FIRE UPDATES: President Joe Biden said he would “pray to God” that his successor doesn’t block funds to help California recover from fires that have killed at least 10 people and destroyed more than 10,000 homes and businesses. — President-elect Donald Trump is demanding Gov. Gavin Newsom “open up the water main” and allow “beautiful, clean, freshwater to FLOW INTO CALIFORNIA!” What does that even mean? — Vice President Kamala Harris canceled her overseas trip to Singapore, Bahrain and Germany to remain in the U.S. and assist in the federal response to the fires in her home state. — Another fire broke out at the border of Los Angeles and Ventura counties, burning close to homes in the hills outside Calabasas. — Los Angeles County Sheriff Robert Luna hoped to have a curfew in place from 6 p.m. to 6 a.m. in areas burned by the Palisades and Eaton fires by Thursday night, but said it would definitely be in effect Friday evening. — LAPD said it arrested a person after receiving a radio call in which a man was heard accusing the suspect of "trying to light a fire." Though an LAPD officer told NewsNation the Kenneth Fire is being investigated as an arson, the department's communications department said it could not confirm the suspect had any connection to any fire. — The Hollywood Sign did not catch fire, but fake, AI-generated images of the sign proliferated online. — The number of faults on the power grid near three of the major Los Angeles County fires skyrocketed in the hours before the blazes began. — Monday’s NFL playoff game between the LA Rams and Minnesota Vikings was moved to Arizona as NFL officials cited wildfire concerns. — And looters were arrested across Los Angeles as officials extended stark warnings. THE BUZZ: REMOTE BUDGETING — Newsom will, in a break from tradition, release his initial budget proposal today while he’s hundreds of miles from the Capitol overseeing the fire response in Los Angeles. He did what we're charitably calling a preview on Monday; when the original plans called for him to be away in Washington. Department of Finance Director Joe Stephenshaw will get into the weeds in his absence at a 10 a.m. press conference that will be livestreamed on the governor’s YouTube page. The precisely 140-page proposal will be posted online here the second he opens his mouth, drawing lobbyists’ and legislators’ eyes away and onto the top-line summary known as the A pages. We know that Chief Deputy Director Erika Li and program budget managers will be in the house. The budget will be $322 billion, including $25 million for federal litigation; more than $400 million more for film tax credits and $100 million for an education master plan. And the presentation will emphasize the money the state is already spending on fire fighting and mitigation, according to Finance spokesperson H.D. Palmer. But there’s a lot more we don’t know. For instance:
- How big (or small) is the administration’s estimate of the surplus? Newsom said on Monday it would be “modest,” but Finance hasn’t yet publicized a calculation of the number. (The nonpartisan Legislative Analyst’s Office previously pegged the deficit at $2 billion.)
- What is he going to do about Proposition 35? The health spending initiative that passed in November upended parts of the health budget, requiring the state to redirect proceeds from a managed care organization tax that had been earmarked for other some of the governor’s priorities.
- Or Proposition 36? Increased criminal penalties from that measure are expected to put a strain on the state’s prison budget. We have our eyes on Department of Corrections spending, and any assessment of whether more prisons (or even parts of them) need to stay open.
- How will he approach pandemic prevention? Newsom at first sought to cut Covid-era funding for this cause last year to deal with the state deficit but backed off in the face of legislative resistance. Now, these appropriations have taken on new significance as the avian flu spreads.
- What are his plans for the cap-and-trade fund? One of the largest legislative fights of the year is expected to hinge on how and whether to renew the state’s carbon auctions. Newsom and lawmakers last year shifted where and proceeds from the auctions will be spent, and this year could bring more changes as officials haggle over the system.
— With help from Rachel Bluth GOOD MORNING. Happy Friday. 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 dgardiner@politico.com and bjones@politico.com, or on X — @DustinGardiner and @jonesblakej. WHERE’S GAVIN? In Los Angeles, working with local, state and federal fire officials responding to multiple fires.
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