A dramatic debut in Silicon Valley

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

Feb 20, 2024 View in browser   By Sarah Grace Taylor ACTION FIGURE: A political unknown has dropped into the crowded Democratic field to replace Rep. Anna Eshoo. And we mean that quite literally. First-time political candidate Peter Dixon sits poised in the door of a helicopter in flight as he introduces himself to Silicon Valley voters in the 16th Congressional District. It’s part of an ad campaign that also features Dixon in a number of rugged settings: strolling through an AI-generated Middle Eastern cityscape with gun-toting soldiers in the background; riding in the back of a Jeep on a dusty road; sitting in the back of a black SUV on an airport tarmac. The ads also feature the requisite spouse-and-family shots and what looks like it would be an ordinary suburban house were it not in a place with some of the most expensive real estate in the U.S. “He still faces an uphill battle since others come in with some name recognition, but he is certainly doing his best with some pretty eye-catching ads, so who knows,” said Kevin Liao, a political consultant who grew up in the district. Peter Dixon for Congress Whether the ads are effective remains to be seen. But they are getting considerable air time thanks to Dixon’s surprisingly ample resources. The candidate, former CEO of a security software company, has spent more than $1.1 million on TV ads according to AdImpact — more than anyone else in the race to replace Eshoo, who is retiring after nearly three decades in office. By comparison, former San Jose Mayor Sam Liccardo has spent about $400,000 and Assemblymember Evan Low has shelled out $700,000. As of the end of the year, Dixon had raised $1.4 million, which includes $700,000 he loaned to his own campaign, according to the most recent Federal Election Commission records. Liccardo raised $1.6 million as of the same period. Dixon says he’s hoping to introduce himself and his compelling resume to make it through the March primary for a seat that is likely to be won by a Democrat in the blue district. The businessman-turned-candidate grew up in Atherton, attended college at the University of North Carolina at Chapel Hill and joined the Marine Corps after the Sept. 11, 2001, terrorist attacks. He worked in the State Department from 2010-11 before heading into the private sector to start his software company, Second Front Systems. Asked why he’d run for Congress as his first ever campaign, Dixon said he was worried about a second Trump presidency. “As somebody who has been in the federal government, I’m profoundly concerned about what Trump would do to democracy in the next four years. Congress is one of the remaining guardrails against that,” Dixon said. Politically, Dixon told POLITICO he shares many of the same views as his Democratic competitors but hopes his background will make him stand out. “I think Democrats are smart enough to know that going for any outsider often leads to somebody who doesn't actually know how to get things done,” Dixon said. “I'm an outsider who has a track record of getting things done.” Voters have already begun casting ballots and he will soon learn whether his campaign will pay off. IT’S TUESDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on 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 GROWING GULF: California’s budget deficit has swelled to a record $73 billion due to underwhelming state tax revenue, according to an estimate from the nonpartisan Legislative Analyst’s Office released this morning. The top-line number is much larger than a $38 billion deficit estimate from the California Department of Finance last month for two main reasons. First, the LAO estimates revenue will be significantly lower than the department does — partly because the LAO had access to two additional months of tax collection numbers in making its projection. Second, the department assumes the state will adopt a complicated budget maneuver that would delay recording billions of dollars of school spending on the state’s books — a move that would shrink this year’s shortfall. Accounting differences aside, it’s still unclear how large the deficit will be in May when Gov. Gavin Newsom unveils an updated budget plan. “No one can say today with certainty how those numbers may change the budget estimate of a $38 billion shortfall,” Department of Finance spokesperson H.D. Palmer said in a statement, noting that $51 billion in income and corporate taxes are forecast to come in between now and April. Palmer also called on the Legislature to “act now” on $8 billion worth of cost saving measures that must clear the Legislature earlier than other budget proposals to take effect this fiscal year. — Blake Jones ON THE BEATS Republican Assemblymember Bill Essayli, of Riverside, speaks on a bill before the Assembly at the Capitol in Sacramento, Calif., in June 2023. | Rich Pedroncelli/AP Photo ANOTHER ROUND: A bill to ban lawmakers convicted of DUI from using Assembly pool vehicles was sent back to limbo today after Assemblymember Bill Essayli made a second attempt to skirt the committee process. Essayli, a Republican lawmaker from Riverside, attempted to get a floor vote on the bill — which appears pointed at Democrats with recent convictions — without going through committees and was instead referred back to the Rules committee to wait for committee assignments. The bill hit a similar wall last year when Essayli motioned for a vote, but couldn’t get a second from Republican floor leader Heath Flora. SINGLE-PAYER SKEPTIC: Assembly Speaker Robert Rivas has thrown cold water on a new effort to pass single-payer health care. After the Legislature last year signed off on preliminary steps, Assemblymember Ash Kalra is back this year with an unfunded policy bill that has given some lawmakers, including the speaker, pause. Rivas expressed skepticism today. "I say this with great respect for stakeholders and advocates: we need to see how this is funded," Rivas told reporters today. "It's a good idea, but it's a tough, tough sell." Rivas’ remarks came hours after the Legislative Analyst’s Office predicted an even greater budget deficit — increasing the expected gap from $58 billion to $73 billion. — Lara Korte WHAT WE'RE READING TODAY PET PROJECT: First-of-its-kind legislation from Assemblymember Matt Haney would require California landlords to accept pets and limit additional deposits for people with animals. (KQED) RENT CONTROL: The Supreme Court rejected a challenge to rent control laws in New York that might have had legal repercussions in California cities with similar regulations, including San Francisco and Los Angeles. (Los Angeles Times) WELCOME BACK: San Francisco is experiencing a tech revival that includes the return of some entrepreneurs and investors who fled during the pandemic to Florida. 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