Picking up where Reagan left off

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

Nov 29, 2023 View in browser   By Rachel Bluth Presented by With help from Jeremy B. White, Dustin Gardiner and Forest Hunt Programming note: There will be no California Playbook PM next week. Thanks for reading, and we’ll be back soon! PRIORITY PROJECT: Homelessness may not be Gov. Gavin Newsom’s fault. But it is his problem — and likely will define his legacy. It’s a reality that Newsom acknowledges as he turns his attention in the final years of his second term to the intertwined challenges of mental health treatment, drug abuse and emergency shelter. Newsom sees himself as picking up where Ronald Reagan left off when he governed the state from 1967 to 1971 and dismantled a flawed system that incarcerated and institutionalized the mentally ill but failed to create an adequate replacement. The Newsom administration is now working to expand treatment capacity as part of a broad overhaul of mental health treatment. The final piece of his reform package zipped through the Legislature this year over the objections of some mental health advocates. Now, the governor and his allies must persuade voters to approve changes to the state’s mental health laws and pass a $6.4 billion bond measure to help pay for the expansion of services. California Gov. Gavin Newsom signs off on two proposals in Los Angeles, Thursday, Oct. 12, 2023, to transform the state's mental health system and address the state's worsening homelessness crisis, putting them both before voters in 2024. (AP Photo/Damian Dovarganes) | AP Their sales pitch: treatment not tents. Money from the bond, along with a portion of tax revenue that previously went to county governments, would go to build new psychiatric and addiction treatment facilities. The ballot measure would also change the way counties spend their mental health budgets to focus more on housing and treating the state’s sickest residents. It is not, as the governor and plan supporters are quick to point out, a program that is exclusively aimed at homelessness. But it could start alleviating some of the state’s most visible public health and political problems — a critical goal in a state home to half the country’s unsheltered population. This isn’t the first time in recent years Californians have been asked to shell out billions to address homelessness. In 2018, the voters approved a $2 billion bond for the No Place Like Home program to build housing. The same year, the electorate approved a $4 billion bond to house veterans. Will voters go for another bond even indirectly related to homelessness? That remains to be seen. Newsom’s legacy may depend on it. 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 rbluth@politico.com or send a shout on Twitter. DMs are open. A message from Unite Us: America’s 3,000+ counties are on the frontlines of many of our nation’s most pressing challenges. As a result, they’re leading the way in discovering innovative solutions through collaborative partnerships. Join Unite Us as we hear from county and city leaders across the country—including here in California—who have unleashed innovation in government by leveraging technology solutions and community partnerships to address constituents' health-related social needs and improve service delivery.   WHAT YOU NEED TO KNOW TODAY TAX TUSSLE: A ruling today by the California Supreme Court keeps alive a challenge by Newsom and legislative leaders to a ballot initiative that would sharply restrict new taxes. The high court ordered California Secretary of State Shirley Weber and the ballot measure’s counsel to make their case for why the challenge should not proceed. That sets the stage for a broader ruling on the initiative’s validity. The initiative, sponsored by the California Business Roundtable, would require voter approval for legislatively passed taxes. It would also raise to two-thirds the vote threshold for some local taxes. The measure has qualified for the November ballot. Business groups say it would conform California’s laws with an earlier tax-limiting measure, Proposition 13. But Democratic elected officials, labor unions and cities have argued the proposal would devastate local finances and strip key powers from elected officials. Newsom, Senate President Pro Tem Toni Atkins and Assembly Speaker Robert Rivas asked the state Supreme Court to invalidate the measure, arguing it is unconstitutional. The Legislature also placed a labor-backed constitutional amendment on the 2024 ballot that would make the tax-limiting measure harder to approve. The parties must file their arguments and counterarguments by February. Weber’s office must formally place measures on the November ballot by next June. — Jeremy B. White   GET A BACKSTAGE PASS TO COP28 WITH GLOBAL PLAYBOOK: Get insider access to the conference that sets the tone of the global climate agenda with POLITICO's Global Playbook newsletter. Authored by Suzanne Lynch, Global Playbook delivers exclusive, daily insights and comprehensive coverage that will keep you informed about the most crucial climate summit of the year. Dive deep into the critical discussions and developments at COP28 from Nov. 30 to Dec. 12. SUBSCRIBE NOW.     