THE BUZZ: BOOKED AND BUSY — The budget is near the finish line, but Gov. Gavin Newsom and legislative leaders won’t have much downtime to celebrate. After landing a $297.9 billion spending deal over the weekend, lawmakers are now heading into a hectic week — one that could include a new plan for combating retail theft, a monumental decision on homelessness and the finalized list of measures for the November ballot. Oh, and, at long last, a State of the State address, set to be delivered virtually Tuesday. Here’s what we’re watching in the crucial days ahead: — Budget business: Lawmakers are expected to vote on the budget language in the coming days — freeing up time for leaders to focus on the other big-ticket items. Negotiations ended with a solid showing from Speaker Robert Rivas and Senate President Pro Tem Mike McGuire, who are in their first full session as leaders. They managed to move the governor off some of his proposed cuts and keep funding for their housing, education and social services priorities — all without completely draining state savings funds. They also mustered compromises on two of the most intractable issues: the tax on managed care organizations and a $25 minimum wage for health care workers. Blake Jones offers a full rundown for POLITICO Pro subscribers. — State of the State address: After delaying the speech in March while awaiting the outcome of Proposition 1, Newsom on Tuesday will finally update Californians on the state of their state. Instead of delivering the address in legislative chambers, however, he plans to have a private reception with lawmakers before his pre-recorded remarks air across his social media channels. We’re expecting Newsom to emphasize California’s commitment to strengthening democracy, civil rights and social progress while also highlighting efforts to address crime, mental health and the homelessness crisis. — Prop 47 negotiations: The governor and legislative leaders spent the weekend debating whether to create their own ballot measure to compete with a conservative initiative that aims to increase prison sentences. Newsom had hoped to use pressure tactics to coax district attorneys and retailers to withdraw their November ballot measure, which would roll back parts of Proposition 47 on nonviolent drug and property crimes. But those negotiations have imploded with days left before this Thursday’s deadline to withdraw ballot measures. That’s why Newsom and lawmakers, led by Rivas and McGuire, are seriously discussing the idea of sending an anti-theft proposal to the ballot, according to at least four Capitol insiders, granted anonymity to discuss private conversations. Their measure would likely be focused on reducing retail crime by increasing sentences for serial theft and would not increase sentences for drug offenses. A person familiar with the negotiations said the measure could include a provision to override the conservative initiative — in the event voters approve both measures and the governor’s plan receives more votes. Republicans are already crying foul, calling the plan another gambit to preserve Prop 47 despite public frustration over crime. Democratic lawmakers and staffers are meanwhile hopeful the plan could work, leaning on the notion voters wouldn’t want to swing back to extreme tough-on-crime policies. Newsom’s office hasn’t ruled out the idea of a ballot measure. Spokesperson Izzy Gardon said the governor’s “main focus” is on passing a package of anti-theft bills in the Legislature. — Ballot measure deadline: There’s still a chance for a last-minute deal on other measures before the Thursday deadline, including on initiatives that would require a personal finance course in schools; expand children’s health care; and a referendum on oil wells. Proponents of other measures are facing pressure to just pull them entirely to slim down the ballot, including a proposal for pandemic funding and one to raise the minimum wage. — Grants Pass decision: The U.S. Supreme Court is expected to rule as soon as Wednesday on a case that could dramatically affect how California cities address homelessness — covering a ban on sleeping in public in Grants Pass, Oregon that lower courts have said violates the Constitution’s prohibition on cruel and unusual punishment. The court’s majority of conservative-leaning justices seemed skeptical of those lower court decisions during oral arguments. Newsom, for his part, has submitted a friend-of-the-court brief advocating a middle-of-the-road approach that avoids federal courts effectively managing local matters. — Presidential politics: President Joe Biden and former President Donald Trump face off for the first time this year on Thursday at 6 p.m. PT in CNN’s Atlanta headquarters. While experts are speculating about respective strategies, we expect that Newsom will be called up to fulfill his surrogacy duties for the Democratic president. Newsom appeared in the spin room for the GOP primary debate at the Reagan library in Simi Valley and has gone on the road for Biden. GOOD MORNING. Happy Monday. Thanks for waking up with Playbook. You can text us at 916-562-0685 — save it as “CA Playbook” in your contacts. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte. WHERE’S GAVIN? Nothing official announced.
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