Newsom’s run-in with reality in the checkout line

Presented by The American Fintech Council: Your afternoon must-read briefing on politics and government in the Golden State

Jan 31, 2024 View in browser   By Ben Fox Presented by California Gov. Gavin Newsom speaks during an event in San Francisco on Nov. 9, 2023. | Jeff Chi/AP ATTENTION SHOPPERS: Gov. Gavin Newsom had a close encounter with political reality — in the checkout line of Target of all places. The governor was out shopping when he was reminded that a) retail theft is rampant and b) people blame him (whether deserved or not). This came out casually, and perhaps inadvertently, in a few idle moments today on Zoom as Newsom was about to lead a news conference with seven mayors to tout Proposition 1 — the measure on the March ballot to restructure mental health services with the goal of helping get more people off the streets and into treatment. That’s when he told what he called “my Target story,” which will resonate with just about anyone who does any shopping in California — as well as with the many critics of criminal justice measures such as the 2014 measure known as Proposition 47. Newsom recalled that he was in the checkout line and spotted a man leaving the store without paying for an item. He asked the store clerk why no one was doing anything and got a provocative answer: The Target employee, apparently unaware of the shopper’s identity, blamed him. “The governor had lowered the threshold” for charging a theft, and, as a result, “there’s no accountability,” the employee said, according to Newsom’s account. “We don't stop them because of the governor,” the employee said. This, as you might expect, riled up Newsom. “I said, ‘That’s just not true.'" He then repeated a familiar talking point that California’s $950 threshold for charging a felony is 10th lowest in the U.S., more stringent than such red states as Texas, Alabama and Mississippi. The Target employee was apparently nonplussed until recognition set in. “She looks at me twice and then she freaks out. She calls everyone over, wants to take photos,” Newsom said. “I'm like, ‘No, I'm not taking a photo. We're having a conversation. Where's your manager? How are you blaming the governor?” Optics aside, this is an important issue in the state right now. Even as violent crime is declining from a pandemic-era spike, concern about retail theft is soaring – with stores routinely locking up even basic staples across the state. Newsom has been facing calls even from fellow Democrats to support changes to Proposition 47, an effort to reduce mass incarceration that reduced some thefts and drug offenses to misdemeanors. Critics of the governor have been just as quick to blame him as the Target employee, and even used his anecdote to further stir the pot. “Newsom was more offended when the store employee blamed him for the crime than the actual crime itself,” the “Conservative War Machine” posted on X. Newsom hasn’t been silent on the issue. Earlier this month, he laid out a property crime package and urged the Legislature to pass new laws to crack down on professional thieves and to expand penalties for large-scale resellers of stolen goods. It’s not clear he meant to talk about it today, though. As he concluded his story to the mayors, the governor said, “I hope all the reporters weren’t on for that.” Target had no immediate comment. IT’S WEDNESDAY 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 bfox@politico.com or send a shout on X. DMs are open.   A message from The American Fintech Council: Cost of living is skyrocketing and millions of Californians are being priced out of their homes… and their lives. Earned Wage Access provides a lifeline – giving hard-working Californians access to their wages as they earn them, NOT when their employers choose to pay. Governor Newsom’s DFPI shouldn’t limit these offerings by misclassifying early access to wages as a loan. Governor Newsom: Protect people’s financial options. Learn more here.   WHAT YOU NEED TO KNOW TODAY LOVE FEST: Leaving aside the Target anecdote, the governor’s Proposition 1 news conference made one fact abundantly clear: Mayors really like it. Seven city leaders — including Fresno’s Jerry Dyer, San Jose’s Matt Mahan and Riverside’s Lock Dawson — are optimistic about the measure that would restructure mental health care and float a $6.4 billion bond to expand treatment. County health officials, who administer treatment in the state, have been resistant to the change and some advocates have expressed alarm about the prospect of compulsory treatment. But the polls show the public is supportive and the mayors — who also included Oakland’s Sheng Thao, Irvine’s Farrah Khan, San Francisco’s London Breed, Sacramento’s Darrell Steinberg — are on board. They