California Republicans undecided but excited

Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State

Mar 13, 2023 View in browser   By Lara Korte, Jeremy B. White, Ramon Castanos and Matthew Brown THE BUZZ: They might be outnumbered and underfunded, but California Republicans still have cause for hope. Delegates gathered in Sacramento over the weekend for their spring reorganizing convention, coming on the heels of a cycle where they managed to defend vulnerable incumbents and prevent the state’s formidable Democratic Party from gaining any more ground. Spirits were high in the Hyatt hotel in downtown Sacramento, with delegates dressed in red, white and blue and tables filled with merch like bedazzled Trump hats, buttons calling Anthony Fauci a “moron,” and rhinestone-encrusted purses shaped like guns and high heels. Aside from party elections — which delivered chair Jessica Millan Patterson a third term — not much official business came out of the convention. What stood out, instead, were the unknowns. Democrats are preparing for an all-out-brawl to replace Sen. Dianne Feinstein, but a viable Republican contender has yet to emerge. Reps. Adam Schiff, Katie Porter and Barbara Lee were the subject of several jokes and jabs at the convention, but there was little mention of who might stand a chance against any of them. Then there’s the matter of the presidency. California Republicans have a unique opportunity next year to influence the nominee in a way they haven’t before. With an early primary and large number of delegates, whoever can sweep California may have a serious advantage come convention time. Patterson said both former President Donald Trump and former U.S. Ambassador to the U.N. Nikki Haley have reached out to the party about campaigning in the state — but don’t expect any California GOP endorsement. The party is expected to make several down-ballot endorsements at the fall convention ahead of the 2024 primaries, but president will not be one of them. There was almost no talk of presidential candidates this weekend in Sacramento. Some polling points to the possibility of Florida Gov. Ron DeSantis being the state favorite, but many delegates insisted Trump maintains widespread support in California. Marty Miller, a Republican from Lincoln, was the only vendor selling DeSantis gear at the convention. He said Californians are holding back because they “just don’t know” how the primary will shake out yet. “They like Trump,” he said. “But he’s got to keep his mouth shut.” Foggy futures aside, there are a few tailwinds inflating the sails for the CA GOP — namely, Speaker Kevin McCarthy, who stepped onstage to uproarious applause Saturday. The Bakersfield Republican encouraged delegates to keep the faith and also got in plenty of jabs at California Democrats on oil prices, the budget deficit and high-speed rail. “The only thing I think Gavin [Newsom] spends more time on than high speed rail is spending time on his hair,” he said. BUENOS DÍAS, good Monday morning.  POTUS is in the house. Joe Biden is making a swing through the West this week, including several stops in SoCal. Today, he’ll be in San Diego to meet with British Prime Minister Rishi Sunak and Australian Prime Minister Anthony Albanese and highlight a nuclear submarine deal. Got a tip or story idea for California Playbook? Hit us up at jwhite@politico.com and lkorte@politico.com or follow us on Twitter @JeremyBWhite and @Lara_Korte.  QUOTE OF THE DAY: “A modern-day Thomas Edison.” McCarthy describing Tesla CEO Elon Musk on Saturday. TWEET OF THE DAY: Twitter WHERE’S GAVIN? Isolating after testing positive for Covid-19 last Wednesday.   PLAYBOOK MEET & GREET! Join California Playbook and POLITICO’s growing team in Sacramento at Smic’s Sip & Quip on Wednesday, March 22, 2023, for an evening of cocktails and conversation. As POLITICO expands in California, we want to more frequently convene our most influential readers in Sacramento and beyond. Swing by and have a cocktail on us—you never know who you might run into! Register here.     TOP TALKERS PANIC IN SILICON VALLEY — One of California’s most coveted ecosystems was just hit by a meteor. With the collapse of Silicon Valley Bank on Friday, dozens of startups were in danger of going extinct, with the potential to wipe out what one expert described as a “generation” of startups in one fell swoop. As POLITICO’s Ben White explains, the implosion of the bank, which was the go-to institution of many fledgling tech and biotech ventures, is in some ways indicative of the wider economy and has top federal officials on high alert. SVB had $209 billion in assets and counted more than half of Silicon Valley-backed startups and health care businesses among its depositors. Over the weekend the Biden administration took aggressive action to backstop all depositors for both SVB and Signature Bank. Newsom praised the move in a statement Sunday, saying the administration’s actions “have calmed nerves and had profoundly positive impacts on California — on our small businesses that can now make payroll, workers who will get their paychecks, on affordable housing projects that can continue construction and on non-profits that can keep their doors open