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Presented by California Health Care Foundation: Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State | | | | |  | | By Lara Korte, Jeremy B. White, Juhi Doshi and Chris Ramirez | Presented by California Health Care Foundation | THE BUZZ — CONFIRMATION WOES: Los Angeles Mayor Eric Garcetti’s path to becoming the U.S. ambassador to India is looking more and more narrow. Since President Joe Biden nominated Garcetti for the job back in July, questions about his knowledge of a sexual harassment scandal in his office have loomed over Senate confirmation hearings. In 2020, a Los Angeles police officer who had worked as Garcetti’s bodyguard filed a suit against the city, claiming he was repeatedly sexually harassed by the longtime aide Rick Jacobs, and that Garcetti knew but declined to intervene. Jacobs has denied ever harassing the officer and Garcetti denied witnessing or being aware of any sexual harassment. But on Tuesday, Republican Sen. Charles Grassley of Iowa published a 23-page report concluding Garcetti “likely knew or should have known that Rick Jacobs was sexually harassing multiple individuals and making racist comments towards others.” Grassley’s investigation was based on interviews with 15 witnesses, 26 depositions from a civil suit against Jacobs and two reports into the matter commissioned by the City of Los Angeles. Both Jacobs and Garcetti declined to be interviewed for the investigation, the report said. In a statement on Tuesday, a spokesman for the mayor criticized the report as being based “solely on false, repackaged allegations that have been proven false by multiple unbiased investigations and reviews.” “Mayor Garcetti strongly reaffirms the simple truth that he never witnessed or was made aware of sexual harassment,” Dae Levine, chief communications officer for Garcetti, said. Testimony from staffers indicated that Jacobs’ alleged sexual harassment was widely known at City Hall, the report said. The investigation pointed to previously-published screenshots of text messages between Garcetti staffers detailing the alleged harassment and worrying that any public acknowledgement could “bring down” the mayor. It also points to an infamous picture of Garcetti standing with Jacobs and several others at a 2017 conference in Miami. In the photo, Jacobs has his hand over the genitals of a consultant. “It is difficult for investigators to believe that senior staff would not alert Mayor Garcetti of such a damning photo unless this type of behavior was normalized and known to the Mayor,” the report said. The White House quickly rebuked Grassley’s findings, calling the report a “partisan hit job” and saying that Biden still stands behind Garcetti’s nomination. “Mayor Garcetti has been clear that he takes any allegations of harassment very seriously and that this type of misconduct is unacceptable in his office in any form,” the White House said in a statement. “He has also said under oath that he never witnessed this behavior.” With the publication of the report, Grassley’s hold on the process is lifted. Garcetti in a statement said he is hopeful his nomination will go before the Senate soon. BUENOS DÍAS, good Wednesday morning. Whither direct democracy in California? Ballot initiatives and recalls will be the topic of discussion for Secretary of State Shirley Weber, Public Policy Institute of California president Mark Baldassare and Initiative & Referendum Institute president John Matsusaka at a Zocalo Public Square event today — you can follow along here. 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 do think that it was not correct to ban Donald Trump. I think that was a mistake because it alienated a large part of the country, and did not ultimately result in Donald Trump not having a voice.” Twitter buyer Elon Musk says it was wrong to boot former President Donald Trump. BONUS QOTD: “He will be the only male speaking today, and it’s largely because he held my hand when I made that decision when I was 21 years old.” Assemblymember Mia Bonta (D-Oakland) speaking about her husband, Attorney General Rob Bonta, being there when she chose to have an abortion. WHERE’S GAVIN? Nothing official announced. | | | | A message from California Health Care Foundation: Nearly half of Californians postponed health care in the last 12 months due to rising costs—with many saying their health worsened as a result. What can California learn from other states about how to address rising health care costs? Find Out Here! | | |
|  | Top Talkers | |
NO CHARGES — “Mike Tyson will not face charges following SFO altercation,” by the San Francisco Chronicle’s Rachel Swan: “Former heavyweight boxing champion Mike Tyson will not face charges for allegedly punching a man in the face on a flight preparing to depart from San Francisco International Airport, the San Mateo County District Attorney announced Tuesday.
