|
Presented by Californians for Solutions to Homelessness and Mental Health Support: Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State | | | | |  | | By Jeremy B. White, Lara Korte, Chris Ramirez and Juhi Doshi | Presented by Californians for Solutions to Homelessness and Mental Health Support | THE BUZZ — A Tax Day question: How do voters feel about tax hikes in an era of inflation? Tax wariness, like gasoline prices, is on the rise. A new Berkeley IGS poll found about two-thirds of voters felt their combined state and federal obligations were too high, a double-digit jump since April 2022. Majorities of every ethnic group, age bracket and political party (including no-party-preference) agreed. Those findings were consistent with a Public Policy Institute of California poll that found a sharp jump in the share of California voters who call the state’s tax structure unfair — and an increase in those who believe they’re paying too much overall — from 2021 to 2022. Neither poll delves into specific drivers of discontent. It’s worth noting that one of the most significant tax shifts in the last few years has emanated from D.C., not Sacramento: Former President Donald Trump’s tax cut package caused controversy in California in particular because it capped state and local tax deductions. House Democrats like Rep. Katie Porter have clamored to undo the bill’s changes, and Gov. Gavin Newsom signed a workaround into law last year. The most substantial state-level hike in recent years was a 2017 gas tax increase, which has come under fierce criticism lately as lawmakers look to offer relief for soaring fuel costs. This is unlikely to be a good year for state lawmakers to levy or increase taxes. The needed two-thirds vote is a high hurdle to surmount even in a non-election year, Democratic supermajorities notwithstanding. The headwinds Democrats have to navigate this year make it even more so. That’s a major reason a single-payer health care proposal was widely seen as DOA, and why it’s unlikely a wealth tax proposal will get anywhere near a floor vote. But the 2022 ballot could be a different story. Three proposals to increase or limit taxes have cleared the 25 percent signature threshold as they aim for the November ballot. Two would raise income taxes on top earners, who under California’s progressive tax structure already supply an outsize amount of the state’s revenue : One measure bankrolled by cryptocurrency financiers and philanthropist Cari Tuna would fund pandemic early detection by taxing Californians making more than $5 million; another, predominantly funded by Lyft, would channel higher taxes on people making over $2 million to low-emission vehicle infrastructure. A tax on single-use packaging producers to fund a plastics recycling overhaul has already qualified. On the other side of the ballot tax spectrum stand business groups, led by the California Business Roundtable. They’re backing a measure to require voter approval for Legislature-passed taxes and raising the threshold for local voter-approved taxes. Local government groups and organized labor have vociferously unified against this one, telegraphing an expensive brawl if it makes the ballot — although the higher signature bar of nearly a million makes it a longer reach. Inflation is quite clearly squeezing California voters. If a long-sought commercial property tax increase couldn’t pass in 2020, despite enormous Democratic turnout and a well-funded campaign, tax antagonists’ reasoning goes, why would 2022 tax initiatives play out differently? We may yet get a chance to find out. BUENOS DÍAS, good Monday morning. State lawmakers return from spring recess today with a busy schedule ahead of them: The May budget revise — which launches a critical fiscal negotiation phase — and the deadline to get bills out of their original houses are weeks away. Got a tip or story idea for California Playbook? Hit us up jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte. QUOTE OF THE DAY: “ I went in anticipating: ‘Who is going to care that I’m Jewish?’ I didn’t expect to feel the way I felt about being in this role.” First gentleman Douglas Emhoff on being the first Jewish White House principal, via POLITICO. TWEET OF THE DAY: Tesla CEO @ElonMusk on an evolving power struggle within a certain social media site: “Wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders.” WHERE’S GAVIN? Nothing official announced. | | | | A message from Californians for Solutions to Homelessness and Mental Health Support: Our initiative is the only one on the November ballot that will generate hundreds of millions of dollars each year to fight homelessness and fund mental health and addiction treatment in California. Nearly half of the country has legalized online sports betting, proving states can do so safely and responsibly - and generate significant tax revenue. Add your name to support a permanent funding solution to address California’s homelessness crisis. | | | |  | Top Talkers | |
HELL OF A SUBTWEET — “Twitter board adopts ‘poison pill’ after Musk’s $43 billion bid to buy company,” by CNBC’s Lauren Feiner: “Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount.”
— He wants to destroy Elon Musk. He could end up endangering the Dems’ Senate plans, by POLITICO’s Christopher Cadelago: Democrats fear that Dan O’Dowd’s ad campaign alone could land him in a runoff — potentially complicating what until now was viewed as a straightforward path forward for Sen. Alex Padilla. WHAT COMES NEXT — “ Dianne Feinstein Is the Future of the Senate,” by The Atlantic’s David A. Graham: “The question of what to make of senators like Feinstein, who have no desire to leave the Senate but whose ability to do the job is in doubt, is not new. But no one has come up with any good answers so far, and the matter will become only more pressing as Americans live longer and the average age of senators advances.”
| | CAMPAIGN MODE | |
CHANGE OF PLANS — Crime upstages progressive priorities in Los Angeles mayor's race , by POLITICO’s Alex Nieves and Lara Korte: As Democrats across the nation brace for bruising fights at the polls, law and order is dominating the political discourse — and deep blue Los Angeles is no exception.