ON THE BEATS MOD-ON-MOD FIGHT: San Francisco Mayor London Breed could soon face another moderate opponent in her reelection fight next year — a contest that’s become increasingly crowded with moderate-leaning Democrats. Political insiders have been buzzing for weeks about an effort to draft former Mayor Mark Farrell to run. He served as interim mayor for about five months in 2018 after the death of Mayor Ed Lee, before Breed won a special election. If Farrell decides to jump into the race, it would mean Breed — also a moderate by San Francisco standards — would face at least three centrist Democrat opponents in the November 2024 election, potentially splintering her vote. She already faces challenges from Daniel Lurie, a nonprofit executive and heir to the Levi Strauss fortune, and Supervisor Ahsha Safaí. Farrell, a venture capitalist, hasn’t ruled it out. He told POLITICO that he’s thinking about it. “San Francisco cannot afford to continue down the path we have been on and we all deserve better from City Hall,” he said in a statement. Breed’s campaign declined to comment. The mayor has taken an increasingly tough-on-crime approach to the city’s problems in recent months, perhaps hoping to blunt criticism from her challengers. — Dustin Gardiner   A message from Unite Us:   SHELTER FROM THE STORM: San Francisco will add 300 shelter beds this week, bringing the total beds added this year to nearly 1,500. West Coast cities have continued to struggle with a large number of people living on the street. In 2022, almost 60 percent of San Francisco’s homeless population was unsheltered, compared with a mere 3 percent in Boston or 16 percent in Philadelphia. Some homeless advocates argue that funding should be directed to permanent housing solutions rather than to emergency shelter. Central to the decision to expand shelters is intense pressure to remove large encampments in the city. A 2019 court decision has hamstrung cities' ability to disband encampments, but in her announcement, Breed highlighted a recent 9th Circuit decision that clarified that cities could eject people from encampments if they are first offered shelter. The waiting list for a shelter bed was 503 people as of this afternoon. — Forest Hunt FEINSTEIN SAGA: An eye-catching tidbit has emerged from court documents in the battle over the estate of the late Sen. Dianne Feinstein. It turns out former House Speaker Nancy Pelosi was one of two people who witnessed Feinstein sign a document granting her adult daughter, retired Judge Katherine Feinstein, limited power of attorney in her final months. Pelosi, as SFGate first reported, signed a statement attesting that the elder Feinstein was of sound mind at the time she witnessed her transfer legal authority to her daughter. The revelation is notable because attorneys representing the estate of Richard Blum, the senator’s late husband, have questioned whether Katherine Feinstein had properly been granted authority over her ailing mother’s legal affairs. Katherine Feinstein is continuing to battle the Blum trustees over claims to a portion of her stepfather’s fortune, which was worth an estimated $1 billion. Pelosi’s spokesperson declined to comment. — Dustin Gardiner   JOIN WOMEN RULE ON 12/12: For centuries, women were left out of the rooms that shaped policy, built companies and led countries. Now, society needs the creativity and entrepreneurship of women more than ever. How can we make sure that women are given the space and opportunity to shape the world’s future for the better? Join POLITICO's Women Rule on Dec. 12 for Leading with Purpose: How Women Are Reinventing the World to explore this and more. REGISTER HERE.     WHAT WE'RE CLICKING POLICING SHORT-TERM RENTALS: Hosts of Airbnbs and other short-term rentals in Los Angeles will have to acquire a permit from the police department under a new law adopted unanimously by the City Council. The permits are expected to cost about $260 and are intended to help crack down on rowdy party houses and illicit activities. (Los Angeles Times) NEW ARRIVALS: California is still the No. 1 destination in the U.S. for foreign nationals, with 125,715 arriving last year, according to an analysis by The Mercury News. No. 2 was Florida. (The Mercury News) A message from Unite Us: During this webinar, you'll hear from leaders who are leveraging technology to drive change in: Merced County, California; Summit County, Ohio; Santa Fe County, New Mexico; and the City of Santa Fe, New Mexico. We'll dive into: Success Stories: Discover how county leaders are using technology to improve government services and the health outcomes of their residents. The Power of Collaboration: Learn about the partnerships and networks that are driving collective impact beyond county borders. Expert Insights: Gain valuable insights and lessons learned from experienced leaders. From addressing the opioid crisis to meeting social care needs in the community and in public schools, our panelists have a wealth of knowledge to share. Don't miss out on the chance to be part of this important conversation!     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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