The quiet maneuvering of Karen Bass

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

Mar 28, 2023 View in browser   By Alexander Nieves, Lara Korte, Jeremy B. White, Matthew Brown and Ramon Castanos THE BUZZ: Last week’s disruptive school strike in Los Angeles captured national attention and sent California politicians scrambling to get their opinions on the record. Noticeably missing from the media scrum, however, was the region’s most influential local official: Mayor Karen Bass. The newly elected mayor chose to keep a lower profile. At least at first. The longtime congresswoman and state lawmaker has played a major role in negotiating contentious political fights in the past, most notably navigating a state budget deal with Republicans in 2009, closing a $26 billion budget gap. Over a decades-long career in which she’s consistently climbed the leadership ranks — and come close to becoming a potential vice president — Bass has garnered a reputation as someone more comfortable hammering out a backroom deal than hitting the TV circuit. In an interview Friday with POLITICO, Bass revealed she held a previously undisclosed meeting with both sides a week before the strike. But she said she had no intention of inserting herself into the public discourse. That stands in stark contrast to her predecessor, Eric Garcetti, who made it known early that he wanted to play a role in the 2019 teacher strike. And unlike the trio of California Democrats running for Senate – Adam Schiff, Barbara Lee and Katie Porter — who all voiced support for the SEIU — Bass resisted the urge to take sides on Twitter. “When you're not in the middle of the fray, you can take a step back and look at it more objectively,” Bass told Politico, “and then argue why the two sides need to come together.” SIGN HERE, MR. GOVERNOR — After months of quiet, backroom negotiations, Gov. Gavin Newsom finally has a bill on his desk to hold Big Oil accountable. Just a week passed between the time Newsom declared a deal with legislative leaders and Monday’s Assembly vote. The rapid succession of hearings left some lawmakers, including Democrats, feeling rushed and uncertain, but not wary enough to vote it down. This is not the bill that Newsom had in mind five months ago when he suggested the Legislature pass a tax on windfall oil profits and give the revenue back to consumers in the form of rebates. Even the subtle pivot from tax to penalty in December didn’t immediately earn Newsom a ton of support. Lawmakers indicated they couldn’t justify such a measure without clear evidence of collusion — especially if there was a risk it would lead to higher gas prices. The final version of the bill tosses the ball over to the California Energy Commission, which will be tasked with implementing a penalty only if it determines the benefits outweigh the risks. Any funds collected from corporations would then be distributed at the discretion of the Legislature. It also creates an oversight body within the CEC to monitor market conditions for any anti-competitive practices or abuses. Newsom is expected to sign the bill today. BUENOS DÍAS, good Tuesday morning. Should California ban homeless encampments near schools, daycares, parks and libraries? Senate Republicans, led by Sen. Brian Jones, will gather this morning to promote Senate Bill 31, which would prohibit encampments near these “sensitive areas” ahead of a hearing in the Public Safety committee later this morning. Attendees include former San Diego Mayor Kevin Faulconer.  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.  WHERE’S GAVIN? Nothing official announced. QUOTE OF THE DAY: “I reached out and said, ‘Hey, I want to sample your beetles.’” UC Berkeley entomologist Kipling Will on discovering a new beetle species on Jerry Brown’s Colusa ranch and naming it after the former governor.   TWEET OF THE DAY: danawill2023   JOIN POLITICO ON 4/5 FOR THE 2023 RECAST POWER LIST: America’s demographics and power dynamics are changing — and POLITICO is recasting how it covers the intersection of race, identity, politics and policy. Join us for a conversation on the themes of the 2023 Recast Power List that will examine America’s decision-making tables, who gets to sit at them, and the challenges that still need to be addressed. REGISTER HERE.     TOP TALKERS — “What was the San Francisco Fed's role in SVB collapse?” by the San Francisco Chronicle’s Kathleen Pender: “SVB’s regulators for safety and soundness were the Federal Reserve, primarily the San Francisco Fed, and the California Department of Financial Protection and Innovation, known as DFPI. Although hindsight is 20-20, there were some big red flags waving at SVB.” CALIFORNIA AND THE CAPITOL CORRIDOR NOT-SO-MAGIC KINGDOM — “Disney to start laying off 7,000 employees this week,” by The Wall Street Journal’s Denny Jacob: “A second, larger round of notices with several thousand more staff reductions will take place in April. Disney expects to commence the final round before the summer starts to reach its target of 7,000 job cuts, which were first announced in February.” — “With thefts still high, California Prius drivers wait months for new catalytic converters,” by the Los Angeles Times’ Laura J. Nelson: “For several years, older Priuses have held the dubious distinction of being the No. 1 target of catalytic converter theft in California. Drivers whose converters