Friday, June 9, 2023

The budget whisperer

Presented by Environment California: Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State
Jun 09, 2023 View in browser
 
POLITICO California Playbook

By Lara Korte and Jeremy B. White

Presented by Environment California

THE BUZZ: California counties want the state to give them more money for homelessness, and they’re hoping a longtime insider can help make it happen.

California counties this year have enlisted a state government veteran in their effort to craft their homelessness policy for the budget. Keely Bosler spent decades in Sacramento as a key architect of the state budget, first on the Senate side and then in the horseshoe, working for then-Gov. Jerry Brown in various capacities, including as Cabinet secretary. Most recently, she served as Newsom’s director at the Department of Finance before leaving government last year for the private sector.

Now, Bosler is working with the California State Association of Counties as a paid consultant to help develop a vision for a statewide response to homelessness and draft trailer bill language to make it a reality.

“It’s a tremendous coup for them,” said Chris Micheli, a longtime California lobbyist who often worked with Bosler during her many years crafting the budget. “She really knows the key details of not only the budget itself, but also how to put together sometimes disparate viewpoints and put folks together.”

With public frustration over homelessness running high, California counties are pressing the Legislature and Gov. Gavin Newsom to provide an ongoing source of funding for a grant program that, up to this point, has only doled out funds on a one-time basis.

It’s a big ask in a deficit year — and disagreements between counties and cities over accountability measures have the potential to rust the tracks. But, with the help of the veteran budget expert, counties are hoping to finally land a policy win they’ve been eyeing for years.

Bosler, who is known around the Capitol as a no-nonsense budget savant, is operating largely behind the scenes. CSAC Executive Director Graham Knaus said her presence underscores that the organization is doing "everything possible to meet this homelessness crisis." Despite the state spending more than $15 billion in recent years, encampments are still prevalent in California cities, angry citizens are still flooding local government meetings, and officials from every level of government are feeling the pressure to do something.

That can’t happen without ongoing state funding. At least, that’s how counties and cities see it. CSAC hasn’t landed on a specific figure yet, but the League of California Cities is asking for $3 billion annually, with support from more than two dozen lawmakers. The real dispute boils down to accountability. CSAC says the state can’t make progress without defined responsibilities for local governments, but cities are wary about some of the proposed details and don’t want mandates without adequate funding.

Budget negotiations are shrouded in secrecy, and there’s no telling if the Newsom administration is on-board with the counties’ plan. But Bosler’s involvement could bring some significant heft to the counties’ cause.

“She’s a very serious person who people take seriously,” said Ann O’Leary, Newsom’s former chief of staff. “I think the fact that [counties] are investing in Keely is an extremely smart move on their part.”

BUENOS DÍAS, good Friday morning. Only three more days until the budget bill must be in print.

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 Environment California:

It’s time to make oil and gas companies – not California taxpayers – pay for the pollution they cause. California still gives subsidies and tax breaks to big polluters. Oil companies are making record profits, but refusing to clean up their messes. Meanwhile, California proposed cutting $6 billion from the historic climate budget. Instead, California must end subsidies and tax breaks for oil and gas companies, and redirect funding to renewable energy infrastructure and a clean environment.

 

WHERE’S GAVIN? Nothing official announced.

QUOTE OF THE DAY: “If Newsom is this disinterested in leading California, he should let the lieutenant governor take over so he’ll be free to chase the national spotlight full-time.” Assembly Republican Leader James Gallagher’s take on a 28th Amendment.

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

PRIME TIME — Keeping with his theme of entering enemy territory, Newsom is sitting down with Fox News’ Sean Hannity in an interview set to air Monday. The interview, which will take place in Sacramento, will touch on immigration, the economy, the 2024 election and Newsom's new proposed 28th Amendment. It marks Newsom's first interview with the network in over a decade.

