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Presented by Environmental Working Group: Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State | | | | |  | | By Lara Korte , Jeremy B. White , Sakura Cannestra and Owen Tucker-Smith | Presented by Environmental Working Group | THE BUZZ: Winning reelection may have been the easy part. Gov. Gavin Newsom is coming hot off a week of gigantic political gains — his margin of victory over Sen. Brian Dahle was so huge the race was called only about a minute after polls closed. Proposition 1, the abortion amendment he championed, passed with historic success, and Proposition 30, which he slammed as a “Trojan Horse” for greedy corporate interests, was resoundingly rejected by voters. Indeed, things must be feeling pretty peachy in Newsomland, but neither the governor nor his staff seem to hold any pollyannaish views about the next four years. Ahead of the next term Newsom has made some high-level staffing changes, including switching out executive secretary Jim DeBoo for Dana Williamson, a veteran political strategist and former cabinet secretary for Gov. Jerry Brown who will now serve as the governor’s top adviser. THE ISSUES... The governor has been clear he wants to keep the pressure on in some key areas: climate change, political polarization and, of course, homelessness. While talking to reporters after casting his ballot Tuesday, Newsom spoke of the need to fix the problem that’s taking over California streets and sidewalks, saying, “we're at a point where people are done with the rhetoric; we're done with the finger pointing campaign." To that end, Newsom earlier this month rejected every city’s plan for curbing homelessness with state dollars, saying they need to do better. City leaders are expected to convene with the governor in Sacramento on Friday to discuss improvements. “The excuses of the past are no longer going to work, and that applies equally to the state and local governments,” Jason Elliott, Newsom’s newly-appointed deputy chief of staff, told us. “There’s no superlative that does it justice. Homelessness is top of mind.” Then, there’s the looming risk of budget trouble. Several years of massive surpluses have given way to a drop in revenue amid high inflation. State revenues for the fiscal year (which started July 1) have come in more than $4.7 billion less than predicted — and that number could get worse this week when the October figures drop. The governor has been reading the writing on the walls — rejecting dozens of spending bills this past session in the name of fiscal discipline.
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California Gov. Gavin Newsom speaks at the Clinton Global Initiative, Tuesday, Sept. 20, 2022, in New York. | Julia Nikhinson/AP Photo | HIS FUTURE... While Newsom grapples with the problems at home, we expect continued chatter about presidential ambitions. It took all of 24 hours after polls closed Tuesday for people to start speculating about 2024. It might seem early, but things are ramping up in a very real way. Former President Donald Trump is expected to announce his reelection bid tomorrow, and President Joe Biden is facing his own pressures to decide about 2024 (he’s going to make the decision after the New Year, he said last week). Newsom and company continue to insist he has no interest in the White House. Campaign spokesman Nathan Click on Thursday told a Capitol Weekly panel that "if we didn't have term limits, my guess is he would run for governor for the rest of his life. He loves the job.” Gubernatorial enthusiasm aside, California does have term limits, and Newsom is going to have to do something after the governor’s office. Some speculate he could replace Sen. Dianne Feinstein. Others have floated the idea of an ambassadorship, or climate change adviser. But the one thing we’re fairly certain of is that, White House or not, Newsom isn’t likely to step back from his efforts to become a national Democratic firebrand. He said repeatedly on the campaign trail that he wants to combat the conservative narrative and political polarization, and that he believes it’s something Californians want as well. BUENOS DÍAS, good Monday morning. We saw the needle move on a handful of undecided races over the weekend. In the LA mayor’s race, Rep. Karen Bass pulled ahead of billionaire Rick Caruso, 50.78 percent to 49.22 percent, with an estimated 739,300 ballots left to be counted in LA County. With the Senate firmly in Democratic control, attention now turns to the House . In California, 12 Congressional races remain undecided, with razor-thin margins in a couple of districts — Republican John Duarte is just 84 votes ahead of Democratic Assemblyman Adam Gray in CA-13, and Rep. Ken Calvert is ahead of Democrat Will Rollins by two points in CA-41. 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: “There are all kinds of ways to exert influence. The speaker has awesome power, but I will always have influence.” House Speaker Nancy Pelosi speaking Sunday on CNN. TWEET OF THE DAY:
|  Today's Tweet of the Day | Twitter | WHERE’S GAVIN? Nothing official announced.
