The big-ticket budget cut where Newsom and Democrats are miles apart

Presented by SEIU-UHW: Inside the Golden State political arena
Jun 10, 2024 View in browser
 
POLITICO California Playbook

By Dustin Gardiner and Lara Korte

Presented by SEIU-UHW

Inmates walk around a recreation yard at the Deuel Vocational Institution in Tracy, Calif.

Prison spending cuts have emerged as a central point of disagreement between Gov. Gavin Newsom and legislative leaders as they negotiate a plan to address California's massive budget deficit. | Rich Pedroncelli/AP Photo

THE BUZZ: PRISON BREAK — Democratic leaders in Sacramento are hoping to finally get their way in drastically slashing prison spending with a major deficit offering leverage over Gov. Gavin Newsom. But it comes at an awkward time politically.

As the Legislature works this week to pass some form of budget ahead of a June 15 deadline (or forego their paychecks), prison spending cuts have emerged as a central point of disagreement with Newsom. Lawmakers reckon they can push the governor further than in previous years to fulfill a longtime progressive goal of cutting spending on California’s massive prison system.

But the arm wrestle over the corrections budget is also happening as both the governor and those Democratic leaders are looking to increase penalties for some types of crime, including for selling fentanyl and engaging in serial retail theft — meaning more people could land in prison for longer.

Democratic lawmakers argue that the $14.5 billion budget of the California Department of Corrections and Rehabilitation has long been bloated, noting that the agency is expected to have nearly 15,000 empty beds in the next fiscal year, according to a recent report from the nonpartisan Legislative Analyst’s Office.

Newsom and prior governors have, for many years, bucked the requests of liberal lawmakers who want to slash how much money the state spends on incarcerating people, arguing they are instead focused on using the corrections budget to improve prison conditions and reentry programs for former inmates.

This year, Newsom is on board with reducing funding, but has only proposed $80.6 million in cuts for corrections, compared with the $1 billion that Assembly Speaker Robert Rivas and Senate President Pro Tem Mike McGuire floated in their joint legislative plan.

Lawmakers think they have an advantage this year because the state’s shortfall has forced California leaders to pick from a painful menu of budget cuts. The legislators argue deeper cuts to prisons could help alleviate the pain in other areas, such as homelessness programs and other safety-net services for the most vulnerable Californians.

“This should have happened before, but no time like the present to right-size CDCR’s budget,” Senate Budget Chair Scott Wiener told Playbook. “We know that our prison population is down, but the budget keeps going up.”

H.D. Palmer, a spokesperson for Newsom’s Department of Finance, declined to discuss details of the Legislature’s counter-proposal amid ongoing negotiations.

Palmer said, however, that Newsom’s proposed $80.6 million cut for CDCR — the result of axing 4,600 prison beds or 46 housing units across 13 prisons — will decrease the number of inmates per prison so facilities can focus more on rehabilitation programs to better prepare inmates to “successfully rejoin their communities” after their sentence is served.

There’s also Newsom’s close alliance with the California Correctional Peace Officers Association, the union for prison guards. The association has long backed Newsom and has contributed heavily to his campaigns in the past. Last year, his administration backed a new contract for the state’s roughly 26,000 correctional officers that includes a host of perks, including $10,000 bonuses.

Assemblymember Mia Bonta, who previously chaired the Budget Subcommittee on Public Safety, has been among the most vocal lawmakers demanding prison cuts. She said it’s paradoxical that CDCR’s budget has often grown in past years while the prison population has fallen: There are about 93,000 people in state prisons today, compared with 165,000 nearly two decades ago.

Bonta said she and other lawmakers are frustrated by what she called the state’s “prison industrial complex” and a reluctance to close more prisons. She added, “It signals to me, and I’m sure makes other Californians wonder, whether we care more about buildings than people.”

GOOD MORNING. Happy Monday. Thanks for waking up with Playbook.

You can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte.

WHERE’S GAVIN? Nothing official announced.

 

A message from SEIU-UHW:

The Healthcare Minimum Wage Law is set to give hundreds of thousands of our caregivers a raise on July 1st. This pay increase is long overdue for workers and more important than ever for patients, whose care is being jeopardized every day by the short staffing crisis. A $25/hour minimum wage will ensure that facilities across the state can retain experienced staff and attract new workers to the field. Learn more.

 
FOR GOOD MEASURE

Joni Boettcher (left) kisses Tika Shenghur during a protest march.

Prop 8 ballot language returns to voters almost two decades later. | Kevork Djansezian/AP Photo

NOT FIGHTING THE PAST — California voters will decide this November whether to repeal the zombie text of Proposition 8 from the state Constitution. The ballot measure returns to voters almost two decades after they decided to approve the one-sentence ban on same-sex marriage that became California law in 2008.

Prop 8 was eventually overturned by the courts, but its passage was a triumph for conservative groups and religious organizations like the Mormon and Catholic churches. This time around, however, many conservative groups aren’t putting up a fight. Our colleague Sasha Issenberg explores that fascinating shift in a piece for POLITICO Magazine. It’s an evolution that speaks to how the LDS and Catholic churches have warmed up to gay rights, albeit in subtle ways, as well as a realization that opponents aren’t willing to invest in fighting the pro-LGBTQ+ measure.