— “As Assembly Speaker Anthony Rendon's power grew, so did his wife's income,” by the Los Angeles Times’ Hannah Wiley and Katie Licari: “As Rendon’s influence grew, financial and lobbying disclosures show that Lam’s consultancy business similarly boomed. Over the years Rendon served as speaker, Lam has founded a nonprofit, taken on several new clients and became the executive director of six total organizations, work that allowed her income to swell and public profile to soar.”

 

A message from Environment California:

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CALIFORNIA AND THE CAPITOL CORRIDOR

MOVIN’ ON — A half dozen staffers to Assembly Speaker Anthony Rendon are being dismissed from the speaker’s office, POLITICO has learned, as we get closer to a planned end-of-June transition from Rendon to Assemblymember Robert Rivas. It’s a harbinger of more change to come as Rivas likely brings on senior staffers and, at some point, doles out choice committee chairmanships.

— “Mayor Karen Bass tests positive for COVID-19, feels 'fine',” by the Los Angeles Times’ Julia Wick: “Bass had previously been set to attend a number of events Thursday, including a press lunch for the city’s annual Lotus Festival and a scholarship dinner for LiUNA Local 300, a union representing construction laborers, maintenance workers and plant workers.”

— “Did Newsom backtrack on a transit funding deal? Some Democrats fume as systems face 'death spiral',” by the San Francisco Chronicle’s Dustin Gardiner: “The tension has added another layer to intense budget negotiations over transit funding this year. For months, transit advocates and local elected leaders, including Mayor London Breed, have pleaded with Newsom to restore the funding and provide a larger bailout to help struggling rail and bus systems, especially BART and Muni, which face a looming ‘fiscal cliff’ and could be forced to reduce service due to a post-pandemic slump in ridership.”

— “A small world: How caste discrimination came to California,” by CalMatters’ Sameea Kamal and Jeanne Kuang: “While many Californians may never know anyone who experiences caste discrimination, or even what it is, for some, it’s both hidden and inescapable.”

DOOM SCHMOOM — “Charts show S.F.'s job market is strong despite ‘doom loop’ fears,” by the San Francisco Chronicle’s Adriana Rezal and Dan Kopf: “Over 140,000 jobs have been cut by U.S.-based tech companies so far in 2023, according to data from the business information company Crunchbase. But recent data suggest that even San Francisco’s job market is in a much better shape than those concerned about a “doom loop” in the city might think.”

 

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.

 
 
MIXTAPE

— Column: "The next Pelosi: Pete Aguilar is the future dean of California Democrats," by POLITICO's Jonathan Martin.

— “Homelessness in San Diego County rose 22 percent last year. More of them are women, seniors and veterans,” by The San Diego Union-Tribune’s Gary Warth.

— “Is California facing a home insurance crisis like hurricane-ravaged Florida?,” by The Mercury News’ John Woolfolk.

— “Cows help reduce wildfire risk, restore native habitats in eastern Orange County,” by The Orange County Register’s Brooke Staggs. 

Transitions

— Adam Taylor has been promoted to legislative director for Rep. Scott Peters (D-Calif.). He was his military legislative assistant.

Sheenika Gandhi has been promoted to chief marketing officer at Greenberg Glusker in Los Angeles.

 

A message from Environment California:

California is struggling to balance its budget and proposing to cut $6 billion from the climate budget. Over 50 groups are urging Governor Newsom and the California Legislation to end subsidies for oil and gas instead. It’s time to make oil and gas companies – not California taxpayers – pay for the pollution they cause. While oil companies are making record profits, they continue to pollute our environment, but refuse to clean up their messes. We can’t keep paying companies to game the system while they dump higher bills and pollution on Californians. Instead, California leadership must end subsidies and tax breaks for oil and gas companies, and redirect funding to the climate budget. California should take that money and redirect it toward building new renewable energy infrastructure and dealing with the antiquated, fossil fuel-based systems left behind, as well as the polluters’ unwillingness to clean up their own messes. Learn more.

 

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

 

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Jeremy B. White @JeremyBWhite

Lara Korte @lara_korte

POLITICO California @politicoca

 

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