— “The NRA Knows It’s Impeding Gun Research ,” by the Trace’s Will Van Sant: “A year before gun rights groups sued to stop California from collecting information on firearms ownership, the NRA’s chief researcher acknowledged that its advocacy prevents accurate studies.” DRIER THAN EVER — “Facing a new climate reality, Southern California lawns could wither ,” by the Washington Post's Joshua Partlow: “The relentless dry spell that is withering the American West is steadily warping normal life. Major reservoirs have baked down to record lows and are still dropping, threatening the ability to generate hydropower. Farming regions that fill the country’s produce aisles are being forced to leave fields fallow, unable to irrigate. The warming climate is fanning wildfires and melting off the mountain snowpack that millions rely on for their drinking water.” | | CAMPAIGN MODE | | ENDORSEMENT ALERT — “Recall of Chesa Boudin just got its first endorsement from an elected S.F. official,” by SF Chronicle’s Megan Cassidy: “ District Two Supervisor Catherine Stefani became the first San Francisco elected official to publicly support the removal of District Attorney Chesa Boudin, a progressive prosecutor facing a highly contentious recall election on June 7.” ABORTION TAKES CENTER STAGE — “Why backers of Democratic Attorney General Rob Bonta are trying to help the most anti-abortion candidate in the race ,” by the SF Chronicle’s Joe Garofoli: “...pro-Bonta forces are playing some three-dimensional political chess. The two pro-Bonta ads they created are now running on conservative talk radio stations throughout California also feature — sometimes in a kind of oddly neutral way — the most conservative candidate in the attorney general’s race, Eric Early.” LABOR LUCRE: Ballots are moving — and so is major union campaign cash. The California Teachers Association has dropped $500,000 into a labor-funded committee backing incumbent Attorney General Rob Bonta, who is fending off multiple opponents looking to anchor the incumbent to crime concerns. The PAC had already drawn $500,000 from SEIU. And another education union organization, the California School Employees Association, dropped $500,000 into a committee seeking to shore up State Superintendent of Public Instruction Tony Thurmond’s re-election prospects. MONEY MOVES — “Where L.A. mayoral candidates raise the most money,” by the Los Angeles Times’ Sandhya Kambhampati and Iris Lee: The Times analyzed where donations are coming from, finding patterns in the pockets of support received across the state. The Westside gave the most to the mayoral candidates, with large contributions coming from Brentwood and Pacific Palisades, as well as Beverly Hills — a separate city whose residents will not be voting in the L.A. election.” | | | | STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today. | | | | | | | CALIFORNIA AND THE CAPITOL CORRIDOR | |
PLASTICS FIGHT — Recycler's checkered past is weaponized in plastics fight, by POLITICO’s Debra Kahn: Plastics companies trying to fend off a California ballot initiative to boost recycling are bringing up its ties to a San Francisco waste hauler that pleaded guilty last year to bribing city officials.
— “California Democratic supremacy tested by crime, inflation,” by the Associated Press’ Michael R. Blood: “Mail ballots are already going out for the June 7 primary election that will set the stage for November runoffs. The election is taking place within a cauldron of dicey political issues: the possible repeal of the Supreme Court’s 1973 Roe v. Wade decision that legalized abortion, widespread frustration with a homelessness crisis and with residents suffering pocketbook stress from galloping inflation and soaring home costs — the state’s median price hit a record $849,080 in March.” — “ California lawmakers confront union labor stalemate holding up housing bills,” by SF Chronicle’s Dustin Gardiner: “But the union labor debate has taken on a new magnitude this year as lawmakers consider a bill that could allow for fast-tracked development of affordable and mixed-income housing in commercial areas, such as parking lots, strip malls and office parks.” PAGING DR. KERMIT — “Tom McClintock’s old district is GOP territory. But a Democrat is coming on strong,” by the Sacramento Bee’s David Lightman: “Republicans badly need the Third District congressional seat to win control of Congress in November, a goal that will require a net gain of five seats in the House.” WATER WAYS — “California urban water use rose 19% in March despite worsening drought,” by the LA Times’ Jaimie Ding: “When compared to March 2020 — the year the current drought began — average water use in cities and towns across the state increased 18.9%, according to the California State Water Resources Control Board.” — “UCSD student accused in shooting of CHP officer pleads not guilty by reason of insanity,” by the San Diego Union Tribune’s Teri Figueroa: “ A UC San Diego physics graduate student pleaded not guilty by reason of insanity Tuesday to attempted murder of a peace officer stemming from an incident last month when a CHP officer was shot during a struggle over his gun along a busy freeway in Mission