— “Caruso says he paid $1.6 million in income tax over five years, but won’t release returns, ” by the LA Times’ James Rainey: “The declarations from Caruso come a little more than three weeks after one of his rivals for mayor, City Atty. Mike Feuer, challenged the businessman during a debate at USC to match Feuer by releasing five years of his tax returns.” HITTING BACK — “ Jay Chen should know better than to mock immigrants like me: Michelle Steel,” Steel writes in the OC Register. | | | | DON'T MISS ANYTHING FROM THE 2022 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is excited to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage and insights from the 25th annual Global Conference. This year's event, May 1-4, brings together more than 3,000 of the world’s most influential leaders, including 700+ speakers representing more than 80 countries. "Celebrating the Power of Connection" is this year's theme, setting the stage to connect influencers with the resources to change the world with leading experts and thinkers whose insight and creativity can implement that change. Whether you're attending in person or following along from somewhere else in the world, keep up with this year's conference with POLITICO’s special edition “Global Insider” so you don't miss a beat. Subscribe today. | | | | |
| | CALIFORNIA AND THE CAPITOL CORRIDOR | | FISH OUT OF WATER — “A vast California lake is set to run dry. Scientists are scrambling to save its endangered fish,” by the SF Chronicle’s Kurtis Alexander: “Today, the Lost River sucker, known as C’waam, and the shortnose sucker, known as Koptu, cumulatively number fewer than 30,000 fish. That’s down from more than 100,000 six years ago.” — “Bay Area, California job gains slow down dramatically in March,” by the Mercury News’ George Avalos: “One bright spot: California’s unemployment rate improved significantly in March, decreasing to 4.9% compared with 5.3% in February, and the best level for the key economic benchmark since the coronavirus erupted.” TENDER CARE — “Mayor Breed promised to bring tough love to the troubled Tenderloin. Did she deliver? ” by the SF Chronicle’s Mallory Moench: “Critics say Breed’s hard-line statements were mere posturing in response to political pressure amid a re-election campaign.” HOUSING — “Success of Gavin Newsom’s plan to tackle severe mental illness could hinge on California’s housing efforts ,” by SF Chronicle’s Sophia Bollag: “The plan would create a system called Care Court that would allow for family, community members, probation officers and others to refer people for services if they have schizophrenia or another mental illness. People could also be brought into the system if they are suspected of a crime or about to be released from an involuntary hold at a psychiatric facility.” IT’S THE ECONOMY … “ Everyone has a theory of why crime is rising. This one doesn't get discussed enough,” opines the LA Times’ Erika D. Smith: “Not all economic desperation leads to crime, of course. But are we really surprised that, according to the LAPD, a small subset of poor people from South L.A. have brazenly turned to armed robberies to even the score?” — “Cambodian Man’s Rare Journey To Freedom Held Up As Goal For Other Immigrants In Prison,” by the LAist’s Josie Huang: “Immigrant rights activists in the Southeast Asian community have long argued that non-citizens are double-punished for crimes often committed when they were teens and young men from refugee families living in impoverished, dangerous neighborhoods, where joining gangs offered protection and acceptance.” — “L.A. Unified’s fall 2022 vaccine mandate in question as state delays its requirement, ” by the LA Times’ Melissa Gomez: “Under the policy, unvaccinated students would not be allowed on campus and thousands would have been transferred into the district’s independent study program, City of Angels, which was already struggling at overcapacity.” — “ Toxic shower water. Sewage pits. ‘Infuriating’ woes in east Coachella Valley mobile parks,” by the Desert Sun’s Janet Wilson and Eliana Perez: “Low-income residents at the small park and others like it told The Desert Sun they've long endured foul-smelling water and have had to buy gallons of clean water for years to try to stay safe.” OH NO, MONO — “ As drought hammers Mono Lake, thirsty Los Angeles must look elsewhere for water,” by the LA Times’ Louis Sahagún and Ian James: “The last time Mono Lake fell below the same threshold was from 2015 to 2017, in the final years of California’s last severe drought.” | | | | A message from Californians for Solutions to Homelessness and Mental Health Support:   | | | | | BIDEN, HARRIS AND THE HILL | |
BAILING EARLY — McCarthy losing House GOP dealmakers as he eyes speakership , by POLITICO’s Sarah Ferris and Olivia Beavers: One example of how much the House GOP has changed: Out of 133 members who voted to raise the debt limit the last time their party held the majority, only 33 are seeking reelection this fall.