NEWSOMLAND

California Gov. Gavin Newsom is aiming to make the state carbon-neutral by 2045.

Gov. Gavin Newsom hasn't said where he stands on a bill that would stop so-called “forced outing” policies at local school boards. | Rich Pedroncelli/AP

CAN’T READ HIS POKER FACE — Speaking of the effort to repeal Prop 8’s vestiges, Newsom joined LGBTQ+ leaders in San Francisco on Friday for an event to launch the campaign in support of the Freedom to Marry ballot measure. Queer lawmakers like Wiener, Assemblymember Evan Low and former Senate Pro Tem Toni Atkins heaped praise on the governor for his historic decision to marry same-sex couples at San Francisco City Hall as mayor back in 2004.

But for all of Newsom’s historic allyship, LGBTQ+ legislators are still waiting, with somewhat bated breath, to figure out where he stands on a bill that would stop so-called “forced outing” policies at local school boards.

Playbook asked Newsom about the bill at Friday’s press conference. He declined to comment — leaving open the question of whether his close alliance with the community could be tested this session.

“We, as you know, don’t comment on bills,” Newsom said. “I look forward to what lands on my desk.”

Last year, top aides for Newsom played a crucial role in influencing the LGBTQ caucus’ decision to hold a similar bill. Also last session, the governor shocked his allies in the community when he vetoed a separate transgender rights bill related to child custody decisions. A Newsom spokesperson at the time said it was “imperative to turn down the noise of the culture wars.”

The revived effort, carried by San Diego Democrat Chris Ward, would prohibit any local policy that requires teachers and school staff to notify a student’s parents about their sexuality or gender identity without the student’s consent.

 

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ON THE AGENDA

FLOOR SESH — The state Assembly and Senate will hold floor sessions at 1 p.m. and 2 p..m., respectively. Midnight Saturday is the deadline for both chambers to approve some form of budget legislation. If they fail to meet that deadline, lawmakers must forfeit their pay and per diem compensation.

A TALE OF TWO MAYORS — San Francisco Mayor London Breed and Los Angeles Mayor Karen Bass will speak about their priorities related to housing, homelessness and transit during a joint event at Manny’s in San Francisco’s Mission district.

CLIMATE AND ENERGY

GAS PRICE BOOGIE — The California Energy Commission is predicting more stable gas prices this summer than the last two years. If that holds true, it’s good news for Democrats in November. Read more in the latest California Climate.

TOP TALKERS

Rep. Nancy Pelosi speaks with reporters.

Republicans have spent the last three years attempting to portray then-Speaker Nancy Pelosi as singularly responsible for the security breakdown on Jan. 6, 2021. | Francis Chung/POLITICO

— Previously unaired footage of the Jan. 6 attack on the U.S. Capitol depicts harrowing moments as then-Speaker Nancy Pelosi grilled a top aide about when the National Guard would arrive. (POLITICO)

— A judge has ordered a temporary halt to a growing academic worker strike at the University of California, where employees have walked off the job at several campuses related to concerns about pro-Palestinian demonstrations. (POLITICO)

AROUND THE STATE

— A Disneyland employee died after falling from a moving golf cart in a backstage area. Anaheim police are investigating the incident. (The Orange County Register)

— Stanford has joined a host of Ivy League schools that are once again requiring applicants to submit SAT or ACT standardized test scores.

— Fresno Police Chief Paco Balderrama is embroiled in a scandal as an independent investigation reviews an allegation that he had an “inappropriate off-duty relationship.” (The Fresno Bee)

 

A message from SEIU-UHW:

California’s short staffing crisis affects patients everywhere by delaying care and putting unsustainable strain on our caregivers. With the skyrocketing cost of living we’re seeing across California, it’s more important than ever to make sure healthcare workers are being paid a liveable wage. Not only will that help hundreds of thousands of workers take care of their families, it will improve patient care by keeping caregivers on the job and encouraging more Californians to join the industry.

Additionally, the impact on the state budget has been exaggerated, with much of the costs predicted to be offset by workers no longer relying on state-funded services like Medi-Cal after receiving higher wages. See this in-depth UC Berkeley Labor Center report for more details.

 
PLAYBOOKERS

PEOPLE MOVES — Jeff Le is starting at SecurityScorecard as VP for global government affairs and public policy. He was most recently director of government affairs at Conduent and was a deputy cabinet secretary to Gov. Jerry Brown.

— Joshua Baum is now the director of public policy and community development at Zenith Economics, LLC. He was previously a principal at Hilgard Analytics.

— Samuel Maury-Holmes is now the Founder at Zenith Economics, LLC. He was previously a practice lead at Beacon Economics.

BIRTHDAY — Sasha Obama

BELATED B-DAY WISHES — (was Sunday): Aaron Sorkin ... Natalie Portman ... Raphael Ouzan … Google’s Ria Strasser-GalvisBrad Gallant

(was Saturday): Rep. Ken Calvert (R-Calif.) … Julianna MarguliesMel Levine Kaitlin Kirshner Chris Ortman Elizabeth Thorp Helga Zheutlin

WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form. Disclaimer: All information will be verified.

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 subscriber-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 Rebecca Haase to find out how: rhaase@politico.com.

 

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