Tuesday, December 12, 2023

A chaotic capper to McCarthy’s 2023

Inside the Golden State political arena
Dec 12, 2023 View in browser
 
POLITICO California Playbook

By Melanie Mason, Lara Korte and Dustin Gardiner

Kevin McCarthy, R-Calif., talks to reporters in late September.

Then-House Speaker Kevin McCarthy, R-Calif., talks to reporters in late September, shortly before his colleagues removed him from leadership. | J. Scott Applewhite/AP

THE BUZZ: GONE SIDEWAYS — The race to replace Kevin McCarthy in the House is shaping up to be a chaotic mess — a microcosm of the former speaker’s year of mayhem.

After a protracted fight for the gavel, a historic ouster from leadership and an abrupt resignation, it looked as though McCarthy would at least have the consolation prize of a smooth succession plan.

But now, McCarthy has one well-positioned ally staying on the sidelines and another whose candidacy is in jeopardy because of the state’s arcane election rules.

Soon after McCarthy announced his plans to step down, his onetime district director, Assemblymember Vince Fong, opted not to run for the seat. Other state and local politicians similarly declined, effectively clearing the field for state Sen. Shannon Grove, who started her political career on McCarthy’s urging.

Grove, though, stunned Central Valley political circles late Sunday by announcing that, “after prayerful consideration and thoughtful discussions” with family, she would not run after all. Fong followed up with his own change of heart and launched a congressional bid a day later.

Fong’s first endorsement is from McCarthy, natch.

“Throughout his career, Vince has fought tirelessly to improve the quality of life in the Central Valley,” McCarthy said in a statement released by Fong's campaign Tuesday morning. “There is no one that I trust more to continue the fight for common-sense and conservative values in Washington DC. I am proud to endorse my friend Vince Fong for Congress.”

An orderly torch-passing is easier said than done. Fong had already declared he was running for reelection for Assembly, and California law does not allow candidates to appear on the same ballot twice for different jobs. It also prohibits contenders from dropping out of a race after the filing deadline closes, which for incumbents like Fong was last Friday.

The California Secretary of State was unequivocal, telling POLITICO Monday evening that “no withdrawal is allowed, and a person cannot run for more than one office in the same election.”

Still, Fong spent the day proceeding like any other congressional candidate. He submitted his paperwork on Monday, which, per his social media, was accepted by Kern County. But this foray into uncharted territory will almost certainly invite a legal challenge from a rival.

“The last 24 hours have been a political dust storm in the Central Valley. At the moment, Assemblyman Fong is the strongest candidate to replace former Speaker McCarthy,” said Tal Eslick, a longtime Central Valley political strategist. “But this legal hurdle could open the door to second tier candidates or even a credible self-funder.”

McCarthy knows more than anyone the benefit of a smooth transition plan. His own congressional career began as the heir apparent to Rep. Bill Thomas, the Bakersfield GOP icon.

Now, the race for McCarthy’s seat could end up as a referendum on his continuing influence in the district. Fong has been in close contact with the former speaker’s operation and could surely tap into his former boss’s donor network and longtime political connections. But a challenger could make the case that it’s time for a break from the McCarthy machine.

One potential contender, Tulare County Sheriff Mike Boudreaux, said that his independence would be part of his pitch to voters.

“I like Kevin, I like Vince, I like both of them. But if I do get out there, it’s going to be a platform on my own,” Boudreaux said.

Boudreaux, who made headlines for refusing to enforce Gov. Gavin Newsom’s indoor mask mandate during the pandemic, pulled papers to collect signatures to qualify for the race. He has until Wednesday afternoon to turn them in. He said his one hesitation is what the cross-country gig would mean for his high-school aged children.

As for his potential competition, Boudreaux acknowledged Fong benefits from the McCarthy lineage. But, he added, “at the end of the day, the voters are going to have to decide – do we want what we had or do we want something new?”

— Jeremy B. White contributed reporting

GOOD MORNING. Happy Tuesday. Thanks for waking up with Playbook.

PLAYBOOK TIP LINE — What are you watching for in the Senate leadership change? Hear any rumblings about committee chairs? Give us a ring or drop us a line.

Now you can text us at ‪916-562-0685‬‪ — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on Twitter —@DustinGardiner and @Lara_Korte

WHERE’S GAVIN? Nothing official announced. In New York City later this week to film an appearance on “Late Night With Seth Meyers.”

TRIVIA TONIGHT: We’re hosting a holiday-themed trivia night in Sacramento! Join POLITICO’s California team for an evening of political wonkery and libations at the Fox & Goose Public House on R Street. The games start at 6 p.m. — don't forget to wear your most festive and/or hideous holiday outfit!

And check back tomorrow for a list of winners!

FRESH INK

Konstantine Anthony, the progressive mayor of Burbank, Calif.

Burbank Mayor Konstantine Anthony.

RESCINDED — Burbank Mayor Konstantine Anthony made an about-face Monday, backing Bay Area Rep. Barbara Lee for U.S. Senate and pulling back his support for hometown Rep. Adam Schiff over his position on the war in Gaza.

"It was very difficult for me to change my position, to rescind my endorsement,” Anthony said at a press conference. “But I have watched moral clarity shine through in another candidate.”

Lee has lagged behind her Democratic rivals in polls. Her support for an immediate cease-fire may help her distinguish herself. Schiff and Rep. Katie Porter have aligned themselves with the Biden administration’s position, which is broadly supportive of Israel and its right to respond to the Oct. 7 attack while urging the Israeli government to show restraint.