have been swiped are now experiencing a second indignity: Thousands of Prius owners are ahead of them in line for the same part, and the delays could stretch on for months.” MASK OR MAKEOVER? — “A California program to fix mobile home parks approved 1 application in 10 years. Will a rebrand work?” by CalMatters’ Manuela Tobias: “State administrators approved a single loan application, in 2021, from a fund now worth $33.5 million, the state’s Housing and Community Development Department confirmed to CalMatters. The loan went to a non-profit organization to rehabilitate a run-down park in the Eastern Coachella Valley, a region notorious for its dilapidated mobile home parks.” — “California State Farm car insurance customers to see a $264-million rate increase,” by the Los Angeles Times’ Ronald D. White: “State Farm insures more California drivers than any other company operating in the state. Those 3.7 million California drivers will see an average annual boost of $71 per policy, an increase of 6.9 percent, said Consumer Watchdog, a Santa Monica-based advocacy group.” — “Court tosses out woman's manslaughter conviction, says state prosecutors withheld evidence,” by the San Francisco Chronicle’s Bob Egelko: “In a unanimous ruling, the court said prosecutors and the state attorney general have “a constitutional and an ethical duty” to turn over any evidence that could raise doubt about a defendant’s guilt at any stage of the legal proceedings. It was the second opinion issued by Chief Justice Patricia Guerrero since Gov. Gavin Newsom appointed her to lead the court in January.” WORK-LIFE IMBALANCE — “Work from home has downtowns empty. A solution? Live in a former office,” by The Washington Post’s Linda Chong and Erica Werner: “Turning an office building into apartments can be costlier and more difficult than standing up a whole new residential building from scratch, according to architects and developers. Of dozens of empty or underutilized office buildings out there — and in San Francisco there are plenty — only a fraction are actually feasible candidates for conversion to living space.” — “Q&A: California passes Gavin Newsom's plan to penalize oil companies. What it means for drivers,” by The Sacramento Bee’s Maggie Angst and Lindsey Holden: “The new language pushes more responsibility to the Energy Commission, which will compel oil companies to provide information and potentially set a profits cap and consequences for exceeding the limit. This setup is more palatable for lawmakers because it doesn’t guarantee a penalty but promises more transparency about the oil industry.” — “A Sacramento housing nonprofit is closing. More than 560 Sacramentans could be homeless,” by The Sacramento Bee’s Theresa Clift: “Sacramento Self-Help Housing’s board of directors last week voted to close the organization, in part triggered by the county’s decision not to renew over $5 million in contracts to house the homeless, Board Chairman Ethan Evans said.” BIDEN, HARRIS AND THE HILL — Biden finds his limits on Israel, by POLITICO’s Nahal Toosi: “Throughout the crisis, whose roots stretch back months, President Joe Biden and his aides tried to strike a balance with Israel: Keeping appeals and criticisms largely private, but going public on occasion with carefully worded statements designed to pressure Netanyahu to back off the overhaul plan. But those U.S. appeals didn’t seem to do the trick.”   GO INSIDE THE 2023 MILKEN INSTITUTE GLOBAL CONFERENCE: POLITICO is proud to partner with the Milken Institute to produce a special edition "Global Insider" newsletter featuring exclusive coverage, insider nuggets and unparalleled insights from the 2023 Global Conference, which will convene leaders in health, finance, politics, philanthropy and entertainment from April 30-May 3. This year’s theme, Advancing a Thriving World, will challenge and inspire attendees to lean into building an optimistic coalition capable of tackling the issues and inequities we collectively face. Don’t miss a thing — subscribe today for a front row seat.     SILICON VALLEYLAND DAMAGE CONTROL — “Twitter takes legal action after source code leaked online,” by The Guardian’s Dan Milmo: “According to a court filing made on Friday, Twitter is demanding that GitHub, a code-sharing service, identifies who released on the platform parts of its source code – the underlying software on which the service operates.” MEDIA MATTERS JOURNALISM DROUGHT — “The California newspaper that has no reporters left,” by the Los Angeles Times’ James Rainey: “The Salinas Californian missed those stories, understandably, because it employed only one journalist until December. That’s when the paper’s last reporter quit to take a job in TV. The departure marked the latest and perhaps final step in a slow-motion unwinding of what used to be the principal local news source in this city of 163,000.” MIXTAPE — “These 33 important buildings owned by L.A. County could be at risk in a major quake,” by the Los Angeles Times’ Rebecca Ellis and Rong-Gong Lin II. — “Major S.F. Chinatown restaurant locked in legal battle with landlord,” by the San Francisco Chronicle's Elena Kadvany. — “55-car train carrying no passengers derails in California,” by SFGATE’s Amy Graff. BIRTHDAYS Will Goodman… Ashley Duffey 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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