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Presented by UPS: Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State | | | | |  | | By Jeremy B. White, Lara Korte, Sakura Cannestra and Owen Tucker-Smith | Presented by UPS | THE BUZZ: It’s not quite an October surprise, but California taxpayers may have forgotten about imminently arriving financial relief. Six months after Gov. Gavin Newsom vowed “immediate action” on channeling some of an unprecedented surplus back to Californians, the first of 18 million payments are set to start hitting bank accounts today. A wave of debit cards will follow for people who haven’t gotten tax refunds via direct deposit. Individuals can get as much as $350 and families with dependents will receive a maximum of $1,050. Newsom repeatedly and publicly touted the rebate yesterday. “I don’t think it could have come at a better time as it relates to rising gas prices,” Newsom said during a press conference in San Francisco. California’s fiscal forecast has darkened since the start of the year. May celebrations about a record $97.5 billion revenue windfall — a vindication for champions of California’s progressive tax system — have given way to a drumbeat of notices that tax collection is falling short of forecasts. In veto after veto last month, Newsom knocked back legislators by warning “lower-than-expected revenues” require remaining “disciplined when it comes to spending.” One constant throughout: Californians are feeling the strain as inflation persists. In March, 61 percent of voters told the Public Policy Institute of California that price increases were imposing economic hardship. In September, that figure had ticked up to 65 percent. The upcoming midterm election could hinge on those struggles, the primacy of economic concerns and on underlying pessimism about the state’s longer-term outlook. So it’s notable that payments will arrive around the same time as ballots. Los Angeles began sending them to its 5.6 million voters yesterday, and county registrars have until Monday to finish doing the same. Dissatisfied voters tend to punish the party in power, which in this case is Democrats. Will they credit Newsom and the Legislature for lightening the fiscal load? About ten million debit cards will come in envelopes marked “Important information about your Middle Class Tax Refund,” although some won’t land until after the election. | 
California Gov. Gavin Newsom speaks at the Clinton Global Initiative, Tuesday, Sept. 20, 2022, in New York. | Julia Nikhinson/AP Photo | GASSED: Soaring gas prices remain at the heart of inflation. You may remember Newsom initially wanted to link relief payments to car ownership and to halt a planned gas tax increase, both of which Democratic legislative leaders thwarted. Democrats also hijacked a Republican gas tax suspension bill and inserted hostile amendments that would instead impose a windfall tax on oil producers. That was more of a stunt than a viable policy proposal. But now Newsom is publicly clamoring for the Legislature to enact that very tax, arguing oil companies — a favorite villain for Newsom these days — are fleecing consumers. The governor deflected yesterday on whether he’d call the Legislature back into a special session (and then emailed donors about the effort). Democratic leaders are unlikely to embrace a tax increase a month before a possible Republican wave election. That means the hard work of marshaling a 2/3 vote will likely have to wait until 2023, when gas prices could look different. FROM THE HOUSE: California’s congressional delegation is adding to the political pressure on in-state oil producers. Rep. Mike Levin and numerous other California Democrats have written to the Federal Trade Commission asking the regulator to investigate California refineries for potential market manipulation. BUENOS DÍAS, good Friday morning. First Lady Jill Biden is in San Francisco today, where she’ll tour a cancer research facility and then help stock the Democratic Party’s warchest at a DCCC luncheon with Speaker Nancy Pelosi and fellow House Democrats. Programming Note: We’ll be off this Monday for Indigenous Peoples Day but will be back in your inboxes on Tuesday. 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. Send us your political mailers! We’re looking to bring more transparency to the elections process. How you can help: Send us photos of the campaign ads you’ve gotten in the mail. You can upload photos here or email them to mailers@politico.com. QUOTE OF THE DAY: “Looking at the tangible evidence — communities gone, fires unprecedented, salmon disappearing in large numbers, species being eradicated or extirpated — that’s on a board I have in my office. I’m not allowed to say ‘extirpated,’ but I’m out of the province so I’m happy to say ‘extirpated’ here today. You can Google that.” British Columbia Premier John Horgan shows off his vocabulary before signing a climate agreement in San Francisco with Newsom, Oregon Gov. Kate Brown and Washington Gov. Jay Inslee. TWEET OF THE DAY | 
