About that California rebate plan…

From: POLITICO California Playbook - Thursday May 19,2022 01:22 pm
Presented by Southern California Edison: Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State
May 19, 2022 View in browser
 
POLITICO California Playbook

By Jeremy B. White, Lara Korte, Chris Ramirez and Juhi Doshi

Presented by Southern California Edison

THE BUZZ: Lawmakers agree Californians need some extra cash. How to get them that cash, however, continues to be a point of debate.

Gov. Gavin Newsom and legislative leaders have two different ideas of how the state could use its huge surplus to help struggling families. But after weeks of back and forth, neither has given much ground. Even with inflation at a 40-year high and gas prices in LA jumping to a nation-leading $6.08 per gallon on Wednesday, it’s unclear when relief will come down from Sacramento, or what it will look like.

The key sticking point seems to be vehicle ownership. Newsom says sending rebates to drivers is fast and equitable, but legislative leaders worry it’ll leave out some critical populations. Newsom last week said he expected more progress on negotiations following the release of updated surplus figures in the May budget revision. But as of Wednesday, legislators were still unenthusiastic about the administration’s proposal.

“Senate Democrats do not believe a rebate tied to car ownership does the job,” Senate President Pro Tem Toni Atkins said in a statement, noting that it leaves out non-car owners, including low-income and elderly Californians.

Let’s break it down —

Newsom’s $11.5 billion plan:

  • Includes $400 for registered vehicle owners, with a cap of two payouts per person (up to $800 total).
  • Would be distributed in the form of a debit card through the Department of Motor Vehicles.
  • Restricts rebates based on a yet-to-be-determined vehicle value, in order to concentrate the cash to those who need it most. 

The $8 billion “Better for Families” plan, backed by Atkins and Assembly Speaker Anthony Rendon:

  • Includes $200 checks, plus $200 per dependent, for people making $125,000 alone or $250,000 as joint filers. 
  • Would be distributed as a tax rebate, similar to how the Golden State Stimulus was distributed — though Senate Democrats are open to the idea of using debit cards via a third-party vendor. 
  • Includes supplemental one-time monthly grants for CalWORKS families and those on social security. 
  • Includes a grant program for other low-income Californians who are not income tax filers. 

For more clarity, let’s bring in the nonpartisan Legislative Analyst’s Office. In remarks to a Senate budget subcommittee on Wednesday, the LAO judiciously weighed the pros and cons of both the legislative and gubernatorial plans, but did note that, if speed is the goal, the DMV may not be the best choice.

“Tax refunds — both broad and income-based — could be issued relatively quickly and efficiently given that the state has experience providing such payments through the Golden State Stimulus Program and annual refunds to taxpayers,” the office said. “In comparison, providing tax refunds to vehicle owners would require several additional steps that could delay payments and increase administrative costs.”

BUENOS DÍAS, good Thursday morning. The California Fair Political Practices Commission today will discuss whether to change or lift its ban of cryptocurrency in campaign contributions. As POLITICO’s Susannah Luthi reported, the Newsom administration has taken a keen interest in making California crypto-friendly. We don’t expect any votes today, but if you’re interested in following the discussion, you canwatch it on YouTube. 

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: “You all got the contours of my muscles, right?” A short-sleeved Newsom hamming it up for cameras while getting his second booster shot in Kern County on Wednesday. (And yes, he did the flex thing again.) 

TWEET OF THE DAY: Lobbyist Kristina Bas Hamilton @kbashamilton: “Is it me or is every year ‘a really strange budget year’?”

WHERE’S GAVIN? Nothing official announced.

 

A message from Southern California Edison:

We believe everyone should have the right to breathe clean air. That’s why we’re leading the charge for more clean, renewable energy. We’re a national leader in battery storage and delivering solar energy to our customers. We’re working to cut emissions from buildings and freeways. And we proudly support the growth of green jobs.

 
Top Talkers

YIKES … — “S.F. firefighters who refused vaccines fought their firings with misinformation and conspiracy theories,” by the SF Chronicle’s Rachel Swan: “ Several insisted that God alone tells them what to put in their bodies.”

— “Column: Vancouver's safe drug-use sites are wrenching to see. California should open them anyway,” by the LA Times’ Anita Chabria: “The government agency in charge of health programs in Vancouver and surrounding areas spends at least $350 million annually on substance use and mental health, serving about 1 million people.”

CAMPAIGN MODE

FOXY: The enmity between Gov. Gavin Newsom and Fox News is often mutual — the governor periodically calls out the network by name, and conservative Fox personalities often assail California’s Democratic leadership or Newsom himself. So it’s interesting to note parent company Fox Corporation yesterday channeling $25,000 to Newsom’s 2022 re-elect. It also donated to his initial 2018 campaign.

— Elsewhere in California campaign finance land, criminal justice reform funder Smart Justice California dropped $100,000 to unseat Los Angeles Sheriff Alex Villanueva, and Republican Attorney General candidate Nathan Hochman gave his campaign $50,000.

RECALL HARDWARE — The team that helped Newsom crush the recall picked up some awards yesterday from the American Association of Political Consultants: Juan Rodriguez snagged campaign manager of the year while Newsom’s team of BearStar and Aisle 518 shared digital campaign of the year.

MAGA FACTOR — “How California’s Kevin Kiley won former President Donald Trump’s endorsement,” by the Sac Bee’s David Lightman: “His approach is often more visceral than strategic. He values loyalty. He likes ‘winners,’ broadly defined as those who are attractive on television and boast prestigious academic credentials. Kiley checks both boxes.”

