Let’s make a deal — later

Your afternoon must-read briefing on politics and government in the Golden State
Mar 20, 2024 View in browser
 
POLITICO California Playbook PM

By Blake Jones

AGREE TO AGREE: There are no details yet, but Gov. Gavin Newsom and the leaders of the state Senate and Assembly today said they have agreed to cut $12 billion to $18 billion from the budget deficit.

That sounds like a big deal — and it could be, depending on the actual size of California’s budget deficit.

Newsom has pegged the shortfall at $38 billion and has proposed closing it with a combination of cuts, delays in spending and by dipping into the state’s rainy day fund. The nonpartisan Legislative Analyst’s Office has said the shortfall could be up to $73 billion, which would obviously make the next few months of budget planning much more complicated.

State Senate Pro Tem Mike McGuire and Assembly Speaker Robert Rivas issued statements today in support of the deal — but signaled no agreement on specific proposals.

California Gov. Gavin Newsom discusses his proposed state budget for the 2024-2025 fiscal year, during a news conference in Sacramento,Calif., Wednesday, Jan. 10, 2024. (AP Photo/Rich Pedroncelli)

Gov. Gavin Newsom discusses his budget proposal for the 2024-2025 fiscal year, during a January news conference in Sacramento, California. Rich Pedroncelli | AP

Today’s announcement of an agreement offers Newsom the political benefit of announcing a smaller deficit number alongside his revised budget proposal in May.

The Senate clearly signaled what it wants to do, announcing a $17 billion early action plan last week. Assembly leaders previously said they would release their early-action proposal next month.

Rivas, in his statement today, said he looks forward to finalizing a deal with the other negotiators “in early April.”

IT’S WEDNESDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to bjones@politico.com or send a shout on X. DMs are open.

 

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WHAT YOU NEED TO KNOW TODAY

NOT SO FREE SPEECH: Public universities in California would be required to limit what is considered acceptable speech on campus under legislation announced today by members of the Legislature’s Jewish caucus.

It comes in response to antisemitic incidents around the state amid protests over the Oct. 7 attack by Hamas and the ongoing Israeli response that has killed large numbers of civilians in Gaza.

The proposed legislation authored by state Sen. Steve Glazer would require universities to amend their codes of conduct to prohibit advocating genocide and train all students on how to exchange ideas in a civil manner.

403647 07: A pro-Palestinian demonstrator is confronted by University of California at Berkeley police as she attempts to rush into a building April 9, 2002 during a demonstration in Berkeley, CA. Hundreds of demonstrators supporting both the Palestinians and the Israelis held rallies at the University of California at Berkeley campus. (Photo by Justin Sullivan/Getty Images)

Protest at UC Berkeley | Getty Images

“The First Amendment does not allow students to harass their peers,” the East Bay Democrat said of Senate Bill 1287. “It is not a permission slip to intimidate others as a way to silence them. And the First Amendment is definitely not an open invitation to violence.”

The proposal would create a requirement for the California State University system and the California Community Colleges. It would request that the UC do the same thing — a nod to the system’s constitutional autonomy from the Legislature.

Assemblymember Jesse Gabriel, co-chair of the caucus, said he expects all three segments to be receptive to the proposal. — Blake Jones

ON THE BEATS

NOT SO LOCAL POLITICS: Sacramento’s City Council approved a resolution calling for a cease-fire in the Israel-Hamas war — but not before hours of heated public testimony and the arrest of a dozen protesters.

The protesters, angry over references in the resolution to a two-state resolution to the conflict between Israel and the Palestinians, were handcuffed and removed after they refused to leave council chambers.

Sacramento Bee columnist Robin Epley stayed behind with the protesters and was handcuffed and quickly released by police. — Sarah Grace Taylor.

CRITICAL CARE: Fresno Assemblymember Esmerelda Soria announced today that she would chair a newly formed Select Committee on Distressed Hospitals.

California hospitals have had a rough couple of years. The pandemic and high labor costs have been squeezing their bottom lines, and they’re staring down a 2030 deadline for seismic upgrades and 2026 deadline to start reigning in costs or face penalties at the Office of Health Care Affordability.

Rural hospital closures in particular are a priority for Rivas, and one of the most bipartisan concerns in the Legislature, especially since the closure of Madera Community Hospital last year. — Rachel Bluth

 

In celebration of Earth Month, the USC Wrigley Institute for Environment and Sustainability and the USC Dornsife Center for the Political Future, in collaboration with POLITICO, host “Climate Forward 2024: Climate at the Crossroads” on April 4, 2024 at USC. Top experts from politics, government, media, and academia will discuss climate change issues with a focus on finding practical policy and business solutions as well identifying ways to remove political obstacles to implementing those changes. Register to attend in person or virtually.

 
 
WHAT WE'RE READING TODAY

FILE - Los Angeles Dodgers' Shohei Ohtani, right, and his interpreter, Ippei Mizuhara, leave after a news conference ahead of a baseball workout at Gocheok Sky Dome in Seoul, South Korea, March 16, 2024. Mizuhara has been fired by the Dodgers following allegations of illegal gambling and theft. (AP Photo/Lee Jin-man, File)

Los Angeles Dodgers' Shohei Ohtani, right, and his interpreter, Ippei Mizuhara, leave after a news conference Saturday in Seoul, South Korea. Mizuhara was fired by the Dodgers following allegations of illegal gambling and theft. Lee Jin-man | AP

MONEYBALL: The Dodgers today fired Shohei Ohtani’s interpreter, Ippei Mizuhara, after he was accused by representatives of the superstar of stealing from the player to place bets with an illegal bookmaker. (Los Angeles Times)

DOOM LOOP SCROLLING: The good news for Silicon Valley commercial real estate is that a big new office building in San Jose has found a tenant but the bad news is that it’s TikTok, the embattled social media company under threat from Congress. (The Mercury News)

WHO’S WHO WHODUNNIT: A mysterious series of federal subpoenas issued in the Napa Valley include many bold-faced names among some of the most prominent wineries and wine makers. (Los Angeles Times)

FIRST WORLD PROBLEM: A suit filed in federal court in San Francisco complains that aspiring buyers of Birkin handbags are being illegally forced to buy scarves, belts, jewelry and other products from Hermes to establish a shopping relationship before they can acquire one of the prized purses. (San Francisco Chronicle)

 

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