tomorrow.” — “Inside the financial ties between a controversial housing nonprofit and Kevin de León,” by the Los Angeles Times’ Liam Dillon, Benjamin Oreskes and Doug Smith: “The politician’s connections to the foundation have raised uncomfortable questions surrounding De León’s handling of problems at residential hotels the foundation owns in his district.” — Silicon Valley Bank sent money to McCarthy PACs and Siebel Newsom nonprofit, by POLITICO’S Jeremy White: “McCarthy has benefited the most among California elected officials in recent cycles, with the bank’s committee sending over $25,000 to committees tied to the Bakersfield Republican in the last decade.” CALIFORNIA AND THE CAPITOL CORRIDOR — “Newsom seeks to save more floodwater from recent storms,” by the San Francisco Chronicle’s Dustin Gardiner: “Newsom signed an executive order Friday afternoon that makes it easier for water suppliers and farmers to divert flood runoff by temporarily suspending some regulations, including reviews under the California Environmental Quality Act, and allowing users to capture flows without water rights permits.” — “Tom Girardi gave $1M in payments, gifts to top State Bar investigator, corruption probe finds,” by the Los Angeles Times’ Matt Hamilton and Harriet Ryan: “None of the officials alleged to have inappropriate relationships with Girardi still work for the State Bar, according to the agency. Layton was fired in 2015 but later sued the agency for wrongful termination and received a $400,000 settlement. He did not respond to messages seeking comment.” — “Can the United Farm Workers of California rise again?,” by The New York Times’ Kurtis Lee and Liliana Michelena: “The union is a shadow of what it was decades ago. Membership hovers around 5,500 farmworkers, less than 2 percent of the state’s agricultural work force, compared with 60,000 in the 1970s. In the same period, the number of growers covered by U.F.W. contracts has fallen to 22 from about 150.” — How red tape and bureaucracy fuel San Francisco’s housing crisis opines Bilal Mahmood for the San Francisco Chronicle: “The issue is bureaucracy. Namely, the 87 permits San Francisco’s housing element identified that a project needs to apply for in order to begin development: 15 permits from the Planning Commission, 26 permits from the Public Utilities Commission and Fire Department, 19 permits from the Department of Building Inspection, 17 permits from the Public Works and 10 other permits related to public spaces.” — “California offers bipartisan road map for protecting kids online as Big Tech fights back,” by the San Francisco Chronicle’s Mark Kreidler: “One of the industry’s most powerful trade associations, NetChoice, argues, in part, that the law violates free speech provisions of the U.S. Constitution. Members of the association include giants like Google, Meta (which owns Facebook and Instagram), TikTok, and Twitter.” — “52 feet and counting: Lake Tahoe grapples with ‘ginormous’ snowpack,” by The Mercury News’ Jakob Rodgers: “While many homeowners voice deep anxiety about their roofs collapsing underneath the mounds of snow atop them, they also crack smiles while praising one of the best ski seasons in years.” — “As the rains ease in California, many see the damage rise,” by The New York Times’ Viviana Hinojos, Adeel Hassan and Vik Jolly: “But in areas like Springville in the San Joaquin Valley, and in towns on the Central Coast, residents and officials were only beginning to deal with the impact of flooded rivers and creeks, while other parts of the state that saw a respite braced for yet another storm next week.” BIDEN, HARRIS AND THE HILL — Biden expected to OK Alaska oil project — a blow to his green base, by POLITICO’s Ben Lefebvre and Zack Colman: “The White House defended Biden’s environmental record Saturday in comments to POLITICO, saying Biden’s policies have made the U.S. “a magnet for clean energy manufacturing and jobs” with policies that help the U.S. come closer to meeting climate goals.”  TRANSITIONS — Alex Wilcox is joining Rep. Adam Schiff’s Senate campaign this week as research director. She was research director for Tim Ryan’s Senate campaign. BIRTHDAYS Reed DesRosiers … Marcy Stech    DOWNLOAD THE POLITICO MOBILE APP: Stay up to speed with the newly updated POLITICO mobile app, featuring timely political news, insights and analysis from the best journalists in the business. The sleek and navigable design offers a convenient way to access POLITICO's scoops and groundbreaking reporting. Don’t miss out on the app you can rely on for the news you need, reimagined. DOWNLOAD FOR iOS– DOWNLOAD FOR ANDROID.     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 Jesse Shapiro to find out how: jshapiro@politico.com.   Follow us on Twitter Jeremy B. White @JeremyBWhite Lara Korte @lara_korte POLITICO California @politicoca   Subscribe to the POLITICO Playbook family Playbook  |  Playbook PM  |  California Playbook  |  Florida Playbook  |  Illinois Playbook  |  Massachusetts Playbook  |  New Jersey Playbook  |  New York Playbook  |  Ottawa Playbook  |  Brussels Playbook  |  London Playbook View all our political and policy newsletters Follow us

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