PRESIDENTIAL PASSOVER — ‘I Didn’t Expect to Feel [This] Way’: An Afternoon Making Matzo With Doug Emhoff, by POLITICO’s Sam Stein: “He is the first male in his role and the first person of the Jewish faith among the four White House principals (president and vice president and their significant others).” — Kamala Harris keeps traveling to unconventional places. Here’s why, by POLITICO’s Eugene Daniels: Administration officials contend that the symbolism of a vice presidential trip matters, and that when it’s tied with some larger announcement, it has a clear downstream upside. | | HOLLYWOODLAND | | — “Disney, Built on Fairy Tales and Fantasy, Confronts the Real World,” by NYT’s Brooks Barnes: “[I]n recent years, there has been a noticeable change. Robert A. Iger, who served as chief executive from 2005 to 2020, pushed the world’s largest entertainment company to emphasize diverse casting and storytelling.” | | | | INTRODUCING DIGITAL FUTURE DAILY - OUR TECHNOLOGY NEWSLETTER, RE-IMAGINED: Technology is always evolving, and our new tech-obsessed newsletter is too! Digital Future Daily unlocks the most important stories determining the future of technology, from Washington to Silicon Valley and innovation power centers around the world. Readers get an in-depth look at how the next wave of tech will reshape civic and political life, including activism, fundraising, lobbying and legislating. Go inside the minds of the biggest tech players, policymakers and regulators to learn how their decisions affect our lives. Don't miss out, subscribe today. | | | | | | | SILICON VALLEYLAND | |
HOT NEW SILICON — “The Chips That Rebooted the Mac,” by the Wall Street Journal’s Tim Higgins: “The turnaround is due to an unusual, yearslong effort to build one of the world’s most advanced chip-design operations inside the world’s best-known gadget maker.”
— “Musk bid for Twitter underscores the risks of social media ownership,” by the WaPo’s Joseph Menn, Cat Zakrzewski and Craig Timberg: “Putting so much power in the hands of one company is bad enough, but putting it in the hands of one person, as is largely the case with Facebook shareholder Mark Zuckerberg and would be the case if Twitter were owned by Musk, would be incompatible with democracy, [critics say.]”
| | MEDIA MATTERS | |
— Longtime San Francisco Public Press journalist Nuala Bishari is starting as a columnist and editorial writer for the SF Chronicle.
| | Transitions | | — Ben Suarato is now director of comms, branding and marketing at Dream Corps. He previously was comms director for Rep. Judy Chu (D-Calif.) and the Congressional Asian Pacific American Caucus.
| | MIXTAPE | |
— “DA Gascón derailed veteran prosecutor’s career amid media storm over rapist’s bid for early release,” by the LA Daily News’ Scott Schwebke.
— “Santa Ana police blasted Disney songs to prevent a resident from filming them,” by the OC Register’s Roxana Kopetman. — “ College admission season wraps up with a rejection party, a paper shredder and joy,” by the LA Times’ Teresa Watanabe: — “ California medical board to investigate 2-year-old’s death at John Muir Medical Center,” by the SF Chronicle’s Matthias Gafni and Cynthia Dizikes. — “Dodgers’ Dave Roberts calls out MLB for reducing opportunities for Black players, ” opines the LA Times’ Bill Shaikin. — “Strippers in North Hollywood Are Twerking for Their Rights,” by Kock LA’s Nessa Moreno. — “A U.S. agency is advertising a target dummy that resembles a Black man. An Oakland artist wants that to stop,” by SF Chronicle’s Justin Phillips.
| | WELCOME TO THE WORLD | | — Frances Lanzone, manager of social impact, executive engagement and philanthropy at Amazon Web Services and a POLITICO and Obama White House alum, and Giuseppe Lanzone, co-founder and CEO of Peruvian Brothers and a former Olympic rower, on Tuesday welcomed Gisella Mia Lanzone.
| | BIRTHDAYS | | Amazon’s Brian Huseman … Protocol’s Max Cherney … Erin Weibel — SUNDAY: Dean Lieberman of the White House … Jackie Whisman of the Information Technology and Innovation Foundation … Jonathan Simons … Valentina Cano … Barry Schreiber ... John E. Frank — SATURDAY: Frances Lanzone of Amazon … Heather Purcell of GoBiz … Ellen K. Finestone … Matt Saunders … Arezu Kay
| | | | A message from Californians for Solutions to Homelessness and Mental Health Support: Our initiative is the only one on the November ballot that will generate hundreds of millions of dollars each year to fight homelessness and fund mental health and addiction treatment in California. Nearly half of the country has legalized online sports betting, proving states can do so safely and responsibly - and generate significant tax revenue. Our initiative will also provide millions each year and new economic opportunities for California Tribal nations. Add your name to support a permanent funding solution to address California’s homelessness crisis. | | |
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 -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 | | | | 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 | | | | |  |
