LA’s loss, and ours

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

Jan 23, 2024 View in browser   By Ben Fox A view of the Los Angeles Times headquarters following the media company's announcement of newsroom layoffs at the newspaper in El Segundo, Calif. on June 7, 2023. | Patrick T. Fallon/AFP via Getty Images TROUBLED TIMES: The layoffs announced today at the Los Angeles Times came as no surprise. That makes them no less painful — not just for the journalists losing their jobs but for the rest of us, in California and around the nation. Obviously, things weren’t going well at the paper in recent months. The union that represents the journalists staged a walkout last week after the paper warned that substantial cuts were in the works. That was just days after Executive Kevin Merida resigned for murky reasons that reportedly included tensions with Dr. Patrick Soon-Shiong, the billionaire businessman and surgeon who acquired the Times for $500 million in 2018 — rescuing it from the Tribune Company, which had basically driven it into distress over nearly two decades. Many hoped Soon-Shiong would be the paper’s savior and the initial years under his ownership saw the paper recapture some of its swagger. The Times won a Pulitzer last year for its coverage of the leaked-tape scandal that led to the resignation of former City Council President Nury Martinez and put the future of Councilmember Kevin De León in jeopardy. It was just one of the many examples of why the paper is so vital to Los Angeles, not to mention the rest of the state. But the industry-wide challenges facing the newspaper, coupled with more recent stresses such as Covid-19 and the Hollywood strikes, reportedly tanked revenues, leading the company to start making deep cuts last summer. It’s been clear for some time that all was not well at the paper. In July, Soon-Shiong unloaded The San Diego Union-Tribune, another once-great Southern California institution, to Alden Global Capital — a company with a reputation of squeezing the remaining life out of papers it has acquired. The Los Angeles Times reported today that the owner said that the paper — or rather, he — can no longer sustain annual losses of $30-$40 million without showing progress toward building a larger readership and ad business. The cuts announced today amount to about a quarter of the newsroom, according to the union that represents the journalists at The Times. Those who lost their jobs include reporters, editors, photographers and columnists — and much of what was left of a once-mighty Washington bureau. Together, they were putting out some of the best journalism in California and the U.S. even as the paper, and the news industry as a whole, has struggled. It sounds self-serving but the country depends on journalism and journalists and the weakening of one of its strongest voices will be felt. IT’S TUESDAY AFTERNOON. This is 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 sgtaylor@politico.com or send a shout on X. DMs are open. WHAT YOU NEED TO KNOW TODAY CLASS ACTION: Classes resumed across the 23-campus California State University system today after striking professors reached a tentative contract deal with the university Monday night. If ratified, the agreement will make incoming 5 percent raises retroactive to July 2023 and includes another 5 percent pay bump in July of this year, according to the California Faculty Association. The union was seeking 12 percent raises for its 29,000 members, who include lecturers as well coaches, counselors and other staff. The agreement cut short the first systemwide strike in the union’s history. Members stopped work Monday and had planned to stay on picket lines through Friday. — Blake Jones ON THE BEATS LOSING HAND — A pair of ballot initiatives to legalize sports betting in November have folded before the game began. Gaming veteran Kasey Thompson and cryptocurrency executive Reeve Collins are calling off attempts to qualify ballot initiatives allowing wagering on games, a plan that crumbled for lack of support from Native American tribes before they ever collected any signatures. “It was causing a civil war," Thompson said in an interview. “I went into this to unite the tribes all behind one sports initiative, and if there’s going to be money put against it would have made it almost impossible.” Native American tribes that currently rule gambling in California have been pushing back against the initiatives since they were announced last year. — Jeremy A. White A woman walks by cars damaged by floods during a rainstorm in San Diego on Monday, Jan. 22, 2024. (AP Photo/Denis Poroy) | AP TOO MUCH OF A GOOD THING: Gov. Gavin Newsom has declared a state of emergency in San Diego and Ventura counties after an unusually wet winter storm soaked much of Southern California and left widespread damage in its wake. San Diego recorded its wettest ever January day — and one of its rainiest days ever — with 2.73 inches of rain Monday per the National Weather Service. At least 100 homes sustained significant water damage, said Mayor Todd Gloria. The emergency declaration will help expedite relief to both counties and enable people to get faster access to unemployment and other assistance. — Sarah Grace Taylor WHAT WE'RE READING TODAY SUPPLY & DEMAND: Homes sales and prices dropped in Palm Springs after the city imposed a cap on short-term rentals, lending credence to the argument that Airbnb and similar companies are a factor in a shortage of affordable housing. (Los Angeles Times) ROAD TRIP: The Chicago Cafe in Woodland may be the oldest Chinese restaurant in the state, and possibly the nation, according to research by a UC Davis law professor. (UC Davis) FIGHT NIGHT: The first California Senate debate was a Steve Garvey pile-on, with a few elbows thrown at other candidates along the way. (POLITICO)   Follow us on Twitter 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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