Valley.” MORE COVID GRIFTING? — “This company was accused of exploiting the coronavirus testing boom to reap millions ,” by the LA Times’ Emily Alpert Reyes and Melody Petersen: “The company and its chief executive are poised to pay over $22 million to settle the claims from the L.A. city attorney and district attorney. Toll reached a separate settlement for nearly $4 million announced by authorities.” — “ Advocates push for release of women’s prison abuse victims,” by the AP’s Michael Balsamo and Michael R. Sisak: “A national criminal justice advocacy group is pushing the Justice Department to support the release of women who were sexually abused by staff at a federal women’s prison in California.” #TRAINLIFE — “ New state legislator takes train between SF, Sacramento,” by Kron 4’s John Ferrannini: “But Haney, who lives in the city’s Tenderloin neighborhood and represented District 6 from 2019 to 2022 on the San Francisco Board of Supervisors, has a solution — the Capitol Corridor train, an Amtrak passenger train that runs between San Jose and Auburn, with stops in Sacramento and Emeryville, on the San Francisco Bay.” | | | | A message from California Health Care Foundation:   | | | | | BIDEN, HARRIS AND THE HILL | | — “Where does student loan forgiveness stand? Borrowers wait anxiously on Biden,” by the LA Times’ Arit John: “Now, ahead of the midterm elections, the Biden administration must come up with a student debt relief plan that doesn’t contribute to concerns over inflation while being generous enough to satisfy borrowers who’ve had a preview of what debt cancellation might look like. After months of delays, President Biden is expected to announce in coming weeks that the government will forgive at least $10,000 in debt for people making less than $125,000, according to news reports.
— “ For Financial Help and Counsel, Hunter Biden Turns to Hollywood Lawyer,” by the New York Time’s Kenneth P. Vogel and Michael S. Schmidt: Faced with financial pressure and a federal investigation into his taxes and foreign consulting work, Hunter Biden has turned for money and strategic advice to an unlikely source: a wealthy Hollywood lawyer and novelist best known for brokering a lucrative licensing deal for the animated series “South Park.”
| | SILICON VALLEYLAND | |
TOUGH LUCK, ELON — “Tesla Among Biggest Losers as China’s Car Sales Fall on Covid Lockdowns,” by the Wall Street Journal’s Selina Cheng: Car sales in China declined 36% in April from a year earlier, the worst fall in more than two years, as weekslong anti-Covid lockdowns in parts of the country shutter factories, disrupt supply chains and keep car buyers at home.
RIP — “Farewell to the iPod,” by NYT’s Tripp Mickle: “ On Tuesday, Apple officially said goodbye to all that. The company announced it had phased out production of its iPod Touch, bringing an end to a two-decade run of a product line that inspired the creation of the iPhone and helped turn Silicon Valley into the epicenter of global capitalism.” | | | | DON'T MISS 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. | | | | |
| | HOLLYWOODLAND | |
INCOMING — “Ads Are Reportedly Coming to Netflix Sooner Than Expected,” by Vanity Fair’s Savannah Walsh: “ These major changes to Netflix’s long-established business model come amid a rough start to the year for the streaming service. A recent earnings report revealed that Netflix lost 200,000 s in the year’s first three months—and is expected to shed an additional 2 million across the globe by June. Netflix’s stock plummeted 35% last month, eliminating $50 billion in market cap. In its shareholder letter last month, Netflix announced its intent to monetize account sharing.”
| | MIXTAPE | |
DUMPSTER DIVE — “Divers pulled 25,000 pounds of trash from Lake Tahoe. Now they want to clean more Sierra lakes," by SF Chronicle's Gregory Thomas.
CASE CLOSED — “Police solve 32-year cold-case killing of California man,” via the Associated Press. — “ Tech Industry Warns That More Remote-Work Jobs Are Headed Out of U.S.,” by the WSJ’s Julie Bykowicz. — “‘Succession’ star glues hand to Starbucks counter in protest ,” via the AP.
| | BIRTHDAYS | | Microsoft’s Fred Humphries … Kor Adana | | | | A message from California Health Care Foundation: Too many Californians struggled to pay a medical bill in the last 12 months, and nearly half postponed care due to rising costs—with many saying their health worsened as a result.
There’s one big reason: Health care-related spending in California has gone up more than 140% in the last 20 years—while median household incomes have grown just over 40%. Health care is getting more and more expensive, and costs just keep going up.
This situation is only getting more acute. As California’s health systems consolidate, hospitals markets in most counties are now approaching “monopoly levels”—driving prices up, with little to no improvement in quality.
This is a big problem to solve, but other states—like Massachusetts and Rhode Island—have shown it can be done, creating new systems for improving how they monitor and manage the rate of health care cost growth, while taking better care of their patients. Learn More! | | |
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