California begins its budget dance

From: POLITICO California Playbook - Monday Jan 10,2022 02:16 pm

Jan 10, 2022

By Jeremy B. White, Chris Ramirez and Graph Massara

THE BUZZ — AND SO IT BEGINS: Today California will launch back into the perennial debate over how to spread its wealth around — and there are abundant assets to allocate.

Like the return of migratory birds to rice fields, an annual California politics ritual will occur this morning as Gov. Gavin Newsom unveils his budget proposal for the next fiscal year. Keep in mind that this represents a prelude to a prelude: the truly important negotiations tend to start after Newsom releases his May update, which reflects more recent revenue numbers.

But the defining fiscal dimension is that we’re in a time of plenty. Months after enacting a record $262 billion budget, California’s coffers are once again overflowing, with a surplus in the tens of billions. It’s an excess ample enough that California could breach the spending cap known as the Gann limit, which would force the state to return some of that money to taxpayers. However much the budget plan morphs between today and May, it would take an abrupt economic downturn to reverse the state’s trajectory.

Newsom has already announced he wants to spend more on combating organized retail theft — a serious issue for both local elected officials and higher-profile Democrats in swing districts. He also struck a note of fiscal caution, saying he’d like to channel much of the cash back into the state’s rainy day fund.

On Saturday, the governor revealed his big ask: a $2.7 billion coronavirus package that would expand testing and vaccination efforts, send hundreds of millions of dollars to hospitals and frontline workers and help inoculate and test migrants at the southern border. Newsom wants the Legislature to speed him $1.4 billion to immediately fortify local testing capacities amid the Omicron surge. And he’s also looking to revive an expanded paid sick leave program for workers who either have Covid or are caring for stricken loved ones, which expired in fall.

What else will the governor propose? Whether it’s education or the environment or homelessness or public safety, we’ll be bringing you all the details on the first moves in this year’s fiscal dance. More for Pros this morning from our Victoria Colliver.

BUENOS DÍAS, good Monday morning. Newsom has until Friday to decide whether to parole the man who assassinated his political hero. The fate of Robert Kennedy’s killer, Sirhan Sirhan, is in Newsom’s hands.

Got a tip or story idea for California Playbook? Hit jwhite@politico.com or follow me on Twitter @jeremybwhite.

QUOTE OF THE DAY: “We are the messenger. … We are conveying to you the impossible situation we’ve been forced into by local, state and federal failure to control this pandemic.” Oakland teacher Harley Litzelman on a Friday sickout, via the SF Chronicle’s Ricardo Cano.

TWEET OF THE DAY: Republican @RichardGrenell teases a potential challenge to Rep. Ken Calvert: “It’s time for California’s Congressional District 41 to be represented by a fighter. There is too much at stake.”

WHERE’S GAVIN? Unveiling his initial budget proposal in Sacramento.

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TOP TALKERS

FIRE AND WATER — “Exclusive: Newsom’s budget would add billions to fight drought, fires and boost California farms,” by the Sac Bee’s Sophia Bollag: “The governor’s plan includes $750 million in one-time money to help communities affected by the drought, including for water conservation, water efficiency, replenishing groundwater supplies and helping small farmers. Newsom’s 2022 budget plan also includes an additional $1.2 billion to fight and prevent wildfires, on top of money approved last year. That would fund 20 new state fire crews, as well as new helicopters, fire engines and bulldozers.”

129 KILLED — “ ‘Taken for nothing’: Remembering the victims of a deadly year in Oakland,” by the SF Chronicle’s Lauren Hepler, Rachel Swan and Shwanika Narayan: “If Oakland in 2021 did not approach the higher murder tolls of the early 1990s, a sense of accumulating loss still sometimes felt inescapable.”

FAR FROM HOME — “ Wayward Sea Lion Found Miles From Ocean on San Diego Freeway — Not His First Time,” by NBC San Diego’s Karla Rendon-Alvarez: “The 200-pound juvenile male sea lion turned plenty of heads on Friday when he was spotted on the right side of state Route 94's eastbound lanes around 9:40 a.m., according to the California Highway Patrol.”

— “ Contra Costa Sheriff staff let civilians take home guns parts, ammo that had been marked for destruction,” by the Mercury News’ Nate Gartrell and Shomik Mukherjee: “The ammunition, empty magazines, holsters and gun parts were supposed to be catalogued, reported to the state Department of Justice, and either destroyed or used for official law enforcement duties, per state law.”

SICK DAY — “ More California kids are hospitalized with COVID than ever before, officials say,” by the Sac Bee’s Laura Korte: “Despite daily hospitalization numbers being higher than last winter’s coronavirus surge, hospitals are able to take on the demand, and most children are neither on ventilators nor in intensive care.”

CALIFORNIA AND THE CAPITOL CORRIDOR

SCHOOL STRUGGLES — “High Covid rates, staff shortages and confusing legislation challenge schools' reopenings,” by EdSource’s Diana Lambert, John Fensterwald and Ali Tadayon: “Superintendents facing the prospect of closing a school or the entire district report they’re confused about whether they will get state aid for the days campuses are shut down. That’s because last June, the Legislature passed a law to make it difficult for districts to close schools.”