Today's Tweet of the Day | Twitter | WHERE’S GAVIN? In Sacramento, to swear in the first class of #CaliforniansForAll College Corps Fellows. | | | | A message from UPS: At UPS, we deliver careers. Learn more | | | |  | TOP TALKERS | | A GROWING CONCERN — “California homeless population grew by 22,000 over pandemic,” by CalMatters’ Manuela Tobias: “The latest point-in-time count of California’s homeless population shows that it increased at roughly the same pace as previous years, although it appears to have disproportionately affected Latinos. Experts say homelessness interventions are paying off but ‘the inflow is killing us.’” TUNE IN NEXT TIME — “ KGO 810, legendary long-time Bay Area talk radio station, ends format, leaves cryptic message,” by the Mercury News’ Ethan Baron and Linda Zavoral: “‘Today we say goodbye to the legendary KGO,’ read the message on its website and in a tweet. ‘Over the last 80 years, KGO has been here for Bay Area listeners covering and discussing all the news that has impacted our world and local communities.’ Monday will bring ‘a new era,’ the message said.” — “ Voters support Newsom’s mental health plan and back mandatory kindergarten, poll shows,” by the Los Angeles Times’ Hannah Wiley and Phil Willon: “Civil and disability rights groups spent the majority of the legislative session in fervent opposition to CARE Court over concerns the new law could criminalize homelessness and lead to mentally ill people being coerced into treatment.” | | CAMPAIGN MODE | | MAKING A SPLASH — “These 500 San Franciscans are making the biggest donations for the 2022 November election,” by the San Francisco Chronicle’s Leila Darwiche and Nami Sumida: “In total, San Franciscans have donated at least $60 million this election cycle to federal candidates and committees, according to data from the Federal Election Commission.” DON’T ASK — “Many California GOP candidates are against abortion. They just don’t like to talk about it ,” by the Sacramento Bee’s Lindsey Holden: “A group of GOP leaders and state Senate and Assembly candidates gathered Wednesday on the Capitol steps to tout their “California Promise” agenda. Speakers were eager to share their vision for reforming criminal justice policies and helping unhoused residents.” | | | | JOIN NEXT WEDNESDAY FOR A TALK ON U.S.-CHINA AND XI JINPING’S NEW ERA: President Xi Jinping will consolidate control of the ruling Chinese Communist Party later this month by engineering a third term as China’s paramount leader, solidifying his rule until at least 2027. Join POLITICO Live for a virtual conversation hosted by Phelim Kine, author of POLITICO’s China Watcher newsletter, to unpack what it means for U.S.-China relations. REGISTER HERE. | | | | | | | CALIFORNIA AND THE CAPITOL CORRIDOR | | SHIELDS UP — Health insurer launches fight after failing to win Medi-Cal contract, by POLITICO’s Victoria Colliver: Blue Shield of California filed a complaint Wednesday accusing the state Department of Health Care Services of failing to respond to its requests for public documents as part of its bid to challenge the contract decisions. — “State Will Review Psych Exams of More Than 500 SFPD Officers Following Murder Charges Against Alameda Deputy ,” by the San Francisco Standard’s Jonah Owen Lamb: “The regional review was launched after 47 deputies in Alameda County were relieved of duty in late September because they had failed their psychological examinations, information that came to light after Alameda County Sheriff’s Deputy Devin Williams Jr., 24, allegedly murdered a couple in their Dublin home.” — “ 90% of Black parents in the Sacramento region report uncertainty around child-care access,” by CapRadio’s Srishti Prabha: “A Valley Vision and Sacramento State survey released this week indicates that only 22.5% of parents feel confident in their ability to access the child care they need in Sacramento, Sutter, Yolo, Yuba, El Dorado, and Placer counties.” TAXATION TRIALS — “ Awaiting Student Debt Relief In California? Here’s What To Know About Taxes,” by LAist’s Julia Barajas: “All in all, millions of people could see their entire remaining