Gavin Newsom has left the chat

Your afternoon must-read briefing on politics and government in the Golden State
Jul 03, 2024 View in browser
 
POLITICO California Playbook PM

By Lara Korte and Dustin Gardiner

Programming note: We’ll be off this Thursday and Friday for the Fourth of July but will be back in your inboxes on Monday.

California Gov. Gavin Newsom speaks to reporters in the spin room after a presidential debate between President Joe Biden and Republican presidential candidate former President Donald Trump in Atlanta, Thursday, June 27, 2024.

California Gov. Gavin Newsom pulled his public safety ballot measure Tuesday night as he left the state. | AP

WHAT JUST HAPPENED?: The Capitol today is reeling from Gov. Gavin Newsom’s abrupt decision to pull his public safety ballot measure the night before the vote as he left for Washington to support President Joe Biden. 

The whiplash hit late last night after a marathon day of committee hearings. Many lawmakers were on their way home or heading to dinner when they were called into Democratic caucus meetings around 8 p.m., where Senate leader Mike McGuire and Assembly Speaker Robert Rivas delivered the news.

The announcement — which landed about an hour after Newsom said he was leaving for Washington — left many Dems in the Legislature frustrated and confused. Some had spent the week whipping votes for the governor and were prepared to stay late on Wednesday so they could place the measure on the November ballot before the July 4th holiday and monthlong summer recess.

“The houses were on track to approve it,” said one Capitol insider familiar with discussions around the move. “And the governor pulled the plug.”

The insider said legislative leadership had been following Newsom’s lead, but that some rank-and-file lawmakers privately grumbled about the administration’s quickly shifting strategy to try to fend off a more punitive ballot measure backed by prosecutors. Newsom’s decision to scrap his own measure caught many off guard.

When asked for more insight on the decision, Newsom’s office directed POLITICO to a lengthy statement he released Tuesday night, which said proponents of the counter-measure ran out of time to add amendments that would have ensured its success.

He did not elaborate on the amendments or why they were critical.

Behind the scenes, the measure was facing pushback from both moderate and progressive sides of the Democratic caucus.

The Legislative Black Caucus said Tuesday it did not support Newsom’s measure, arguing that it would disproportionately harm people of color even though it was less sweeping than the one backed by the district attorneys.

Shortly before it was pulled, Black Caucus Chair Lori Wilson said she personally planned to support Newsom’s measure because she saw it as the best way to mitigate the more drastic measures proposed by the DAs.

But in an interview today, Wilson said she was relieved to learn that it had been dropped and that she would “have no hand in harming anyone.”

"Now it is about killing this measure that will absolutely do harm and it will take generations to recover from," she said.

But the ordeal has left many legislative Democrats feeling jaded that they did the governor’s bidding with nothing to show for it. Some members, including vulnerable Democrats, also took hard votes on amendments Newsom sought in legislation to curb retail theft — only for the governor to later pull back those proposals.

For months, legislators have grown increasingly disillusioned by Newsom’s efforts to grow his national name ID before a widely anticipated presidential run in 2028. One Democratic lawmaker, granted anonymity to speak candidly about recent events, said Newsom’s decision to pull the ballot measure and travel to D.C. to be with Biden amid the post-debate fallout hit a nerve.

“I think the governor has been focused on wanting another job, so he's not doing the job that he currently has,” the lawmaker said.

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 lkorte@politico.com and dgardiner@politico.com.

 

Understand 2024’s big impacts with Pro’s extensive Campaign Races Dashboard, exclusive insights, and key coverage of federal- and state-level debates. Focus on policy. Learn more.

 
 
WHAT YOU NEED TO KNOW TODAY

TICK TICK: It’s do-or-die time for state lawmakers trying to pass two $10 billion bonds to fund school and climate-related infrastructure ahead of today’s deadline.

Ahead of this afternoon’s floor sessions, backers of the education and climate proposals said they believed they had enough votes to get the measures on the ballot. The Assembly-authored school bond cleared the Senate late this afternoon and heads back to the Assembly for a final vote, while the climate language — spearheaded by Senate negotiators — is in the Assembly.

Neither measure appears to be in real peril, especially after the education bond was sent back to its house of origin, but there has been some last-minute infighting between the two houses.

Many rank-and-file assemblymembers favor the education bond, while senators favor the climate bond, and members from each chamber threatened to pull support for the other chamber’s measure over various policy grievances.

Capitol Advisors CEO Kevin Gordon, who lobbies for school districts and supports the education bond, said earlier in the day he doubted either bond was at risk of going down.

“We always see this kind of 11th-hour posturing, which members use to express their priorities,” Gordon said of final bond negotiations in years past.

Things aren’t all smooth for the climate bond, as dozens of organizations involved in negotiations pulled their support over disagreements about final funding numbers. Around 30 of the roughly 180 environmental and social justice groups that had lobbied for a joint proposal decided to hold off on signing a letter in support of the final language.

