News : A field guide to budget week

Monday, June 12, 2023

A field guide to budget week

Jun 12, 2023

Presented by Advanced Energy United

THE BUZZ: The clock is ticking in Sacramento this week for lawmakers to pass a budget bill by Thursday night. But with negotiations still ongoing with Gov. Gavin Newsom’s office, the final details of a spending plan could take much longer.

New bill language just dropped: The 2023-2024 Budget Act went into print late Sunday night, with few surprises. It’s a restatement of priorities between the Assembly and the Senate, but it will almost certainly change as talks with the Newsom administration continue. That said, it does give us a sense of where Legislative leaders are at in negotiations.

Let’s review the basics: Lawmakers are constitutionally required every year to pass a balanced budget by June 15, or risk losing pay — a rule that was installed by voters in 2010 after a decade’s worth of missed deadlines that caused the state to enter the new fiscal year without a budget in place. Legislators have since managed to meet the deadline and avoid getting their pay docked, but it has taken a bit of creative legislating.

The bill that will pass by Thursday will not be the final word on how California plans to spend hundreds of billions of dollars for the next year. Those decisions are still being worked out between the “Big Three” — Newsom, the Senate and the Assembly — and will come to light via dozens of trailer bills in the weeks to come.

In recent years, there’s been little friction among the three Democratic branches in the budget process, but things are different in 2023 —and not just because it’s normally sweltering in Sacramento by this point. The estimated $31.5 shortfall has forced Newsom to make cuts, and he’s run into opposition from some in his party who say he’s cutting too much.

One key area where legislators are pushing back is in transit funding. The governor has proposed cutting $2.2 billion that could go to regional operators like BART and Metrolink in Los Angeles. That wouldn’t be a big deal if it weren’t for the fact that a drop in ridership is pushing regional transit operators to the edge of a fiscal cliff. Assembly and Senate leaders reiterated their united front last night with a proposal that keeps the funding, which they say was a core part of last year’s agreement to fund high-speed rail.

Lawmakers have a 72-hour holding period before they can hold floor votes on the bill, but we’ll see movement from the budget committees starting Wednesday morning.

BUENOS DÍAS, good Monday morning. Newsom has more on his mind this week than just the budget. His full interview with FOX’s Sean Hannity is set to air tonight at 6 p.m. PT. We did get a short preview over the weekend. More on that below.

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.

A message from Advanced Energy United:

The climate crisis demands action, but we aren’t moving fast enough. It’s time for California to get to work and build our clean energy future, faster. California needs to expand clean energy at a record-breaking pace over the next couple decades, including upgrading and building the transmission lines necessary to electrify buildings and vehicles while delivering reliable and affordable energy. Learn more here.

WHERE’S GAVIN? Nothing official announced.

QUOTE OF THE DAY: “I’ve talked to him when he’s been overseas. I’ve been in Air Force One, Marine One. I’ve been in the limo with him. I’ve spent time with him.” Newsom on whether Joe Biden is cognitively able to carry out the duties of the presidency, in a preview of his Hannity interview.

WE’RE HIRING — POLITICO is embarking on an exciting expansion in the Golden State and looking for another journalist to join our growing team as a California Playbook author. More in the job description here.

PLAYBOOK TRIVIA NIGHT! Think you know a lot about politics? PROVE IT! Compete in California Playbook’s inaugural Trivia Night. Grab a drink, kick back, and put your knowledge on display! Join top political power players on Wednesday, June 21st at Fox & Goose Public House for a night of fun and competition that you won’t want to miss. REGISTER HERE.

Top Talkers

— “Migrants say Florida contractors pushed to get them to board planes to California,” by the Los Angeles Times’ Jack Herrera: “The contractor, along with another woman and two men, spent the afternoon walking around the church trying to recruit migrants like María to board a charter flight to California. María and other migrants said the contractors did not identify themselves beyond saying they were there to ‘help the migrants.’”

PETE AGUILAR ASCENDS — This Californian Democrat Might Be the Future of the Party, by POLITICO’s Jonathan Martin: And as his party attempts to reclaim the majority next year, he’s embracing a new role: mentor, guide and, he hopes, eventually leader for the next generation of California Democrats emerging and arriving in Washington.

CAMPAIGN MODE

CALIFORNIA TOUR— First lady Jill Biden is holding a special event with Lt. Gov. Eleni Kounalakis in support of the Biden Victory Fund this Tuesday, June 13, in San Francisco.