"It takes courage to endorse the opponent of your hometown representative," Lee told Anthony. "And I just want to thank you for your courage and leadership."

A spokesperson for Schiff’s campaign, in a statement, said “Adam is proud to have the endorsement of nearly 65 percent of California’s Democratic congressional delegation, over 275 current and former California elected officials, and nearly a dozen statewide labor unions.”

“Adam supports Israel’s right to defend itself and supports humanitarian pauses to encourage the release of hostages and allow critical aid to reach civilians in Gaza,” the statement read.

AD-36 UPDATE — Coachella Valley Unified School District member Joey Acuña is running for the 36th Assembly District seat that Assemblymember Eduardo Garcia is giving up in a last-minute reelection pass. Acuña, a Democrat, is taking another crack at the Legislature after losing consecutive Assembly races in 1998, 2000, and 2002 — the last by a few thousand votes.

RISING STAR – Most politicians use the internet to talk about themselves. State Sen. Susan Eggman is using it to talk about bread.

While other Stockton Democrats jockey for her soon-to-be vacant Senate seat, we’ve been delighted to see Eggman, who terms out at the end of next year, popping up on our TikTok feeds sharing recipes and techniques with a community of “sourdough friends.” She’s made kalamata olive bread, jalepeño cheddar, and a honey and rye variation.

Does this mean she’s preparing to launch a second career as a baking influencer? Let us know, senator, we knead to know.

WEINSTEIN WATCH — Organizers of the ballot measure targeting AIDS Healthcare Foundation President Michael Weinstein told Playbook they’ve collected more than 25 percent of the signatures needed to put it on the November 2024 ballot for voters — a milestone that suggests a serious effort.

A ballot initiative in circulation would effectively bar Weinstein from using the foundation’s money to advance his political causes through ballot measures. He has used funds from the organization, which operates a network of pharmacies and clinics around the world, to pour more than $100 million into ballot fights. Weinstein’s organization has long argued that its financial dealings are appropriate, and that the foundation is allowed to spend a certain percentage of its funds on political activity.

The organization driving the initiative, the California Apartment Association, has clashed with Weinstein over rent control and other housing-related measures; the ballot play is part of a colorful effort to undermine him. At last month’s California Democratic Party convention, supporters of the initiative hired actors wearing cockroach costumes to roam the event hall, suggesting Weinstein’s nonprofit operates affordable housing projects as “slums.”

PHILADELPHIA, PENNSYLVANIA - AUGUST 29: Shohei Ohtani #17 of the Los Angeles Angels looks on before playing against the Philadelphia Phillies at Citizens Bank Park on August 29, 2023 in Philadelphia, Pennsylvania. (Photo by Tim Nwachukwu/Getty Images)

Shohei Ohtani. | Getty Images

INSIDE BASEBALL: Two-way superstar Shohei Ohtani signed a ten-year, $700 million deal with the Los Angeles Dodgers over the weekend. But don’t expect the taxes from Major League Baseball’s biggest contract to save California from a record budget deficit. (We’re looking at you, bored social media speculators).

POLITICO guesstimated Ohtani’s tax burden by using an online calculator and then tacking on a millionaire’s tax. The result? Even if Ohtani was making $70 million annually, he would have shelled out a mere $8.6 million to the state each year while occupying California’s top income tax bracket. Ohtani deferred all but $2 million a year of his earnings until 2034, according to The Athletic, so he’ll only be paying $248,000 annually to the state (excluding his millions in off-the-field deals) until then.

The Department of Finance could not confirm the accuracy of POLITICO’s back-of-the napkin math — it has a firm rule against estimating individuals’ tax liability — but acknowledged even the best player in baseball can’t make a dent in a $68 billion shortfall.

“Without question, Mr. Ohtani already has and will no doubt continue to put up otherworldly numbers on the field,” Department spokesperson H.D. Palmer said. “However, it’s fair to say it will take more than his remarkable success alone to close next year’s budget gap.” — Blake Jones

WHAT WE'RE READING TODAY

CRASH CONTROL: Tesla warns drivers that its Autopilot feature is only designed to be used on highways without cross traffic. The company has the capability to limit where the driver-assistance technology is used. It doesn’t, and there have been at least eight fatal accidents. (The Washington Post)

RISING RENTS: Rents for tenants in privately-owned, low-income housing are skyrocketing, with some seeing a 25 percent increase in just 13 months. Private affordable housing was excluded from a 2019 bill that caps annual rent hikes at 10 percent. (CalMatters)

PLAYBOOKERS

FIRST IN PLAYBOOK: THIRD HOUSE PROMOTION — Former Assemblymember Autumn Burke has been promoted to a partner with Axiom Advisors, the Sacramento public affairs and lobbying powerhouse. Burke, who resigned from the Assembly in early 2022, is the firm’s first new partner since it was founded about five years ago.

BIRTHDAYS — Google’s José Castañeda and Nick Pearson Kartik Das (was Monday): Hailee Steinfeld Gideon Resnick Kara Swisher Marianne LeVine Megan Capiak Josh Morton(was Sunday): Rep. Mark Takano (D-Calif.) … former Rep. Harley Rouda (D-Calif.) … Kip Wainscott Nicole Perlman ... David A. Ulevitch ... Emmanuelle Chriqui Steve Johnston

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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