Why Assembly Dems are slowing their roll on the budget

Inside the Golden State political arena

Mar 22, 2024 View in browser   By Dustin Gardiner and Lara Korte WHAT HAPPENED WITH PROP 1? Join POLITICO California’s health care reporter Rachel Bluth on Tuesday evening for a post-mortem analysis on the narrow passage of Proposition 1, Gov. Gavin Newsom’s signature mental health ballot initiative. Rachel will host an evening of hot takes and libations at Manny’s in the Mission, 3092 16th Street in San Francisco. Register here for $15; the event starts at 6 p.m. Come with your questions about its implications for homelessness, mental health and Newsom’s political ambitions. Assembly Speaker Robert Rivas, center. | Rich Pedroncelli/AP THE BUZZ: TAKING A BREATH — Gavin Newsom says he’s grateful lawmakers have taken to heart his push to start trimming the state’s multibillion-dollar deficit now — months before the budget deadline. But Assembly Democrats told Playbook on Thursday that they weren’t about to be rushed. That underlying tension between the lower chamber and the governor’s office — discussed diplomatically in public but more apparent in the frank conversations with lawmakers — surfaced this week when Newsom and legislative leaders announced they had an agreement to trim the budget deficit by $12 billion to $18 billion, without specifying the details. The challenge for Speaker Robert Rivas is that the other major players at the budget negotiation table — Newsom and Senate President Pro Tem Mike McGuire — have already agreed on some cuts and want to move at breakneck speed while the Assembly is nowhere close on the specifics. Unlike Newsom, who can act unilaterally, and McGuire, who has a more cohesive and smaller caucus (and a tighter grip on his members), Rivas is trying to telegraph to his sprawling caucus that each and every one of them will be heard. Assembly Budget Chair Jesse Gabriel said he and Rivas have been clear from the outset that they wanted to ensure a more “transparent and inclusive” budget process for lawmakers. Part of doing that, he said, is taking the time to keep their fellow Dems in the loop. The Assembly is still aiming to pass an early budget package in April, months ahead of their usual schedule. “We have a big, diverse caucus with a lot of people who … want to be at the table,” Gabriel told Playbook Thursday, as lawmakers left the chamber for their weeklong spring recess. “Speed is important in certain situations. But the balance there is to do things in the right way.” Lawmakers don’t need to take any budget action until June, but Newsom has been especially eager to begin slashing the deficit. It’s not hard to understand why: The governor hates the rolling negative headlines about California’s projected $38 billion to $73 billion deficit and wants to erase the red ink ASAP. The speaker’s allies say he’s trying to break away from a prior Assembly era under former Speaker Anthony Rendon, when budget deals were often cobbled together with Newsom while most members were in the dark (especially during the pandemic years). But to do that, the new speaker has to wrangle a fractured, 62-member caucus, forging agreement among a large and opinionated group of lawmakers. The early proposal in question — the one the Senate released this month — includes relatively uncontentious cuts and spending delays. Unless there’s a windfall, Rivas’ task will only get harder as June approaches. GOOD MORNING. Happy Friday. Thanks for waking up with Playbook. Now you can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte. WHERE’S GAVIN? Nothing official announced.   SUBSCRIBE TO GLOBAL PLAYBOOK: Don’t miss out on POLITICO’s Global Playbook, the newsletter taking you inside pivotal discussions at the most influential gatherings in the world, including WEF in Davos, Milken Global in Beverly Hills, to UNGA in NYC and many more. Suzanne Lynch delivers the world's elite and influential moments directly to you. Stay in the global loop. SUBSCRIBE NOW.     