see it as a way to get help for people struggling with severe mental health who often end up on the streets. “We can’t let policies that some people define as progressive literally kill our most vulnerable neighbors,” Mahan said. “It’s not progressive to allow vulnerable people to die on our streets.” Dyer, the Republican mayor of Fresno, praised Newsom-backed efforts that he said have helped reduce the number of people on the streets in their city. “Proposition 1 is, in my opinion, the final piece of the puzzle that is going to allow us to dig our way out of this homeless crisis in California,” he said. ON THE BEATS FEC FILINGS:  Campaign finance data is rolling in as candidates race to meet the fourth-quarter Federal Elections Commission filing deadline. We’ll have more in Thursday’s Playbook but here’s some of what we’ve learned so far: Newsom pumps his PAC: Newsom’s federal Campaign for Democracy PAC raised about $3.2 million in the last half of 2023, and spent more than $3.5 million on media buys. The PAC’s biggest funder this quarter was — you guessed it — Newsom himself, who poured another $3 million into the account from his leftover reelection funds. That brings his total contributions up to $8.4 million. There was also a hint of Newsom's reach as he seeks a national role: Nearly half of the money from identifiable small donors flowed from outside California's borders. ONE TO WATCH: State Sen. Melissa Hurtado had another brutal fundraising quarter, raising just over $20,000 in her bid for CA-22. House Democrats' national campaign arm recently decided to go all-in on her opponent, former Assemblymember Rudy Salas, who is hoping for a rematch with incumbent Republican Rep. David Valadao. As of today, Salas had reported a quarterly haul of more than $275,000. Valadao has yet to file. — Lara Korte   A message from The American Fintech Council:   From left, Discord CEO Jason Citron, Snap Inc. CEO Evan Spiegel, TikTok CEO Shou Chew, X Corp. CEO Linda Yaccarino and Meta CEO Mark Zuckerberg are sworn in to testify Wednesday before the Senate Judiciary Committee on Capitol Hill. | Francis Chung/POLITICO META CULPA: During a nearly four-hour hearing in a packed and emotionally charged room, the Senate Judiciary Committee extracted a dramatic apology from Meta CEO Mark Zuckerberg over harmful content facing children on social media, and nudged two other tech companies to gingerly endorse stalled kids’ safety bills. Beyond that, however, an event intended to hold tech CEOs accountable for child safety delivered instead a high-volume illustration of why Congress can’t hold them accountable for much at all. No one should go through the things that your families have suffered,” said Zuckerberg, turning to face families in the hearing room after Sen. Josh Hawley (R-Mo.) loudly pressured him to deliver a public apology. — Rebecca Kern   A message from The American Fintech Council: Hundreds of thousands of working Californians use or have used Earned Wage Access to cover unexpected expenses or stay up-to-date on their bills without resorting to high-interest loans. Earned Wage Access has no impact on credit, no mandatory fees, and keeps people out of debt. In fact, Earned Wage Access helps diverse, everyday Californians maintain financial flexibility, reach financial stability, and build financial momentum for themselves and their families. Governor Newsom’s DFPI is set to enact rules to make it harder for working Californians to use earned wage access products, pushing them towards risky, more expensive, and far less forgiving options. California can’t afford to go backwards. Governor Newsom: Don’t leave Californians in the lurch. Protect people’s right to choose the financial options that work for them, on their own terms. Protect Earned Wage Access. Learn more here.   WHAT WE'RE READING TODAY SOUNDS FAMILIAR: U.S. District Judge Roger Benitez, who has repeatedly ruled in favor of gun advocates, has done so again — striking down a state law that required background checks for nearly all purchases of firearm ammunition, and barred California residents from bringing home ammunition that they purchased out of state. (The San Diego Union-Tribune) WEED WARS: The massacre of six people in a remote stretch of Southern California desert highlights the violence associated with the black market marijuana industry. (Los Angeles Times) DIFI’S LEGACY: Aside from contributions to California politics and policy, the late Sen. Dianne Feinstein also left behind some impressive assets, including a French Renaissance Revival estate in the Spring Valley neighborhood of Washington that’s expected to list for $8.5 million. (San Francisco Chronicle)   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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