| | A message from Environmental Working Group: The average price for a gallon of gas in California is nearly twice the national average while oil companies’ profits have risen up to 500%. All in the current setting of a struggling economy with record inflation. Let’s put an end to oil company price gouging and put money back in the pockets of hard-working Californians. Go to http://ewg.org to find out more. | | | |  | Top Talkers | | KEVIN AND HIS SUPERFAN — “ California Republicans could get some very good news and some very bad news on the same day ,” by the San Francisco Chronicle’s Joe Garofoli: “If [Kevin] McCarthy becomes speaker, he would be the most powerful California Republican on the national stage since Ronald Reagan — and could help to revive the California Republican Party from death’s door.” — “ A Black principal was hired at a majority white school. She was told not to talk equity ,” by the Sacramento Bee’s Sawsan Morrar: “Clark ended the school year suspended by Roseville Joint Union High School District when she did not apologize for an email from the school’s wellness center that listed support services for LGBTQ students.”
| | CAMPAIGN MODE | | NECK & NECK — Bass takes slight lead over Caruso in LA mayor's race as count goes on , by POLITICO’s Lara Korte: Both candidates expressed optimism as polls closed on election night but a large number of mailed ballots meant that the final result may be days, and perhaps even weeks, away. County election officials estimate that there are hundreds of thousands of votes left to tally. CATCH ‘EM ALL — “ How two corgis and a Pikachu suit helped Kenneth Mejia make history in L.A. controller race ,” by the Los Angeles Times’ Jeong Park and Dakota Smith: “[Mejia] wanted to dress up as the Pikachu character, a cheery yellow rodent who has been used as a symbol of defiance at protests and by politicians, but his campaign manager was wary. Too silly, Jane Nguyen recalled thinking.” — “ Tracking the Mail Vote in the Uncalled House Districts ,” by the New York Times’ Nate Cohn: “California looms so large in the battle for the House because the state is home to half of the races that remain to be called — including six uncalled races Republicans currently lead. A staggering 40 percent of the vote remains to be counted statewide, based on data released by the California secretary of state, giving each party plenty of opportunities to gain ground.” TOUGH BETS — “ This failed California ballot prop. spent 50 times more for each yes vote than the abortion measure ,” by the Mercury News’ Harriet Blair Rowan: “Voting is free, but your vote can be really expensive. If you are among the 17% of voters who said ‘yes’ to Proposition 27, about online gambling, your vote on that measure might have been one of the most hard-bought in California history.” — “ Midterm vote raises questions about Orange County’s political direction ,” by the Orange County Register’s Andre Mouchard: “Nationally, the message sent by American voters in this year’s midterm was about inflation; or democracy; or abortion; or Donald Trump. Any or all of those issues were the big reason why people voted the way they did, depending on which pundit was talking and which part of the country they were talking about.” IT’S THE GOVERNOR, STUPID — “ Why California’s eco-friendly, tax-the-rich electorate killed Prop. 30 ,” by CalMatters’ Ben Christopher: “Voting down Proposition 30 might seem a little off-brand for the California electorate. These are the voters, after all, who showed no qualms just a decade ago about hiking income taxes on top earners and also hit up millionaires in 2004 to pay for mental health services.” SMOOTH RIDE — “ California’s Secretary of State: Election Day went ‘without glitches, ’” by CapRadio’s Vicki Gonzalez and Claire Morgan: “[Shirley] Weber sat down with CapRadio’s Insight host Vicki Gonzalez on Thursday to provide a look at how election results are shaping up and what voters should keep in mind with a few weeks to go before results are certified.”