BILLS BILLS BILLS Assemblymember Wendy Carrillo. | José Luis Villegas/AP Photo FIRST IN PLAYBOOK: REDRESS FOR THE RAVINE — In the 1950s, hundreds of families — predominantly Latinos — were displaced from Chavez Ravine, which would come to be known worldwide as the home of Dodger Stadium. Now, a new Assembly bill is seeking a deeper probe into that history and potentially open the door to financial reparations to those who were affected. The bill, AB 1950 by Assemblymember Wendy Carrillo, doesn’t yet specify what form those reparations would take; some possibilities include city-owned real estate or inflation-adjusted cash compensation. The bill, which also calls for a permanent memorial to the displaced residents, is co-sponsored by Insurance Commissioner Ricardo Lara. While the issue doesn’t fall into his purview as top insurance regulator, the bill is about “correcting a historical injustice,” he said in a news release. (Lara is among the local pols considering a run for LA county supervisor when Hilda Solis reaches her term limit in 2026. Solis’ district includes Dodger Stadium.) While key details of the proposal remain TBD, proponents want to make one thing clear: The bill “focuses solely on the displaced community of Chavez Ravine and does not involve the Los Angeles Dodgers or Dodger Stadium,” per their news release. — Melanie Mason  ELECTION UPDATES Assemblymember Kevin McCarty. | Rich Pedroncelli/AP TO THE LEFT, TO THE LEFT — While other California cities lean more toward the political center, Sacramento’s mayoral race is shaping up to be a contest between two avowed progressives. Votes were still being counted Thursday, but the contest appeared headed for a November runoff between epidemiologist Flojuane “Flo” Cofer, a far-left activist, and Assemblymember Kevin McCarty. McCarty was on track to narrowly edge out former state Sen. Richard Pan and former City Councilmember Steve Hansen by a few hundred votes. McCarty, a member of the Assembly’s Progressive Caucus, said he’s regrouping — and mentally preparing to potentially be the more moderate Democrat left standing. “I’ve never ran a big race with somebody to my left,” McCarty told Playbook Thursday outside the Capitol. “But I think I fit where Sacramento is.” He said he’s hopeful that he can hold onto his progressive supporters and scoop up many voters who backed Pan and Hansen in the primary.   In celebration of Earth Month, the USC Wrigley Institute for Environment and Sustainability and the USC Dornsife Center for the Political Future, in collaboration with POLITICO, host “Climate Forward 2024: Climate at the Crossroads” on April 4, 2024 at USC. Top experts from politics, government, media, and academia will discuss climate change issues with a focus on finding practical policy and business solutions as well identifying ways to remove political obstacles to implementing those changes. Register to attend in person or virtually.     CLIMATE AND ENERGY HOW GREEN LATINOS — The oil industry and environmentalists see an opportunity to bring Latinos around to their views on California’s climate transition — which California’s largest demographic broadly supports but sometimes struggles to afford. Read more in last night’s California Climate. TOP TALKERS — Los Angeles, a city synonymous with car culture, has plans to overhaul a storied, 3.6-mile stretch of Hollywood Boulevard. (Los Angeles Times) — Despite the writers’ and actors’ strikes ending months ago, studio executives say production has been slow to bounce back in California. (Los Angeles Times) — State Farm announced that it doesn't plan to renew about 30,000 property insurance policies and 42,000 apartment plans in California due to fire risk. (San Francisco Chronicle) PLAYBOOKERS SPOTTED: BIRTHDAY BOY — Former San Francisco Mayor Willie Brown’s week of 90th birthday festivities continued Wednesday, with a VIP-studded party. Brown’s party was held in the gold leaf-gilded North Light Court building, where he was toasted by friends and allies, including SF Mayor London Breed; LA Mayor Karen Bass; District Attorney Brooke Jenkins; and former Brown press secretary P.J. Johnston. More here from KQED. BIRTHDAYS — Sen. Alex Padilla (D-Calif.) … Peter Lezama … Lyzz Schwegler … (was Thursday): Hadas Alterman ... Michael Blacher ... Matthew Broderick CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: jshapiro@politico.com.   Follow us on Twitter Dustin Gardiner @dustingardiner Lara Korte @lara_korte 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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