The ballot measure Gavin Newsom killed

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Nov 18, 2024 View in browser
 
POLITICO California Playbook PM Newsletter Header

By Will McCarthy and Emily Schultheis

A campaign mailer from the No on Prop 33 committee, featuring Gov. Gavin Newsom speaking at a podium and a quote from Newsom that reads, "Prop 33 reverses California's progress on housing."

Gov. Gavin Newsom became a public face of the No on Prop 33 campaign, appearing in ads and mailers that opposed the rent-control measure. | No on 33 mailer

GAVIN’S BALLOT SCORECARD — Of all the issue questions on the November ballot, Gov. Gavin Newsom ended up being the face of just one.

It wasn’t Proposition 3’s amendment to enshrine marriage equality, the issue that shaped his early political career (although he did appear at a few events for the Yes campaign). Nor was it the tough-on-crime Proposition 36 , against which he railed in press conferences. Instead, in a break from his own party, Newsom’s face was plastered on ads and mailers advocating for a vote against the Proposition 33 initiative to expand rent control.

It is an odd endpoint for a year in which Newsom played just about every role possible in California’s ballot-measure drama, from headliner of his own production to scriptwriter trying to write people in and out of the show to a heckler attempting to throw other performers off their lines without taking the stage himself.

The box-office returns were mixed. Newsom’s efforts to shape the fall ballot yielded some major successes and one notable, humiliating failure, but his low-key entry into the Prop 33 battle may have proven decisive.

“The governor killed rent control in California,” said Susie Shannon, a policy director and organizer for Yes on 33.

Following a close call over his Prop 1 mental-health package in March, Newsom appeared intent on reducing the choices before voters in November in part so a few key progressive priorities would not get caught up in the year’s anti-establishment churn.

He claimed some significant wins along the way. A Newsom lawsuit led the Supreme Court to throw a California Business Roundtable-backed measure off the ballot, and his team struck deals that kept initiatives on pandemic preparedness and a high-school financial-literacy curriculum from reaching voters. He was part of a campaign that helped scare away a referendum on oil wells . A constitutional amendment about changing voter thresholds was pushed to the 2026 ballot at Newsom’s request.

There was also one notable, very public failure. Despite Newsom’s best efforts to strike a deal with the proponents of a tough-on-crime measure — and his quixotic, quickly abandoned effort to launch a last-minute competing measure — he could not stop the initiative that became Prop 36.

Once the ballot was finalized, Newsom grew reticent about becoming too involved in the ballot-measure sphere. He staked out official positions on only three of the ten questions. “I haven’t come out publicly against it, but I’m implying a point of view,” he said at a press conference about one of the other seven. “Perhaps you can read between those many, many lines.”

Newsom spoke out more forcefully against Prop 36, but largely within the confines of his existing schedule rather than campaign stops or media appearances organized by a No on 36 committee directed by some of his top political allies (like his pollster David Binder, one-time deputy chief of staff Lindsey Cobia and former spokesman Anthony York).

Ultimately it was in the Prop 33 fight where Newsom emerged as a central figure. Newsom had come out against a previous iteration of the rent control initiative, and both sides made efforts to woo him when the issue returned to the ballot this year. The Yes on 33 campaign even delivered over 700,000 letters from renters to his office last fall, a stunt seen as an attempt to at least keep him on the sidelines.

The California Apartment Association-backed No on Prop 33 committee ultimately won Newsom’s backing. Neither the governor nor campaign ever issued a press release to announce he was taking a stand, and he never joined a press conference or rally on its behalf. Instead, as ballots were going out in early October, voters just started seeing him in ads arguing the initiative would roll back Newsom’s achievements in affordable housing.

“When a campaign gets an endorsement, they use it,” Nathan Click, a spokesperson for No on 33 as well as for Newsom’s political operation, said of the low-key rollout.

At the time, public polling showed the race relatively even with a high number of undecided voters. Those on both sides of the Prop 33 conflict speculate that Newsom’s endorsement helped push a meaningful number of them away from the rent-control initiative. Other ballot-measure campaigns may have had the governor’s words on their side, but none claimed the resources No on 33 had to put Newsom’s endorsement before voters across the state.