MAYORAL PURSUIT — Former state Sen. Richard Pan will launch a bid for Sacramento mayor, he told political strategist Bill Wong in his Ronin Project podcast on Sunday. Pan left the upper chamber last year after nearly a decade-long tenure marked by fierce battles over vaccines. He enters a growing field looking to succeed Sacramento Mayor Darrell Steinberg, who announced earlier this month he won't seek a third term in 2024. Among Pan's competitors are fellow Sactown legislator Assemblymember Kevin McCarty and former City Councilmember Steve Hansen.

— Kamala Harris gets campaign cavalry: Top group plans to spend $10 million-plus to boost her, by POLITICO’s Eugene Daniels: EMILY’s List, the political action committee whose aim is to elect female candidates supportive of abortion rights, says it will be spending “tens of millions of dollars” to defend and prop up the vice president during the 2024 election.

SOCAL IN THE HOUSE — “Democrats' plan to take control of Congress could depend on Southern California,” by the Los Angeles Times’ Seema Mehta: “Of the 435 seats in the House, Democrats need to capture five held by Republicans next year to take back control of Congress. And they view many of their best opportunities in California.”

A message from Advanced Energy United:

CALIFORNIA AND THE CAPITOL CORRIDOR

— John Eastman devised a fringe legal theory to try to keep Trump in power. Now he may be disbarred, by POLITICO’s Kyle Cheney: The attorney is fighting to save his California bar license from authorities who say he repeatedly breached professional ethics — and possibly the law — in his bid to keep a defeated Trump in power.

— “One Metro worker revived 21 riders overdosing on opioids. He's not alone,” by the Los Angles Times’ Rachel Uranga: “Metro policy prohibits workers from freely speaking with media or photographing conditions inside the trains. But half a dozen current and former workers, who include cleaning staff and security guards, spoke to The Times about the deaths and near deaths caused by drug use on the trains.”

— “Exclusive: Bob Lee murder suspect Nima Momeni allegedly stabbed 2 teenagers years ago,” by the San Francisco Chronicle’s Matthias Gafni: “In 2005, Momeni, then 20 years old, stabbed a 19-year-old man and 16-year-old boy during what Albany police called a possible “dispute over drugs,” according to a police report obtained by The Chronicle this week through a public records request. One witness told police the younger boy had first attacked Momeni. Both teenagers survived with what police described as minor wounds.”

— “L.A. Times Executive Editor Kevin Merida is grilled by staff over 73 layoffs,” by the Los Angeles Times’ Meg James: “The organization is cutting photojournalists, longtime copy editors, news desk editors who help oversee the paper’s digital report and audience engagement editors. Audio producers were let go, as were a library researcher and several respected managers, including two stalwarts in the Spanish-language Times en Español digital news operation.”

GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGISTER HERE.

BIDEN, HARRIS AND THE HILL

— “Partisan mistrust still festers in Washington after Sen. Dianne Feinstein's absence,” by the Los Angeles Times’ Benjamin Oreskes: “Democrats remain skeptical about assurances from Republicans that, should Feinstein, 89, leave office before her term ends in early 2025, there would be no political gamesmanship when replacing her on the powerful Senate Judiciary Committee, the narrowly divided panel that votes on Biden’s nominations to the federal judiciary.”

MIXTAPE

— “Oakland teens witness more violence, feel sadder than U.S. counterparts,” by the San Francisco Chronicle’s Raheem Hosseini.

— “California ranchers intentionally violated an emergency water order. Now lawmakers want to triple the fines,” by CalMatters’ Rachel Becker.

— “L.A. Country Club is part mystery, part myth that the U.S. Open will reveal,” by the Los Angeles Times' Sam Farmer.

BIRTHDAYS

WAS SUNDAY: Cisco’s Michael Timmeny … Juliette Medina … Shia LaBeouf

WAS SATURDAY: Meta’s Meredith Carden … Tyler Gregory … Mayer Marx

A message from Advanced Energy United:

California can keep our grid affordable and achieve our climate ambitions. To do so, we must get to work removing roadblocks to new in-state clean energy infrastructure and speed up our interconnection process. Building our clean energy future faster will pave the way for substantial new jobs and private investment while also maximizing California’s ability to put federal funding to work. California’s leadership in the West is critical as we pave the way to a 100% clean energy system, strengthen our electric grid and prepare for the future. Learn more here.

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