Assembly Dems buck Newsom’s budget

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

Apr 02, 2024 View in browser   By Blake Jones COUNTEROFFER: It’s divided government, California-style. The Democratic-controlled Assembly is at odds with the Democratic-controlled Senate over Democratic Gov. Gavin Newsom’s plan to close the $38 billion deficit. Assembly leaders during a Democratic caucus meeting today circulated their plan to take early budget action to shrink the state shortfall — a copy of which was obtained by POLITICO. And while the $17 billion batch of spending cuts, delays and deferrals shares a lot of similarities with the proposals of Newsom and the state Senate, it has key differences. Most notably, it rejects taking early action to cut housing and homelessness funding, reductions forwarded by the governor in January. And it calls for a freeze on one-time funding that has not yet been disbursed, something Assembly leaders argue will give them more flexibility during final negotiations in June. Cynthia Moreno, spokesperson for Assembly Speaker Robert Rivas, confirmed in a statement that the plan was shared with caucus members and that it includes the spending freeze and rejects homelessness spending cuts proposed by Newsom. California Assembly Speaker Robert Rivas | Rich Pedroncelli/AP Photo “It also reflects member feedback and the Assembly’s careful, deliberative process,” Moreno said. “The Speaker looks forward to refining this plan further in conversation with the Senate and administration." The package doesn’t represent a final agreement on early action cuts with the state Senate and Newsom. Yet it offers insight into the priorities of Rivas and his allies, who are presiding over their first budget cycle under inopportune circumstances. It also represents significant movement toward a deal before Newsom offers a revised budget proposal in May. The state has received mixed-financial news in the run-up to that address, including March personal income taxes that came in $300 million above projections. “We're waiting for the new cash numbers not only from March, but the key one’s in April, and then we'll have a very tight timeline between that and the May revise and that will reveal itself,” Newsom told reporters this morning. Newsom said he may collapse his presentation of the so-called May Revision into his State of the State address — which he delayed giving while the result of his signature Prop 1 was still uncertain. He noted today that the narrowly passed mental health ballot measure will impact the budget. "And now we have clarity and so we will have a lot more to say on that and the budget,” Newsom said, noting he would defer to the Legislature on timing. 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 bjones@politico.com or send a shout on X. DMs are open.   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.     WHAT YOU NEED TO KNOW TODAY BUILDING A CASE: A Los Angeles school district policy limiting charter schools’ ability to share school buildings violates state law and will harm vulnerable students, the California Charter Schools Association alleged in a lawsuit Tuesday. The CCSA is seeking an immediate halt to the new rules, which it argues will force single charter schools to spread their students across multiple buildings, sometimes far from where students live. Such a situation, the charter schools contend, would create unequal access to school facilities in violation of Prop 39 — a statewide ballot measure passed in 2000 that guaranteed charter students access to facilities equivalent to their peers in traditional schools. ON THE BEATS Gov. Gavin Newsom joined officials today to measure snowpack levels in the Sierra Nevada. | California Department of Water Resources NOT SO NORMAL: California’s water supplies are in good shape heading into spring and summer, Newsom said today, with statewide snowpack levels at 105 percent of average for this time of year and major reservoirs full. We won’t always be this lucky though, noted Newsom, who joined state water managers conducting their monthly snow survey in the Sierra Nevada. This year’s snowfall has become the outlier as climate change pushes weather to vacillating extremes. Last winter brought a record-setting series of storms that left the snowpack more than double average levels, spurring floods in low-lying communities. The previous five years were droughts. “The water system in California was designed for a world that no longer exists,” he said. “The hot's getting a lot hotter, the dry's getting a lot drier and the wet's getting a lot wetter.” — Camille von Kaenel IN MEMORIAM Ed Schiff, the father of Rep. Adam Schiff, has died. The Army veteran, affectionately known as “Boca Eddie," was 96.   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.     WHAT WE'RE READING TODAY HOUSING HURDLES: Despite high demand for housing, permits to build new homes fell 7 percent in California last year for reasons that include higher labor and materials cost, and more expensive financing. (Los Angeles Times) WINNING A ROUND: California Forever, the billionaire-backed effort to build a new Bay Area city, scored a legal victory when a federal judge declined to dismiss a suit filed by the developer alleging price fixing by rural property owners. (The Mercury News) AROUND THE STATE BIG SUR: The nonprofit Keep Big Sur Wild says the area is overrun by visitors and has asked the Monterey County Planning Commission to halt new lodging developments. (San Francisco Chronicle) SAN DIEGO: A Biden administration appointee to the bi-national International Boundary and Water Commission has vowed to increase oversight of treatment operations in Mexico to address persistent cross-border sewage spills. (Voice of San Diego)   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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