News : POLITICO California Playbook: CONGRESS sends help — NEWSOM quarantined again — CALEG delayed already — GARCETTI: What happened?

Monday, December 21, 2020

POLITICO California Playbook: CONGRESS sends help — NEWSOM quarantined again — CALEG delayed already — GARCETTI: What happened? — SILICON VALLEY’s ‘Texit’ problem

Dec 21, 2020

By Jeremy B. White, Carla Marinucci, Graph Massara and Mackenzie Hawkins

THE BUZZ — A long-awaited federal aid package will soon bring California both relief and frustration.

For months, elected officials from Gov. Gavin Newsom to county supervisors have stressed the need for Congress to shore up their deteriorating financial situations. State and local governments are constrained by the imperatives of balanced budgets, but the feds don't face that limit on their capacity to spend. Politicians and fiscal planners have urged Congress to help them avert more painful cuts to jobs and services, which they worry could hamstring a faltering recovery.

Help is finally on the horizon — just not exactly what governors and mayors envisioned. The $900 billion coronavirus aid package that came together this weekend, finally breaking a monthslong congressional impasse, includes direct payments to individuals, loans for businesses, money for schools and hospitals, bolstered unemployment benefits and rental assistance. But direct aid to state and local governments didn't survive the negotiations, with some Republicans decrying the lifeline as a blue state bailout. Here's POLITICO's Burgess Everett, Andrew Desiderio and Melanie Zanona with the details.

The U.S. Capitol is seen on Sunday, Dec. 20, 2020, in Washington.

The U.S. Capitol is seen on Sunday, Dec. 20, 2020, in Washington. | AP Photo/Jose Luis Magana

Make no mistake: The help for out-of-work Californians, desperate renters and reeling businesses will be vital as the state slogs through this trying winter of soaring cases and economy-decimating lockdowns. The hope is the extra money can be a bridge to a not-too-distant future of mass vaccinations. California's budget is also less grim than anticipated, with a surprising surplus brightening the picture as Newsom prepares to unveil his blueprint early next month.

But that windfall hasn't eliminated deep structural deficits that are likely to persist for years, and it doesn't pull California out of a recession that's also likely to linger. Some $11 billion in cuts and deferrals already went through this year because no help came by mid-October. Now California politicians are on the lookout for another round spearheaded by a Biden administration, and Newsom will likely need to manage a renewed push by organized labor and allies for a revenue-generating wealth tax — all factors that will be in play as the budget process gets going.

BUENOS DÍAS, good Monday morning. Sacramento was buzzing about potential political reprisal over the weekend after Assemblymember Adam Gray, recently deprived of his Governmental Organization Committee chairmanship, accused Speaker Anthony Rendon of allowing new chair Jim Frazier to let go of a pregnant committee staffer in what Gray called a "disgusting" and "indefensible" decision reflecting "petty infighting occurring within our caucus." Rendon's office said the staffer will receive pay and benefits while looking for a new job, which satisfied some in the Capitol but left others still wanting more information.

QUOTE OF THE DAY: "For a long time, there's been this aura around Eric Garcetti that he's somebody with a great future, that he will ascend to great heights of power. And in the world of politics, that means that everybody's nice to him and lots of people like to be around him. And then that feeds the sense that he's somebody of consequence." Los Angeles-based Democratic strategist Darry Sragow. More below.

TWEET OF THE DAY: Speaker Nancy Pelosi @SpeakerPelosi joins the ranks of the vaccinated: "Today, with confidence in science & at the direction of the Office of the Attending Physician, I received the COVID-19 vaccine. As the vaccine is being distributed, we must all continue mask wearing, social distancing & other science-based steps to save lives & crush the virus."

WHERE'S GAVIN? Nothing official announced.

PROGRAMMING NOTE: California Playbook will take a holiday hiatus from Thurs. Dec. 23-Friday Jan. 1. We'll be back on our normal schedule on Monday, Jan. 4.

EVERYONE IS TALKING ABOUT TRANSITION PLAYBOOK, SUBSCRIBE TODAY: A new year is quickly approaching. Inauguration Day is right around the corner. President-elect Joe Biden's staffing decisions are sending clear-cut signals about his priorities. What do these signals foretell? Transition Playbook is the definitive guide to the new administration and one of the most consequential transfers of power in American history. Written for political insiders, this scoop-filled newsletter breaks big news daily and analyzes the appointments, people and emerging power centers of the new administration. Track the transition and the first 100 days of the incoming Biden administration. Subscribe today.

TOP TALKERS

QUARANTINED AGAIN — "Newsom enters another quarantine after exposure to staff member who tested positive," by the SF Chronicle's Matthias Gafni: "The governor tested negative as did other staff members, a Newsom spokesperson said late Sunday."

