Why a former Newsom aide walked away from this ballot measure

Presented by SEIU-UHW: Your afternoon must-read briefing on politics and government in the Golden State

Jun 13, 2024 View in browser   By Rachel Bluth Presented by SEIU-UHW California Gov. Gavin Newsom unveils his revised 2024-25 state budget during a news conference in Sacramento, Calif., Friday, May 10, 2024. | AP/Rich Pedroncelli OF BUDGETS AND BALLOTS: If a recent staffing move is any indication, things are looking tense for a health care tax ballot measure backed by some of Gov. Gavin Newsom’s closest allies. Newsom has yet to take a position on the November measure, which would require the state to spend billions of dollars in insurance plan tax proceeds on Medi-Cal. But his former chief of staff Jim DeBoo stepped away from the initiative campaign, saying he didn’t want to be involved if the coalition pushing the initiative and the governor’s office were at odds over it. “My agreement with the coalition from last March was always [that] if the Administration and coalition couldn’t reach an accord, I wouldn’t continue working on the measure,” DeBoo said in a text message to POLITICO, after a health care executive accused him of being pressured to resign. A coalition of major health care interests — including doctors, hospitals, health insurers and Planned Parenthood — has been advocating to use proceeds from the Managed Care Organizations tax on some health insurance plans to boost pay for doctors and hospitals in the state’s Medicaid program. And last summer, the health care players reached a deal on how the $19 billion — plus associated federal funds — would be spent. The November ballot measure would enshrine those spending requirements into law, making it difficult, if not impossible, for governors to tap the multibillion-dollar tax to backfill budget deficits — as Newsom proposed in his budget plan. The ballot measure coalition has publicly excoriated Newsom for his move on the budget. Still, it maintains DeBoo’s departure was a planned part of routine staffing changes and didn’t stem from any discord between the campaign and Newsom. The coalition is in the delicate position of trying to pressure Newsom on the budget, but sway him on the ballot measure. “Those are tense conversations because it’s a big policy issue,” said Jodi Hicks, the CEO of Planned Parenthood Action California and a leader of the ballot measure coalition. “All of the conversations are complicated, if we want to describe them as ‘tense,’ it's not because it's anything nefarious.” “We’re running a campaign where we’re actively trying to get support, but the governor has never said he’d be supportive of an initiative,” Hicks added. IT’S THURSDAY 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 rbluth@politico.com.   A message from SEIU-UHW: The Healthcare Minimum Wage Law is set to give hundreds of thousands of our caregivers a raise on July 1st. This pay increase is long overdue for workers and more important than ever for patients, whose care is being jeopardized every day by the short staffing crisis. A $25/hour minimum wage will ensure that facilities across the state can retain experienced staff and attract new workers to the field. Learn more.   WHAT YOU NEED TO KNOW TODAY CRUNCH TIME: Legislative Democrats this morning passed initial budget bills ahead of a June 15 deadline, but the real action is coming soon. Senate leader Mike McGuire instructed his chamber to be prepared to vote on additional budget legislation next week in a clear sign of progress toward a full deal with Newsom. More bills are expected to be in print in the coming days. The package passed Thursday only reflects the Legislature’s proposal for the budget rather than an agreement with the governor, who is unlikely to sign it as written. Lawmakers typically pass additional legislation to reflect a full agreement once one is reached. The details of the final agreement remain under wraps and are apparently still evolving. But when they come, they’ll reconcile virtually every difference between the Legislature and governor’s proposals — putting a set of spending cuts and tax break limitations on a fast-track to passage. — Blake Jones   HAPPENING 6/18 — A TALK ON THE FUTURE OF TRANSPORTATION IN CA: California’s adoption of zero-emission vehicle policies will change the transportation landscape over the next two decades. How will the transition impact current transportation infrastructure and how will lawmakers fund future changes? Join POLITICO on June 18 to hear from lawmakers, industry officials and stakeholders to examine the future of transportation infrastructure, from transit, pedestrian and bike lanes to local streets, roads, highways, bridges and overpasses. REGISTER HERE.     IN OTHER NEWS ABORTION MEDICATION ACCESS: California’s elected officials are celebrating today’s unanimous Supreme Court ruling to maintain access to the abortion pill mifepristone. “No matter how many lawsuits they file or challenges they bring, they cannot change the facts: mifepristone is safe and effective — so safe, in fact, that it carries a lower risk of serious complications than taking Tylenol or undergoing a colonoscopy,” Attorney General Rob Bonta said in a statement following the ruling. State Sen. Toni Atkins, who worked as the director of a women’s health clinic in the 1980s, said in a statement that the ruling was a “tremendous relief” but noted that abortion access is still out of reach for much of the country. “If this case taught us anything, it’s that blocking access to scientifically-proven, safe medications and medical procedures is a priority for the anti-abortion movement and they will continue to pursue putting women and their families in danger.” Last year, Newsom announced that the state would stockpile the other drug used in medication abortion, misoprostol, which can be used to end a pregnancy on its own if mifepristone becomes unavailable. Boxes of the drug mifepristone sit on a shelf at the West Alabama Women’s Center in Tuscaloosa, Alabama, on March 16, 2022. | Allen G. Breed/AP FENTANYL CRACKDOWN: Newsom is more than doubling the number of California National Guard service members deployed statewide to stem transnational trade of illegal narcotics, including fentanyl, his office said today. The increase from 155 to nearly 400 service members is a marked expansion from the 30 troops Newsom first deployed in 2022. CalGuard’s Counter Drug Taskforce has already seized more than 5.8 million pills containing fentanyl this year, Newsom’s office said last month. — Tyler Katzenberger   A message from SEIU-UHW:   WHAT WE'RE READING TODAY — Kevin McCarthy’s expensive revenge tour is starting to raise doubts with House Republicans. (POLITICO) — Three moms evicted from Sacramento homeless shelters in February say their kids are paying the price. (Sacramento Bee) — Move over, California: Michigan is now America’s top cannabis market by sales volume. (Detroit Free Press) AROUND THE STATE — Inside the luxury travel habits and employee revolt behind a San Francisco aquarium nonprofit’s downfall. (San Francisco Chronicle) — The aging Diablo Canyon nuclear plant could spike PG&E bills if left operational. (The Mercury News) — A company looking to bring high-speed internet to Catalina Island hopes the state will fund its effort. (LAist) — compiled by Tyler Katzenberger   A message from SEIU-UHW: California’s short staffing crisis affects patients everywhere by delaying care and putting unsustainable strain on our caregivers. With the skyrocketing cost of living we’re seeing across California, it’s more important than ever to make sure healthcare workers are being paid a liveable wage. Not only will that help hundreds of thousands of workers take care of their families, it will improve patient care by keeping caregivers on the job and encouraging more Californians to join the industry. Additionally, the impact on the state budget has been exaggerated, with much of the costs predicted to be offset by workers no longer relying on state-funded services like Medi-Cal after receiving higher wages. See this in-depth UC Berkeley Labor Center report for more details.     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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