FROM LA … “LAUSD plans to start second semester with in-person learning,” by Daily News’ Linh Tat.

… TO THE BAY — “Hayward school district reverts to temporary online instruction to weather omicron,” by SF Chronicle’s Nanette Asimov.

TEST ANXIETY — “Frustrations rise as Gov. Newsom’s vow to screen students for COVID falls short,” by the LA Times’ Melody Gutierrez, Mackenzie Mays: “How many tests were ultimately made available to families this week is still unclear. As of Friday, 17 counties still had not received any tests, according to data from the governor’s office.”

TALKS POSTPONED — “Union-District Negotiations Pushed to Next Week as Educators Call Out Sick En Masse,” by SF Standard’s Sarah Wright: “After two sessions of bargaining on Thursday, the district proposed five sick days, the amount of time the Centers for Disease Control and Prevention now recommends isolating if Covid-positive, and “to make reasonable best efforts” to supply high-quality masks for employees only.”

TEST PREP — “California student test scores dismal during COVID closures,” by Mercury News’ John Woolfolk: “Statewide assessment scores released Friday show less than half of students at or above grade level in English, only a third in math and less than a third in science, a step backward from modest gains before the pandemic in what already were troubling achievement levels.”

— “Coast Guard announces safety rules after deadly boat fire,” by the AP’s Stefanie Dazio and Brian Melley: “The Labor Day 2019 fire aboard the Conception off Santa Barbara marked the deadliest marine disaster in modern state history and led to criminal charges and calls for tougher regulations for small passenger vessels.”

— “California prison officials suspend in-person visits after spike in COVID-19 cases,” by the Sac Bee’s Sam Stanton: “The halt is effective for California Department of Corrections and Rehabilitation facilities statewide for 15 days.”

— “For people relying on medical equipment, the supply chain crisis can mean life or death,” by the SF Chronicle’s Caroline Said: “Besides shortages, medical equipment makers say their costs are soaring, with steep price hikes for shipping and for raw materials like aluminum and steel for walkers, crutches and wheelchairs and polycarbonate plastics for suction tubes.”

— “State Medical Board seeks far-reaching reforms to discipline bad doctors,” by the LA Times’ Melody Gutierrez, Brittny Mejia, Jack Dolan and Kim Christensen: “In an 11-page letter and memo sent to Legislative leaders this week, board officials also asked them to increase the waiting time for doctors to petition to reinstate their revoked licenses. The board also seeks a hike in licensing fees on doctors, its primary source of revenue.”

STEINBERG DIPTYCH — “This Northern California mayor wants to give everyone a right to housing,” by Mercury News’ Marisa Kendall: “[Mayor Darrell Steinberg’s] first-of-its-kind proposal would require Sacramento, which has committed to spending $100 million on homelessness over the next two years, to offer every homeless resident a housing placement.”

AND … “ Sacramento spends millions on homeless shelters and services. But is the crisis worse?” by the Sac Bee’s Theresa Clift: “During 2021, at least 195 unhoused people died in Sacramento County.”

— “Justice Department declines to extend PG&E probation,” by Courthouse News’ Nicholas Iovino: “PG&E has been serving a five-year probation term since January 2017 after being convicted of six crimes related to the 2010 San Bruno gas pipeline explosion that killed eight people and leveled a neighborhood.”

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SCRAPPED SURGERIES — “California weighs order canceling elective surgeries as COVID surges,” by CalMatters’ Barbara Feder Ostrov: “For now, the decision is voluntary for hospitals. But the state health department’s chief deputy director, Susan Fanelli, on Thursday told a meeting of county health officers, “We know (a directive on elective surgeries) has to be on the table.”

ABSENT — “COVID concerns fueled absences among some California lawmakers,” by the SF Chronicle’s Dustin Gardiner: “The situation highlights how the Legislature, an institution steeped in tradition, continues to struggle to adjust to the logistical challenges of the biggest public health crises in a century.”

RENT RELIEF — “California getting an additional $68 million in federal rent relief dollars,” by the Mercury News’ Jeff Collins: “The state’s rental assistance program has asked the Treasury Department for an additional $1.91 billion for rent relief and plans to ask for even more assistance in the months ahead, the state said.”

911 — “Overwhelmed by COVID surge, California city asks residents to limit 911 calls,” by the Sac Bee’s Don Sweeney: Regarding 911 calls, San Francisco is averaging 400 calls a day, a 30% spike over the average daily 300 to 330 calls. The increase, particularly driven by coronavirus cases and individuals seeking testing, puts a strain on an already thinly stretched fire department in the city.

— “New testing site claims legitimacy but can’t produce permit,” by Mission Local’s Anlan Cheney: “Community Wellness America, which is not a lab, ran into trouble in August when Marin officials shut down a site they described as unlicensed. In April 2020, public health officials in Washington state urged people to avoid ‘unusual’ testing sites operated by the company.”