ENDORSEMENT — “Gangsta rap pioneer Snoop Dogg endorses Rick Caruso for L.A. mayor, ” by the LA Times’ August Brown: “Snoop Dogg joins actor-entrepreneur Gwyneth Paltrow, music impresario Scooter Braun, Snap CEO Evan Spiegel and Netflix’s Ted Sarandos as L.A. celebrities who are backing Caruso.”

— “L.A. Mayor Candidate Karen Bass Urges Hollywood Not to Pull Shoots From States Banning Abortion, ” by The Wrap’s Denise Quan: “Despite her nuanced take on abortion-related production boycotts, Bass said she isn’t afraid to roll up her sleeves and duke it out, if she feels it will make a significant impact.”

 

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CALIFORNIA AND THE CAPITOL CORRIDOR

A LITTLE TOO QUIET … “Schools have dominated elections for the past year. So why is the state superintendent race such a snooze?” by the SF Chronicle’s Sophia Bollag: “The retreat of charter policy advocates is likely the biggest — although not the only — reason the race is quieter this year, said John Rogers, a professor of education at UCLA.” 

NOT QUITE — “In California for years, but still can’t qualify for in-state tuition, ” by CalMatters’ Zaeem Shaikh: “UC and Cal State could lose millions in revenue if one or both of the bills pass. But supporters say the bills would reduce equity gaps and increase access to an affordable higher education — especially critical, they say, when the state is enjoying a record budget surplus and students are recovering from a global pandemic.”

SURVEY SAYS — “ 85% of California fast-food workers have experienced wage theft, study finds,” by the Sac Bee’s Alexandra Yoon-Hendricks: “The findings suggest that about 425,000 fast-food workers in California are not being paid what they are owed, with people of color, immigrant communities and women disproportionately impacted because of their over-representation in the industry.”

— “ Woman Led Unemployment Fraud Ring From Prison, Prosecutors Say,” by the NY Times’ Amanda Holpuch: “One of the people named in the ledger was an 83-year-old man who had never lived in California and told investigators that he did not know the people who had used his identity to claim benefits, the court papers said.”

— “ Vaccine mandate struck down in court as cases climb in California prisons,” by the Sac Bee’s Wes Venteicher: “The corrections department reported its largest week-over-week increase in new cases, measured as a percentage, in the last week of April.”

 

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BIDEN, HARRIS AND THE HILL

— “FEMA turned down California county’s request for wildfire aid. Residents beg Biden for help,” by the Sac Bee’s Dale Kasler: “The state Office of Emergency Services appealed to FEMA, twice, and were turned down both times.”

— “Health Secretary Xavier Becerra tests positive for Covid-19,” by POLITICO’s Sarah Owermohle.

SILICON VALLEYLAND

DIGGING DEEPER — “Feds probe Tesla Autopilot in Newport Beach crash that killed 3,” by the LA Times’ Gregory Lee: “Many legal experts are clear that the liability of Level 2 systems such as Autopilot lies squarely on the driver — not on companies marketing technologies that may lead consumers to believe the features are more capable than they are.”

ICYMI — “Elon Musk Says Three Things Are Ruining California, ” by The Street’s Tom Bemis: “Musk became increasingly critical of the state as Tesla ramped up its production facilities.”

CANNABIS COUNTRY

A ‘TOAST’ TO THE HAPPY COUPLE — “The latest California wedding trend? Replacing alcohol with cannabis,” by the SF Chronicle’s Annie Vainshtein: “The prospect, [Mark Guilds] said, seems exciting to young people both because of the novelty and because in many places it’s still difficult to find a cannabis-friendly venue.”

 

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MIXTAPE

— “Opinion: Oakland Coliseum cat control serves as model for the nation,” by the Mercury News’ Sheila Mclain.

— “Homeowners sue SoCal Edison, claiming faulty equipment sparked Coastal fire,” by the LA Times’ Nathan Solis: 

— “ California Supreme Court clears the way for Newsom to grant clemency to NFL star’s father, convicted of murder in 2005,” by the SF Chronicle’s Bob Egelko.

— “Riding public transit in Los Angeles can be scary. Here are some things I’ve seen, ” by the LA Times’ Justin Ray. 

— “‘Dr.’ Taylor Swift has advice for NYU’s Class of 2022: Get comfortable with cringe,” by the LA Times’ Christi Carras.

Transitions

Assembly Republican Leader James Gallagher (R-Yuba City) has hired Emily Sissell as the new comms director for Assembly Republicans, replacing former spox Jim Stanley. 

Gallagher is also bringing in Casey Dunn as a press secretary for his office. Dunn comes from the senate side, where she was Sen. Brian Dahle’s policy analyst for two years.

BIRTHDAYS

Ian Clay of the Information Technology and Innovation Foundation … Samira Damavandi of Rep. Barbara Lee’s (D-Calif.) office… former state Sen. Hannah-Beth Jackson.

 

A message from Southern California Edison:

This is a time of great change and uncertainty. But what remains constant is our commitment to building a clean energy future for everyone. That’s why SCE is standing with California, leading the charge to reduce greenhouse gas emissions, improve local air quality and support continued economic growth. We’re a national leader in battery storage and delivering solar energy to our customers. We’re working to cut emissions from buildings and freeways. And we proudly support the fastest the growth of green jobs. We’re more than 13,000 employees serving 15 million Californians. When we work together, we can move full speed ahead into a clean energy future.

 

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.

 

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POLITICO California @politicoca

 

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