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Presented by CCIA: Lara Korte and Dustin Gardiner’s must-read briefing on politics and government in the Golden State | | | | |  | | By Christopher Cadelago, Melanie Mason, Dustin Gardiner, Lara Korte and Sejal Govindarao | Presented by CCIA | | 
California Gov. Gavin Newsom looks up at the gallery at the swearing-in ceremony for California Assembly Speaker Robert Rivas, D-Hollister, at the Capitol in Sacramento, Calif., Friday, June 30, 2023. (AP Photo/Rich Pedroncelli) | AP |
DRIVING THE DAY: Hotel workers in Southern California continue their strike. Between the hospitality workers and the ongoing writers’ strike, several of the Golden State’s key industries face prolonged disruptions — and no end is in sight.
THE BUZZ: He’ll strong-arm ya: Gov. Gavin Newsom lifted the curtain a bit in his budget negotiations with the Legislature, giving us a chance to judge the governor not just by what he did but also how he did it. He again employed the tactic of using the budget process to enact huge policy changes late in the game — a shift that’s likely to be on increasing display over the remainder of his governorship despite considerable grousing from some lawmakers in his own party. He jammed through late changes to the state’s storied environmental law, contending that streamlining the process was necessary to take advantage of tens of billions of dollars in federal and state money. Assembly negotiators balked, holding out for protections for disadvantaged communities. In the end, Newsom got much of what he wanted. He likes poker: Newsom included in his budget proposal language to fast-track a hotly contested Delta water tunnel to move water to the Southland. Turns out it was mostly a negotiating tactic. Including the proposal — and then summarily dumping it — allowed the administration to make what appeared to be a major concession. Several environmental activists and close budget watchers noted that the tunnel was never Newsom’s baby, anyway, despite his support for moving the project forward – and questioned whether he would really go to the mat for it in the state budget. As the dust settled, three people familiar with the negotiations confirmed to POLITICO that the governor was indeed bluffing. He’s OK fighting enviros: Newsom got his changes to the California Environmental Quality Act — and he’s indicated that he wants more. That could happen through the state budget, in future years, or even through some other changes that he could put his weight behind that would not affect CEQA specifically, but might be able to speed things up in other ways. The fight with environmental groups that opposed weakening CEQA puts the governor in an unusual spot: While he’s pushing for more changes to speed up reviews of major infrastructure projects, he’s also fighting on multiple fronts with oil companies, allowing him to claim an allegiance with both sides. Leadership tea leaves: Newsom’s apparent willingness to veto the budget if he didn’t get his way on CEQA revealed rifts between his administration and Assembly negotiators. The implication of the veto would have meant that Newsom would have technically been negotiating this last budget with new Speaker Robert Rivas. Already, there’s been some buttering up happening as administration officials look to turn the page from the Anthony Rendon era. Newsom has remarked about how Rivas was an early supporter — both of the governor, and of the CEQA changes. It’s too early to say how accommodating Rivas will be to Newsom. But the comments from the governor and aides suggest they’d like to start off on a good foot as the speaker tries to consolidate support from his caucus while demonstrating that he’s looking out for their interests. He embraced doom: Newsom wasn’t scared to use the $32 billion deficit to argue that the state needed to tighten its collective belt. With the strong potential for another shortfall next year, the governor and legislative leaders could be moving into prolonged leaner years. That means more scrutiny of programs. And it means even more attention not just on enacting policy but actually implementing it. His tone recalled his doomsaying predecessor Jerry Brown, who famously declared in his final budget proposal: “What’s out there is darkness. Uncertainty. Decline and recession. So good luck, baby!” HAPPY TUESDAY. Thanks for waking up with Playbook. PLAYBOOK TIP LINE — Are you Robert Rivas? Have you decided who you're appointing to committees yet? Get in touch! We want all your hot tips, photos and story ideas. Now you can text us at 916-562-0685 — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on Twitter — @DustinGardiner and @Lara_Korte WHERE’S GAVIN? Nothing official announced
| | | | A message from CCIA: A link tax is the last thing California needs. Oppose AB886. | | | |  | FRESH INK | | ON SECOND THOUGHT: Newsom celebrated the signing of changes to CEQA, insisting that the move will make it easier to build the major infrastructure projects that will make the state more resilient to climate change. Not so much, argues Chris Elmendorf, a UC Davis law professor and expert on the environmental law. The changes signed into law by Newsom as part of the budget deal requires that to the “extent feasible” courts should decide challenges under the environmental law within 270 days — if the suit challenges certain transportation or clean energy projects. But it lacks a specific enforcement mechanism. “It’s just an exhortation: ‘Please judge, don't mess up this project because the governor likes it a lot,” Elmendorf said. The administration counters that courts typically take such direction into consideration. Similar language has been effective in expediting challenges to sports stadiums, argues Newsom spokesman Alex Stack. Newsom’s proposal drew strong criticism from environmental organizations, which urged the administration to back off from what they perceived as significant changes