— “California officials warn against price gouging of home coronavirus test kits,” by the SF Chronicle’s Jessica Flores: “Newsom’s order, including the prospect of fines or imprisonment for illegal overpricing, comes amid nationwide reports of price gouging online, with some at-home kits selling for three times the price, and attorneys general in a number of states issuing warnings.”

DATA WATCH — “Mayor London Breed Touts Tenderloin Emergency Response. But the Data Tells a Slightly Different Story,” by the SF Standard’s David Sjostedt: “The mayor’s office sent out a press release Tuesday touting successes as part of a ‘broader intervention,’ and the mayor’s spokesperson, Andy Lynch, told The Standard that the office felt ‘comfortable' highlighting certain data points because the emergency declaration helped departments collaborate in a way that was previously unachievable. In some cases this is true, but in others it appears little has changed in the Tenderloin in the first two weeks of the emergency response.”

BIDEN, HARRIS AND THE HILL

POSITIVE — “OC Congresswoman Young Kim tests positive for COVID-19,” by the OC Register’s Hunter Lee: “Kim, 59, who represents parts of Orange, Los Angeles and San Bernardino counties, said she was feeling fine and that she had received both vaccinations and a booster shot.”

ROCK BOTTOM — “Scraping bottom, Kevin McCarthy manages to sink even lower,” opines the LA Times’ Mark Z. Barabak: “For McCarthy, it all comes down to Trump, his worshipers … and a belief that voters in the former president’s thrall are indispensable to a robust GOP turnout this fall and McCarthy’s long-nurtured dream of claiming the House speakership.”

CAMPAIGN MODE

SET A DATE: Voters will go to the polls in three separate special election primaries on April 5, to fill out the remainder of the terms of former Rep. Devin Nunes, former Assemblymember Jim Frazier and erstwhile Assemblymember Lorena Gonzalez. If necessary, runoffs will be June 7, the same date as the regular primary, in which voters will be selecting candidates for a full 2022-2023 term under different district lines from the special elections. Confused yet?

ANOTHER ONE — “Longtime political figure joins race for San Jose City Council seat,” by the San Jose Spotlight’s Jana Kadah: “Kamei said the biggest issues in District 1 are public health, public safety and overall improvement of quality of life. These challenges include housing, homelessness, economic resiliency and transportation. If elected, she wants to find ways to create more open space in District 1.”

SILICON VALLEYLAND

PEDAL TO THE METAL — “Why Tesla Soared as Other Automakers Struggled to Make Cars,” by the New York Times’ Jack Ewing: “It suggests that the company, and possibly other young electric car businesses, could threaten the dominance of giants like Volkswagen and G.M. sooner and more forcefully than most industry executives and policymakers realize.”

MIXTAPE

— “North Sacramento business owner sues city over homeless vehicles on this street,” by the Sac Bee’s Theresa Clift

— “ Pandemic Puts SF Restaurants on the Ropes. Mayor London Breed Joins Coalition Calling on Congress to Extend Lifeline,” by the SF Standard’s Kevin Truong

— “Mater Dei High names new president in the wake of hazing scandal,” by the LA Times’ Hannah Fry, Connor Sheets and Laura J. Nelson.

IN THE DARK — “‘Truly a nightmare’: 11,000 Sierra Nevada residents now almost 2 weeks without power,” by the Sac Bee’s Rosalio Ahumada and Alexandra Yoon-Hendricks.

— “Pleasanton forcing restaurants to tear out popular parklets,” by Mercury News’ Joseph Geha.

GROWING PAINS — “California farmworkers now get overtime pay after 8 hours. Some growers say it’s a problem,” by the Sac Bee’s Nadia Lopez.

— “Indigenous coalition takes fight to rename town of Squaw Valley to federal board, ” by the LA Times’ Lila Seidman.

TRANSITIONS

— Kemi Giwa is starting as deputy communications director for the Financial Services Committee under Chair Maxine Waters, coming over from the office of Rep. Seth Moulton.

IN MEMORIAM

— “Bob Saget, Comedian and 'Full House' Star, Dies at 65,” by the Hollywood Reporter’s Ryan Gajewski, Ryan Parker and Abid Rahman: “The Philadelphia native is most widely remembered for playing Danny Tanner on ABC’s popular family sitcom Full House.”

— “Sidney Poitier, trailblazing star who helped break down Hollywood color barriers, dies at 94,” by Dennis McLellan in the LA Times: “His ascent was meteoric, smashing through the Hollywood color barriers during a time when Black people on the Hollywood studio lots were generally kitchen workers and janitors.”

— “ Mike Clements, veteran O.C. activist and organizer, dies at 76,” by the LA TImes’ Gabriel San Román: “Over the span of decades, the 76-year-old inspired them to create a better world — for farm workers, working-class Latinos, undocumented immigrants, the homeless, at-risk youth and students with disabilities — one campaign at a time.”

BIRTHDAYS

SUNDAY: Richard Neffson

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