| | | | POLITICO APP USERS: UPGRADE YOUR APP BY DECEMBER 19! We recently upgraded the POLITICO app with a fresh look and improved features for easier access to POLITICO's scoops and groundbreaking reporting. Starting December 19, users will no longer have access to the previous version of the app. Update your app today to stay on top of essential political news, insights, and analysis from the best journalists in the business. UPDATE iOS APP – UPDATE ANDROID APP . | | | | | | | CALIFORNIA AND THE CAPITOL CORRIDOR | | IN THE VALLEY — “ As California’s wells dry up, residents rely on bottled water to survive ,” by the Washington Post’s Joshua Partlow: “Amid rows of almond and orange trees, entire communities are relying on deliveries of bottled water to survive. More than 2,400 homes in the region keep their taps running with emergency plastic water tanks installed in their yards by the nonprofit group Self-Help Enterprises.” IDENTITY CRISIS — “ Is California on its way to banning rodeos? Behind the growing movement to buck the event ,” by the Los Angeles Times’ Susanne Rust: “In California, there is a growing movement to ban — or seriously curtail — these kinds of performances. And lawmakers are stepping into the fray, exposing one more hot-button issue that is seemingly emblematic of the nation’s growing cultural discord.” — “ California’s Solar Subsidy Plan Is Really About Batteries ,” by Bloomberg’s Brian Eckhouse and Mark Chediak: “California -- the biggest US solar market -- is poised to overhaul its landmark subsidy for rooftop panels to encourage homeowners to also install batteries to help stabilize its power grid and prevent blackouts.” WASTED WATER — “ This Week's Storms Brought Lots Of Water — But Much Of It Will Wind Up In The Ocean ,” by LAist’s Erin Stone: “L.A. gets most of its water from the snow that falls in the Sierra Nevada mountains. It melts into reservoirs, then is piped hundreds of miles to Southland cities. But the climate emergency is making snow a decreasingly reliable source of water. Climate models suggest as much as 65% of that snowmelt could be lost by the end of the century.” — “ California hospitals erect tents to cope with rise in flu ,” by the AP: “Several Southern California hospitals have begun using overflow tents outside emergency rooms to cope with a rising number of patients with flu and other respiratory illness.” — “ UC’s Student Workers Can’t Afford California ,” by Capital & Main’s Mark Kreidler: “The heart of the matter is pay, because increasing salaries is virtually the only way student workers can afford the rent in the areas where many UC campuses are located. Teaching assistants, for example, are paid $24,000 per year, far less than the median rent in Los Angeles and other markets where UCs sit.”
| | | | A message from Environmental Working Group:   | | | | | BIDEN, HARRIS AND THE HILL | | THE RED WAVE THAT WASN’T — 'They completely f--ked up': How the GOP lost its grip on the Senate majority , by POLITICO’s Burgess Everett, Natalie Allison and Marianne Levine: How Republicans blew it despite their obvious political advantages is the story of a larger, existential struggle within the GOP. Interviews with more than 20 strategists and senators from both parties highlight the reasons for Republicans’ stumbles this year: former President Donald Trump played kingmaker, and the party reasoned it could do little about it besides trying to ride historical tailwinds. — “ Alex Padilla made history with his U.S. Senate win. What it means for Latinos ,” by the Los Angeles Times’ Seema Mehta and Rachel Uranga: “For the last 30 years, the state has elected its senators from a largely white and moneyed political class in the Bay Area that has produced some of California’s most renowned Democratic figures. Padilla’s childhood in Pacoima could not have been further removed.” — Education Department suspends application for student debt relief after court ruling , by POLITICO’s Michael Stratford: The Biden administration has stopped accepting new applications for its student debt relief program after a federal judge on Thursday evening struck down the policy as illegal.