being pushed through at the last minute in the budget. This could also just be a preview, though. Newsom has said he might seek additional changes to CEQA – and the fight could be far more protracted in the next round. FIRST IN PLAYBOOK — BONTA’S DEPUTY OUT: Jessica Caloza, who stepped down as deputy chief of staff to Attorney General Rob Bonta on Monday, is expected to announce that she plans to run for the Assembly. Her campaign spokesperson said she’s aiming for the District 52 seat held by Assemblymember Wendy Carrillo, who’s running against former ally Kevin de León for the Los Angeles City Council. If elected, Caloza would be the first Filipina in the Legislature, her campaign said. FAULCONER FLIES ON — Former San Diego Mayor and recall candidate Kevin Faulconer is launching a campaign for supervisor in San Diego's third district today. SENATE SHUFFLE — Former Irvine Vice Mayor Anthony Kuo today announces his bid for Senate District 37, looking to replace Sen. Dave Min, who is running for Rep. Katie Porter's Orange County congressional seat. Kuo, a Republican, faces a challenge from Democratic state Sen. Josh Newman, who is looking to hop districts. ROLL WITH IT – Sen. Scott Wiener has pushed a premier housing streamlining bill past several obstacles, and Monday he overcame another: a hostile Democratic committee leader. It’s not every day you see someone roll a chair, or override their opposition to get a bill out of committee. But an often-testy Assembly Natural Resources hearing saw Wiener secure the votes for his Senate Bill 423 — which would accelerate housing approval in cities that lag their housing goals — without the amendments sought by Assembly member and Chair Luz Rivas. Rivas wanted to restrict building in coastal and wildfire-prone areas, channeling the powerful Coastal Commission’s opposition. Wiener rejected her proposed changes as “a body blow.” The dispute exposed intra-Democratic tensions over authority and deference. “You can’t exclude the committee. It’s our decision,” Rivas told Wiener at one point. As a vote neared, she lamented to Wiener that she didn't want “to walk into a committee and negotiate from the dais,” with a blizzard of paper amendments flying around. Wiener said he had never before walked into a hearing without being on the same page as the chair. “It’s not something I take lightly,” Wiener said.
| | | | A message from CCIA:   | | | | | INFLUENCERS | | |  FILE - Los Angeles City Council member Kevin de Leon sits in chamber before starting the Los Angeles City Council meeting on Oct. 11, 2022 in Los Angeles. Leon was involved in a fight with an activist at a holiday event Friday night, Dec. 9. The altercation involving Leon occurred at a toy giveaway and holiday tree lighting at Lincoln Park, the Los Angeles Times reported. (AP Photo/Ringo H.W. Chiu, File) | AP | TIES THAT BIND — Los Angeles City Councilmember Kevin de León doesn’t appear to be shying away from helping the controversial housing non-profit AIDS Healthcare Foundation after an extensively detailed investigation by the Los Angeles Times that raised ethical questions about his financial ties to the group. KDL’s ballot measure committee, Believing in a Better California, donated $5,000 last month to Justice for Renters, per state filings, the committee sponsored by the foundation that is backing a statewide rent control measure for the 2024 ballot. Per the Times’ investigation, de León worked as a consultant for the group in the time between his 2020 election and inauguration to L.A. City Council, taking in more than $100,000, and continued to promote the group throughout his tenure. De León has supported previous rent control measures backed by the group, in 2018 and 2020. State filings show de León’s ballot measure committee donated nearly $40,000 to a previous rent control measure backed by AHF in October 2020, less than two weeks after taking city office. De León, in a statement, said “Los Angeles renters are drowning under some of the nation’s highest rents, making the Justice for Renters Act an important tool that protects renters from being pushed into tents onto our sidewalks – protecting tenants is a cause we should all be behind."
| | AROUND THE STATE | | — “This is the hometown of San Francisco’s drug dealers,” by the San Francisco Chronicle’s Megan Cassidy and Gabrielle Lurie: “The valley is also the hometown of a high concentration of people who, fleeing poverty and a country with one of the world’s highest murder rates, migrate to San Francisco, where they ultimately sell drugs, according to an 18-month investigation by The Chronicle.” — “California spent $600 million to house and rehab former prisoners — but can’t say whether it helped,” by CalMatters’ Byrhonda Lyons: “The state does not collect data on whether parolees who participate in the program have found jobs or whether they are returned to prison for another crime. What state data does show is that only 40% of participants completed at least one of the services they were offered. — “Homes sliding downhill as ground shifts above canyon in Rolling Hills Estates,” by the Los Angeles Times’ Nathan Solis and Grace Toohey: “Katie Schwartz thought she was overreacting. After she had noticed a few small cracks in her Rolling Hills Estates home late last week, she decided to call the fire department Saturday to check it out. ‘I thought I was crazy,’ Schwartz said.” — “San Diego Union-Tribune sold by Los Angeles Times to MediaNews Group,” by the Wrap’s Jeremy Bailey: “The Los Angeles Times has sold the San Diego Union-Tribune to the MediaNews Group in a move announced Monday by Times owner Patrick Soon-Shiong in an email to staff.”
| | | BIRTHDAYS | | | WAS MONDAY: Kimberly Ovitz
| | | | A message from CCIA: Lawmakers are proposing a bill that would charge websites every time they link to a news article. A new tax is the last thing CA needs. Oppose AB886. | | | 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 | | | | |  |