NEWS BREAK: Alameda County DA Pamela Price concedes in recall voteAtmospheric river will bring rain, snow to Northern California … PPIC: California voter turnout sank in 2024.

Welcome to Ballot Measure Weekly, a special edition of Playbook PM every Monday focused on California’s lively realm of ballot measure campaigns. Drop us a line at eschultheis@politico.com and wmccarthy@politico.com, or find us on X — @emilyrs and @wrmccart.

 

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TOP OF THE TICKET

Seven lingering questions we have about this year’s ballot-measure results.

1. What has Michael Weinstein learned? The ballot-measure provocateur lost by his largest margin yet on a state rent control initiative, and Prop 34 targeting his political spending is well on its way to passing. Thus far, Weinstein and the AIDS Healthcare Foundation have blamed their losses mostly on the money spent by corporate landlords, offering little indication he would change his tack in 2026 if the so-called “revenge measure” doesn’t succeed in sidelining him.

2. Could labor have saved Prop 32? Not much separates the minimum-wage initiative’s looming defeat from a possible victory, and some of the state’s powerful unions must be wondering if a modest cash investment — or even having their names listed on the ballot as proponents — could have helped deliver a pay boost to 2 million Californians.

3. Did Prop 36 have coattails? The measure to impose harsher penalties for repeat offenders wasn’t directly related to the proposed ban on forced prison labor. But Prop 6’s backers say the tough-on-crime debate changed the conversation around their campaign for the worse. Should they have seen that collision coming?

4. Are bonds back? The close call over March’s Prop 1 gave a scare to those asking voters to approve new borrowing. But the two measures both passed comfortably, with just under 60 percent support. Were conclusions about voter austerity oversold? Or do campaigners asking voters to approve new spending now know just to stay away from primary ballots?

5. So why did Prop 5 go down? Voters’ willingness to back spending measures didn’t extend to the constitutional amendment to make it easier to pass local housing and infrastructure bonds. Would proponents have fared better without a fiscal impact statement saying the amendment could lead to higher property taxes?

6. What are Uber and Lyft up to? The companies behind the biggest-spending initiative campaign in state history were far less aggressive in their efforts to defeat a new tax from the city in which both are based. The two companies lost the fight over San Francisco’s Prop L, but they avoided the tax on a technicality. Whether they’ve lost their appetite for ballot conflict remains to be seen.

7. What’s in the LA air? LA County is poised to narrowly pass Measure G to expand its Board of Supervisors, after many unsuccessful attempts to restructure the powerful body, while the city of Los Angeles passed its own slate of ethics-related measures. Institutional reformers may see this as an invitation to head back to the ballot for more.

DOWN BALLOT

ON OTHER BALLOTS — The red wave that helped propel Donald Trump into the White House and likely handed Republicans control of Congress left ripple effects on the slate of nearly 150 ballot measures across the country, Emily reported along with POLITICO’s Mona Zhang and Lawrence Ukenye.

Efforts to replace partisan nominating contests with open primaries and introduce ranked-choice voting appeared to be failing in all but the District of Columbia . Measures to legalize cannabis went down in three of the four states in which they were on the ballot. Minimum-wage increases were on track to be rejected in California and Massachusetts — though, ironically, they succeeded in some conservative states. And in a year when crime and immigration played a major role in the national campaign, voters in states with ballot measures addressing those questions — including deep-blue California — opted for right-leaning positions.

This year’s results raise questions about how Democrats and progressives shut out of power at the national level will use ballot measures to push back in the coming years, and how many of these issues will return to voters’ ballots in 2026 and beyond. Read the full round-up here.

POSTCARD FROM ...

A map of the state of California, with nine cities pinpointed to correspond with the locations of local ballot measures mentioned in the item.