— "California, hard-pressed cities lose in COVID stimulus deal as aid is left out," by the SF Chronicle's Alexei Koseff: "Congress' decision to leave out a fresh infusion of direct aid leaves California with difficult decisions as it faces down what analysts project will be a multibillion-dollar operating deficit over the next few years."

WHAT'S NEXT? — For Garcetti, there's no escape from L.A., by POLITICO's David Siders: Supporters and critics alike envisioned Garcetti escaping Los Angeles just in time — the term-limited mayor of a beleaguered city finding new life in Washington. Instead, Garcetti watched as the president-elect announced one pick after another for jobs he'd been in contention for, most recently as a domestic climate envoy or secretary of Transportation.

— "Its Football Season Over, Cal Wonders: Was It Worth It?" by NYT's John Branch: "After only four games, Cal's season ended just the way it started — with back-to-back game cancellations linked to the coronavirus, and a lingering question: Was that even worth the time, risk, energy and money?"

VYING FOR THE VACCINE … " The wealthy scramble for COVID-19 vaccines: 'If I donate $25,000 ... would that help me?'" by the LA Times' Maya Lau and Laura J. Nelson.

… AND NOT — "Anti-vaccine and alt-right groups team up to stoke fears of COVID-19 vaccine," by the LA Times' Anita Chabria.

CORONAVIRUS UPDATES

— "Stanford doctors protest vaccine plan, saying front line physicians and nurses are at the back of the line," by the SF Chronicle's Nanette Asimov.

SCHOOL STRUGGLES — " London Breed and parents rage after SFUSD again delays school openings," by SFGATE's Eric Ting: "Officials from the San Francisco Unified School District announced Friday that the city's schools would not move forward with plans to begin to reopen schools for in-person learning on Jan. 25 after the district and its teachers union failed to come to an agreement on a reopening plan."

— " L.A. teachers will spend more live time with students amid uncertainty over school reopening," by the LA Times' Howard Blume: "With children mired in distance learning and many struggling academically, Los Angeles teachers will take on more live online interaction with students next semester, under an agreement announced Friday."

FOOD FIGHT — " Appeals court issues stay, halting judge's order reopening San Diego County restaurants," by the San Diego Union-Tribune's Greg Moran, Lori Weisberg and Gary Warth.

— "They risk their lives cleaning hospitals. Now, they are getting vaccinated. 'I want people to know that we exist,'" by the LA Times' Brittny Mejia.

— "COVID patients are dying alone in Bay Area hospitals, with digital devices the only way to say goodbye," by the SF Chronicle's Tatiana Sanchez: "Visitors are largely barred from seeing COVID-19 patients because the virus is extremely contagious and often unpredictable. Some hospitals have found safe ways to allow a few visitors inside, though it's unclear if that will change as cases and deaths continue to climb."

— "Three COVID-19 tests for three different Californias," by the LA Times' Gustavo Arellano.

LA TIMES EDITORIAL — "ICUs are full and people are dying, but, sure, open the strip clubs."

TRANSITION TIME

KAMALA COMITY? — "Harris was a partisan in the Senate. Now she and Biden need Republican friends," by the LA Times' Noah Bierman and Jennifer Haberkorn: "Biden speaks at almost every turn about his four decades in the Senate, and the bipartisan achievements in that time, but it is Harris' recent, especially divisive experience that is arguably more relevant to their prospects for legislative bonhomie."

— "Kamala Harris faces challenging dynamics in White House full of longtime Biden allies," by NBC's Shannon Pettypiece: "One of her first challenges will be ensuring that she doesn't get relegated to the fringes of an administration filling up with longtime Biden allies and advisers, as has happened with past vice presidents, who have found themselves on the outside of major decisions and unable to secure achievements."

NICHOLS FALLOUT — California environmentalists quietly seethe at activists over Nichols losing EPA job, by POLITICO's Debra Kahn: California mainstream environmentalists have expressed their frustration and anger behind the scenes. But almost none was willing to publicly criticize the progressive movement nor openly advocate for Nichols in the final days before Biden made his decision. It's not clear how much effect the environmental justice letter had, but Biden's choice means California will not have one of its own leading U.S. EPA.

GAVINLAND

TROUBLE AHEAD? — "The pandemic fuels long-shot recall effort against Gov. Gavin Newsom," by the LA Times' John Myers: "The timing has proved lucky for the angry activists who launched a recall petition against the governor in the early spring, an effort recently joined by a cadre of professional Republican political consultants and fundraisers and boosted last month by a largely unnoticed court ruling."

— "Here are 12 consultants subject to Gavin Newsom's new lobbying ban — and one that isn't," by the Sac Bee's Sophia Bollag: "Jason Kinney, a longtime associate of Gov. Gavin Newsom, can continue to lobby the governor on behalf of his clients under a new policy Newsom rolled out last week because he is not currently paid by either the California Democratic Party or Newsom's campaigns."

