists and industry. — Camille von Kaenel On The Beats A DIFFERENT KIND OF EMERGENCY: Solving Los Angeles’ protracted housing crisis is hardly the same as contending with an earthquake or other natural disaster, and now Los Angeles’ declared state of emergency on homelessness has been updated to reflect that. Mayor Karen Bass and leaders of the Los Angeles City Council today presented an enhancement to the emergency declaration that Bass signed on her first day in office in December. The updates to the original declaration allow Bass to suspend competitive bidding for services without first needing a Council-backed resolution. The Council picks up some additional oversight powers, reflecting some of the frustrations aired by Council members this spring that they weren’t getting enough details on Bass’ signature Inside Safe program to move people living in encampments into motels and other temporary facilities. Council President Paul Krekorian said the original emergency declaration was a “blunt instrument” in the powers it authorized to the mayor’s office. The new language is “more of a locking-of-arms kind of program” to make sure the mayor’s office and City Council are on the same page, he said. “We're not meeting in the Emergency Management Department today,” Bass told reporters at a City Hall press conference. “Because again, this is a crisis that we know is going to be ongoing and it requires us to have a sustained focus and effort.” — Melanie Mason STRIKE TWO: Thousands of workers at eight hotels near Los Angeles International Airport walked off the job this morning, following on the heels of a three-day work stoppage over the July Fourth weekend. The move is part of a strategy orchestrated by leaders of Unite Here Local 11, who say workers are planning to strike in waves at hotels around Los Angeles and Orange counties. The initial demonstration covered 19 hotels in Los Angeles, Santa Monica and Orange County, including a large contingent in downtown LA, which was hosting a large anime convention. Employees at more than 60 hotels represented by the union voted to authorize work stoppages after their contract expired on June 30. The union, which has around 32,000 members in Southern California and Arizona, has offered a proposal that includes an immediate $5 hourly wage hike and an annual $3 increase over the next three years. Hotel representatives have countered with a $2.50 raise in the first year and $6.25 over four years. — Alexander Nieves   A message from U.S. Bank:   AROUND CALIFORNIA — "Why is it so hard to solve the drug crisis in San Francisco?" by the San Francisco Chronicle’s Megan Cassidy and Gabrielle Lurie: “It was a lot,” he said recently with an embarrassed laugh as he took a break from working with cattle on an island in the Sacramento-San Joaquin River Delta. — "$20 million lawsuit claims anti-Asian bias at San Jose tech company," by The Mercury News’ Ethan Baron: A long-time employee at a San Jose tech company is seeking $20 million in a wrongful-termination lawsuit accusing the firm of a "culture of prejudice against Asians," and a manager of saying his internal presentation on discrimination "made White people feel bad." — "How Sacramento State fostered a diverse student body without the help of affirmative action," by The Sacramento Bee’s Marcus D. Smith: Sacramento State is one of the most diverse colleges in all of California — a state that stopped allowing race to be a criteria for admission in its public academic institutions in 1996 with the passage of Proposition 209. MIXTAPE _ “Hollywood studios could face two strikes for the first time in 63 years. How did we get here?” by the Los Angeles Times’ Stacy Perman and Anousha Sakoui — "SF police describe chaos at skateboard event, face questions over mass arrests," by the San Francisco Chronicle’s Sam Whiting, Nora Mishanec and Jordan Parker — "The Californians whose scam PACs tricked Trump and Clinton supporters out of millions," by the Los Angeles Times’ By Laura J. Nelson — "Next, maybe last, big test for California's controversial math framework," by EdSource’s John Fensterwald 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

To change your alert settings, please log in at https://www.politico.com/_login?base=https%3A%2F%2Fwww.politico.com/settings This email was sent to rouf@idiot.cloudns.cc by: POLITICO, LLC 1000 Wilson Blvd. Arlington, VA, 22209, USA Please click here and follow the steps to unsubscribe.