… AROUND THE STATE — Throughout the year, we’ve used our postcard feature to provide a ground-level look at interesting measures on California’s city and county ballots. Here’s how they fared on Election Day ( check out our first post-election installment from last week):

  • San Francisco’s Prop K, which would transform a stretch of road along the city’s Pacific Coast into a permanent public park, appears headed for passage. Precinct results show the measure heavily supported by voters in downtown neighborhoods but opposed by those closest to the proposed park.
  • A special tax to fund the beloved Hayfork park and pool improbably met the two-thirds threshold for passage, earning 75 percent of the vote. A new $30 tax per parcel in the town will go into effect next year. 
  • Yreka’s Measure V to fund the fire department appeared to be headed for passage with more than 80 percent of the vote. This would mean the city could hire staff for what, until now, has been an entirely volunteer-run outfit.
DEBRIEFING

… THE TEAM THAT PASSED PROP 2 — The $10 billion bond passed by a wide margin only four years after voters shot down a different attempt at a statewide bond for school repair. We talked with the people behind the campaign about what was different this time, and how they approached it. 

This conversation has been edited for length and clarity.

Playbook: What do voters think about bonds right now? 

Jeff Gozzo, general consultant for Yes on Prop 2: We did see in our research that voters overwhelmingly support the need for more funding for public education. We also saw there is confusion about what bonds are. A majority of voters thought these bonds were also a tax increase.

Playbook: How much did you feel you had to sell voters on specific items in the bond versus the broad objectives?

Gozzo: The job of the Yes campaign is to tell voters in as clear and concise a way as possible what a "yes" vote does. We spent 95 percent of our resources making sure that it was very clear that this was about the basics: mold, asbestos, fixing these leaky ceilings.

Playbook: Any concerns about overpromising? Obviously a $10 billion bond won't completely fix all of California’s schools.

Molly Weedn, communications director for Yes on Prop 2: I don't think there was ever any framework from our messaging in which we tried to make this seem like this was the magic pill that was going to fix everything. But it's a step in the right direction.

Playbook: You shared the ballot with another, similarly sized climate bond. Did voters compare them?

Weedn: I think there was a lot of that comparison that happened in Sacramento as they were moving through the legislative process. When it gets to the voters, it becomes how the issue impacts them and their communities.

Playbook: There were dozens of local school bonds this cycle, too. How did you view those?

Nick Hardeman, campaign manager for Yes on Prop 2: Although not every local measure was successful, a big chunk of them were. Voters are going to continue to prioritize education.

Playbook: What was different this time since the failed school bond in March 2020?

Gozzo: This was a general election ballot with presidential turnout. Many more voters had an opportunity to weigh in on Prop 2 than did weigh in on Prop 13.

Weedn: Voters had also approved the last school bond just 4 years prior in 2016. Now in 2024, it’s been eight years, the needs are still there and have gotten worse, and new things have come up, too. The urgency has increased.

Playbook: Is the lesson that those looking to fund school projects wait another 8 years?

Hardeman: This is something that the Legislature is going to be looking at. Prop 2 was a need-based proposition. That need assessment will be done over the course of the next few years to be able to determine when that next time period should be.

 

Policy change is coming—be the pro who saw it first. Access POLITICO Pro’s Issue Analysis series on what the transition means for agriculture, defense, health care, tech, and more. Strengthen your strategy.

 
 
LETTER OF THE DAY

Measure Z was used on ballots around the state this month to describe proposals that would: Extend Berkeley’s first-in-the-nation soda tax beyond its current sunset date of 2026 (likely passed) … Approve a $158 million school improvements bond in Encinitas, San Diego County (likely passed) … Implement a 1-cent sales tax increase in the unincorporated areas of Tuolumne County for the next 20 years (likely failed)...

Reauthorize a ½-cent sales tax in Yucca Valley , San Bernardino County, that would reduce local sewer costs for residents (likely passed) … Approve a $70 million school bond in Petaluma, Sonoma County (likely passed) … Introduce a ½-cent sales tax in Orange, Orange County, to fund police and paramedics ( likely failed) …

Approve $347 million in new borrowing by Cupertino, Santa Clara County, to expand STEM education (likely passed) … Enact a ¼-cent sales tax increase in Glendora, Los Angeles County, to address “quality of life issues” including streets, homelessness and public safety ( likely passed) … Issue $22 million in bonds in Siskiyou County to renovate schools (likely passed) ... And impose a new 2-cent-per-bottle soda tax in Santa Cruz ("yes" side leading narrowly).

 

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