balance cleared out without any tax obligations. But as things stand, if you live in California, you may have to pay state taxes.” — “ Jan. 6 riot defendant from Northern California wants out of DC jail, citing mental decline,” by the Sacramento Bee’s Sam Stanton: “[Sean Michael] McHugh, who allegedly texted someone that he “unloaded a whole can of bear spray on a line of cops,” also has filed a grievance against his jailers, claiming he was hit by pepper spray “for absolutely no reason” and had to wait two hours for medical treatment, court documents say.” — “A fifth death prompts state scrutiny of Veterans Village of San Diego,” by inewsource’s Jill Castellano: “Despite a requirement to report all client deaths to a California oversight agency, Veterans Village hasn’t notified the Department of Health Care Services of any deaths that have occurred this month.” PLEDGING PARCHED — “More water restrictions likely as California pledges to cut use of Colorado River supply,” by the Los Angeles Times’ Ian James: “Four water districts and the state’s Colorado River Board said in a letter to the federal government on Wednesday that they are proposing to reduce water use by up to 400,000 acre-feet per year. That would amount to about 9% of the state’s total water allotment from the river for the next four years, through 2026.” | | | | A message from UPS:   | | | | | BIDEN, HARRIS AND THE HILL | | — Biden pardons marijuana offenses, calls for review of federal law, by POLITICO’s Eugene Daniels and Natalie Fertig: “Currently, marijuana is classified as a Schedule I narcotic, meaning it’s deemed to have no medical use and a high potential for abuse. Heroin and LSD are other Schedule I drugs.” | | SILICON VALLEYLAND | | — “Musk's Twitter Takeover Hits Snag Over Debt-Financing Issue,” by Bloomberg’s Jef Feeley, Michelle F Davis and Paula Seligson: “The two sides are expected to file a motion with the court when they have settled all their questions, which would stop the lawsuit that Twitter filed in the aftermath of Musk’s rejection.” THE FINAL FRONTIER — “Billboards from space might eventually be cheaper than Super Bowl ads — with a much bigger audience. Here's how companies could start advertising from the cosmos. ” by Insider’s Lakshmi Varanasi: “The research paper proposed a plan that would send 50 satellites into the low Earth orbit, which is between 100 to 600 miles above the Earth's surface.” — “Roblox sued for allegedly enabling young girl’s sexual, financial exploitation ,” by Ars Technica’s Ashley Belanger: “The lawsuit filed Wednesday in the San Francisco Superior Court shows how sexual predators can exploit multiple social platforms at once to cover their tracks while financially and sexually exploiting children.” | | CANNABIS COUNTRY | | — “Forget California and Amsterdam: This country wants to become the new king of weed,” by the Los Angeles Times’ David Pierson: “Many hours from Bangkok, down a winding road dotted with ornate wooden spirit houses, past fields of drooping tapioca plants and across a bridge over the inky green River Khwae, a white-paneled building sits in a clearing.” | | | | 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. | | | | | | | HOLLYWOODLAND | | — “Kanye West tells Tucker Carlson that his Trump support ‘threatened’ his life and career,” by the Los Angeles Times’ Alexandra Del Rosario: “West and [Fox News’ Tucker] Carlson touched on everything from the consequences of West supporting former President Trump to abortion (“I’m pro-life”) to his ex-wife, Kim Kardashian. West even managed to mention musician Lizzo and Tesla Chief Executive Elon Musk. | | MIXTAPE | | — “Joan Didion and the Western Spirit,” by the Los Angeles Times’ Adam Nagourney. — “Kidnapped family of four found dead. ‘There’s no words,’ Merced sheriff says,” by the Los Angeles Times’ Noah Goldberg and Gregory Yee. OUT-GROWING OR OUT-PRICING — “ They grew up in family homes in Oakland. Now, they can’t afford their own,” by Oaklandside’s Natalie Orenstein. — “ Stabbing Spree on Las Vegas Strip Leaves 2 Dead and 6 Others Injured,” by the New York Times’ Vimal Patel. — “Solar and wind farms can hurt the environment. A new study offers solutions ,” by the Los Angeles Times’ Sammy Roth. WATER RISK — “This popular California hot spring reportedly still has brain-eating amoeba present in the water,” by the San Francisco Chronicle’s Annie Vainshtein. — “‘Game of Thrones’ Meets ‘Harry Potter’ Inside This Fantasy-Filled Beverly Hills Home,” by the Wall Street Journal’s Katherine Clarke.
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