Assemblymember Eduardo Garcia, a lead bond negotiator who authored his chamber’s original climate proposal, said during a Tuesday hearing that there was “some consternation” around the amount of funding for programs to combat extreme heat. The final bond includes $450 million in that section, far less than the $1 billion environmental groups had hoped for. — Alex Nieves and Blake Jones

CAMPAIGN TRAIL

ABOUT THAT D.C. TRIP: Newsom and Democratic governors gathered at the White House today in a show of force for President Biden after his devastating debate performance last week.

The governors held a closed-door meeting with Biden and Vice President Kamala Harris. Newsom didn’t speak afterward, but Govs. Kathy Hochul of New York, Tim Walz of Minnesota and Wes Moore of Maryland reiterated the governors’ support for Biden, asserting they were confident in his abilities while acknowledging he had a bad debate night.

“I heard three words from the President: he’s all in,” Newsom said in a statement. “And so am I. Joe Biden’s had our back. Now it’s time to have his.”

Newsom, one of Biden’s top surrogates, is scheduled to hit the campaign trail in Michigan, Pennsylvania and New Hampshire over the July 4th holiday and weekend. The governor’s camp said he has raised more than $10 million for Biden and down-ballot Democrats this cycle.

ON THE BEATS

A sign posted on browning grass outside the state Capitol in Sacramento, Calif., on Tuesday, July 5, 2022, notes watering restrictions are in place. California is in the middle of an ongoing drought and the state has banned watering of some types of grass. (AP Photo/Rich Pedroncelli)

The California State Water Resources Control Board adopted rules Wednesday to require residents conserve more water. | AP

EVERY DROP COUNTS: Californians will have to cut down on their water use — and not just in drought years — after water regulators passed conservation rules for cities this morning.

Aimed at making “conservation a way of life,” the rules are meant to replace emergency drought orders and will require 405 urban water agencies to meet gradually lower water budgets, starting in 2035.

Some agencies would be able to avoid water-use reductions; others would need to reduce water use 30 percent or more. Inland water agencies will generally have a heavier lift than coastal ones, largely because those areas tend to use more water outdoors during hot and dry summers.

Water Resources Control Board member Laurel Firestone called the rules “transformational” and said they would help California adapt to a more water-scarce future.

Water agencies, though, said they expected the rules to be challenging and costly. Environmentalists pleased with the overall direction said they were concerned about how the changes would affect shade trees. — Camille von Kaenel

SENDING A MESSAGE — GOP Rep. Ken Calvert said his Southern California office was vandalized by anti-Israel protests over the weekend. Photos from his team show a side door to his office in Corona was spray-painted with messages including “Free Palestine.”

“I want to make myself clear: my support of Israel is steadfast and attempts to intimidate me or my staff by vandalism will not deter me,” Calvert said in a statement. “Antisemitic hate has festered all across the country because radical leftists lack the moral clarity to stand for what’s right.”

Calvert added that his team will be working with law enforcement to ensure those involved are held responsible. — Mia McCarthy

What We're Reading

The Biden replacement talk is getting real: The president told a key ally this morning he was weighing whether to stay in the race, The New York Times reports. A White House spokesperson said the claim was “absolutely false.”

Biden’s advisers are working overtime to quell the panic gripping top Democrats. The campaign sent an all-staff memo this morning that included internal polling showing Biden and Trump are still in a tight race (despite a slip in multiple external post-debate polls). The president himself joined a Zoom call today to tell campaign and DNC staff he’s staying in the contest. (POLITICO)

Meanwhile, the list of doubters continues to grow. Democratic megadonor and Netflix co-founder Reed Hastings today called on Biden to step aside and allow a “vigorous Democratic leader” to take over the ticket. (The New York Times)

So, who would replace Biden if he dropped out? Social media is buzzing with “K-Hive” chatter supporting VP Kamala Harris, including an edit of her meme-able “coconut tree” remarks set to Charli XCX’s “von dutch.” She also has a cash advantage over other replacement options: CNBC reports Harris’ past donors are privately strategizing for a potential run, and as NBC reported this week, Harris would likely have access to most of Biden’s campaign war chest. Your move, Gavin Newsom.

AROUND THE STATE

— Tech companies announced plans to nix more than 7,000 jobs in the Bay Area from April through June this year, the highest quarterly layoff totals for the region since early 2023. (East Bay Times)

— The Los Angeles school district has shelved an AI chatbot designed to promote student success after the company backing it collapsed. (Los Angeles Times)

— The founding duo behind Bitwise Industries — a Fresno-based tech startup that went broke last year — has reached a plea agreement with the U.S. Department of Justice on charges of deceiving investors to secure loans and other financial support. (Fresno Bee)

— Nearly a quarter of homeless adults in Los Angeles County report having a serious mental illness. (LAist)

— compiled by Tyler Katzenberger

 

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