| | SILICON VALLEYLAND | | THE SELF-DRIVER— “ ‘I’m fed up’: Bay Area Tesla owners respond to Elon Musk’s Twitter takeover ,” by the San Francisco Chronicle’s Julie Johnson: “With erratic, sometimes juvenile tweets, Musk is testing the tolerance of drivers in one of Tesla’s most concentrated markets. Across California, Tesla accounts for 73% of new electric vehicle sales, though competition from other automakers is rising.” — “ The tech CEO spending millions to stop Elon Musk ,” by the Washington Post’s Gerrit De Vynck: “[Dan] O’Dowd, who made his fortune selling software to military customers, has been using the Model 3 to test and film the self-driving software. He’s documented what appear to be examples of the car swerving across the centerline toward oncoming traffic, failing to slow down in a school zone and missing stop signs.” BUCKLE UP — ‘Serious risk of breach’ at Musk’s Twitter , by POLITICO’s John Sakellariadis: Elon Musk’s turbulent Twitter takeover is undercutting the platform’s defenses while introducing new security risks, and cyber security experts fear users and the public will soon suffer the consequences.
| | | | GO INSIDE THE MILKEN INSTITUTE FUTURE OF HEALTH SUMMIT: POLITICO is featuring a special edition of our “Future Pulse” newsletter at the 2022 Milken Institute Future of Health Summit from Dec. 6 to 8. The newsletter takes readers inside one of the most influential gatherings of health industry leaders and innovators solving the biggest global health issues to ensure a healthier, more resilient future for all. SUBSCRIBE TODAY TO RECEIVE EXCLUSIVE COVERAGE . | | | | | | | CANNABIS COUNTRY | | — The black market strangled California's legal weed industry. Now it's coming for New York , by POLITICO’s Julian Shen-Berro and Shannon Young: The outcome is not unlike what happened when California legalized marijuana. Six years later, illegal sellers and growers continue to thrive there. Despite those struggles, New York leaders decided to take a gentle approach with anyone selling without a license.
| | MIXTAPE | | SINGALONG — “ Karaoke in the time of COVID ,” by the Los Angeles Times’ August Brown. — “ San Francisco and the U.S. were solving veteran homelessness until Trump. Can the promise be restored? ” by the San Francisco Chronicle’s Kevin Fagan. ATTACK AFTERMATH — Pelosi: Some people voted because political violence has ‘gone too far,’ by POLITICO’s Olivia Olander. — “ How Trump and Kevin McCarthy turned a sure Republican victory into a historic humiliation ,” Opines Josh Gohlke for the Sacramento Bee. — “ Everyone is cutting ties with Kanye West. For church leaders, it’s not that simple ,” by the Los Angeles Times’ Kenan Draughorne.
| | BIRTHDAYS | | Monday: Condoleezza Rice … Ben Rhodes … Peter Lattman ... Randolph Court of the Information Technology & Innovation Foundation … Stanley Treitel ... Edward A. Klein ... Joshua Meltzer … Liz Jarvis-Shean … Shawn Willis … (was Saturday): Protocol’s Bennett Richardson … Anchor Change’s Katie Harbath … Erica Sackin of Meta … former Rep. Diane Watson (D-Calif.) … Olivia Lange … Morley Winograd
| | A message from Environmental Working Group: While Big Oil enjoys record profits from California consumers, working-and middle-class families are being forced to make difficult pocketbook decisions between the need to commute and the rising costs of living.
The average price for a gallon of gas in California is nearly twice the national average, reaching as high as $7 in some areas in recent weeks, with oil companies pocketing up to 5x their normal profit per gallon.
This rampant price gouging needs to stop and the outrageous profits taken from the pockets of hard-working Californians needs to be returned.
Gov. Gavin Newsom has called a special session of the state legislature in early December to vote on a price-gouging penalty tax on these companies that will be sent directly back to California consumers in the form of rebates and refunds.
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