— "Craft breweries sue Newsom, claiming reopening laws have discriminated against them," by the SF Chronicle's Esther Mobley.

CALIFORNIA AND THE CAPITOL CORRIDOR

— "It's a deal. Californians could see more unemployment payments, stimulus checks soon," by the Sac Bee's David Lightman.

DELAY AWAY — California Legislature delays January return due to coronavirus, by POLITICO's Jeremy B. White: This is a reminder that legislating in 2021, at least at first, will continue to involve a fluid schedule as the pandemic inevitably disrupts the usual rhythms. … Most of California is currently under a stay-at-home order as transmissions and deaths surge, and the Legislature has not been an island. Staffers have been notified of several Capitol workers testing positive in recent days.

— "FEMA to fund California's Project Roomkey hotels until COVID crisis ends, Newsom says," by the San Jose Mercury's Marisa Kendall.

GASCÓN REVERSAL — "LA County DA Gascon reverses course, allows prosecutors to seek sentencing enhancements in 'extraordinary' cases," via ABC 7: "In a memo, [George] Gascon said that effect immediately he would now allow deputy DAs to seek sentencing enhancements for hate crimes, child abuse, elder abuse, sexual assault, sex trafficking and certain financial crimes."

HOW MANY NURSES? — California hospital staff shortage triggers battle over nurse ratios, by POLITICO's Victoria Colliver: While bed space is limited, the more pressing shortage is of critical-care staff. The shortages are pitting the state against one of its most powerful unions on its most sacrosanct issue: California's nurse-to-patient ratio law.

— "Whack and stack: PG&E's toppling of trees creates new hazards," by CalMatter's Julie Cart: "Critics say that PG&E and other electric providers should be focusing less on the cheap stuff, like cutting trees, and more on upgrading its thousands of miles of old lines and aging equipment."

— "Drug overdoses in S.F. kill 58 people in November as fentanyl-fueled crisis breaks records," by the SF Chronicle's Trisha Thadani.

SILICON VALLEYLAND

— Why Silicon Valley could become tomorrow's Detroit, by POLITICO's Ryan Heath: Before the pandemic, mid-size cities across North America and Europe and major Asian centers would create startup accelerators only to struggle to retain their local talent or attract venture capital — one of the leading measures of success, pre-pandemic. Today it's more about keeping talent at your company, wherever that talent happens to be.

COUNTERPOINT — "'It's a colony': Why Texas won't take Silicon Valley's crown just yet ," by The Guardian's Gabrielle Canon: "Even some of the most easily recognizable names sprouting offices in those 'hills' still officially call the Bay Area home: Facebook, Apple, Google, and even Musk's Tesla aren't likely to shift the bulk of their businesses out of California any time soon."

— "Texit: Why high-tech giants are fleeing Silicon Valley for Texas," by the Independent's Graeme Massie.

HOLLYWOODLAND

— "Lawmakers Reach Deal On Covid-19 Relief That Includes $15 Billion For Movie Theaters, Live Venues," by Deadline's Ted Johnson.

CANNABIS COUNTRY

— Memo details executive branch actions Biden could take on cannabis policy, by POLITICO's Paul Demko: The policy blueprint calls for the Justice Department to issue a memo directing U.S. attorneys not to take enforcement actions against state-legal marijuana markets, similar to the Cole Memo, which was issued during the Obama administration but rescinded under the Trump administration. It also lays out a series of additional steps the Biden administration could take to overhaul federal cannabis policies without any action by Congress.

MIXTAPE

STILL NEED A GIFT FOR SOMEONE? — "The 10 best California books of 2020," by David L. Ulin in the LA Times.

— " Longtime owner of Chinatown institution Sam Wo doesn't want to stop working — but he might have to," by the SF Chronicle's Janelle Bitker.

hUC numbers soar, Cal State tumbles as pandemic upends college application season," by the LA Times' Teresa Watanabe and Nina Agrawal.

TRANSITIONS

Vedant Patel, a Democratic campaign communications veteran in California who served as a Biden campaign spokesperson here, is heading to the White House to become assistant press secretary, POLITCO's Quint Forgery reported. Joining him from California is Meghan Hays, who served as deputy communications director for strategic planning on the Biden campaign; she will serve as White House director of message planning.

TUNE IN TO NEW EPISODE OF GLOBAL TRANSLATIONS: Our Global Translations podcast, presented by Citi, examines the long-term costs of the short-term thinking that drives many political and business decisions. The world has long been beset by big problems that defy political boundaries, and these issues have exploded over the past year amid a global pandemic. This podcast helps to identify and understand the impediments to smart policymaking. Subscribe for Season Two, available now.

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