Jeremy B. White and Lara Korte’s must-read briefing on politics and government in the Golden State

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By LARA KORTE, JEREMY B. WHITE and SAKURA CANNESTRA 

Presented by the California Clean Cars Campaign

THE BUZZ: Sacramento is riding high after successfully shepherding the nation’s largest-ever state budget into law. Now, it’s time to come back down to earth.

Today marks a new fiscal year in California, something that would normally come and go with little notice. But July 1 isn’t just for the state accountants to note. It also marks a scheduled increase in the gas tax and the end of an eviction moratorium for tenants who went to the state for help paying their rents during the Covid-19 pandemic.

Even with the $9.5 billion in cash payments heading to more than 97 percent of Californians, we can imagine the 3-cent increase at the pump is going to be received with some annoyance by residents who are already paying the nation’s highest gas prices. We should note that Democratic leaders opted for direct payments to Californians instead of slashing the gas tax, arguing that the cash payouts (which will range from $200 to $1,050) will help Californians more than a tax reduction, which may not get passed to consumers anyway, lawmakers said.

Today is also the end of the state’s eviction protections. You might recall the moratorium on removing tenants for unpaid rent due to Covid hardships was set to expire on March 31, but lawmakers voted to extend it because so many people were still waiting on the state to process their applications. The Legislature at that time agreed to extend protections for people who still had a pending case for assistance with the state so they wouldn’t lose their housing simply because of bureaucratic delays.

Tenants rushed to apply before applications closed on March 31, and since then the state has doled out a total of about $4 billion of combined state and federal dollars to about 340,000 households. The assistance only covers unpaid rent up through the end of March, so anyone who fell behind in April, May or June was not protected by the moratorium.  

But some applicants are still waiting on rent relief. The State’s Business, Consumer Services and Housing Agency said Thursday that all applications had been processed, but not all money had been distributed. There are about 20,000 tenants who received help earlier and are now waiting on supplemental payments, though the agency said risk of eviction is low for those individuals because in many cases the landlords are aware that a payment is on the way. The agency is also waiting for more documentation from another 5,000 applicants to determine eligibility.

State officials said they feel confident that renters will continue to be supported after the moratorium expires, but Sarah Treuhaft, vice president of research at PolicyLink, said inaction by lawmakers could have serious consequences for vulnerable Californians.

“It is the stated priority of the governor to reduce homelessness and prevent homelessness,” Treuhaft told Playbook. “Yet people are going to become homeless because of the failures of this program.”

The governor’s office pointed out that the budget passed this week includes $1.4 billion to help Californians pay off utility bills that may have piled up during the pandemic, and another $1.9 billion to fund the rent relief program.

But as of today, landlords can evict tenants even if they’re expecting to get help from the state. Whether they do so is up to them.

One upside for renters — now that the state moratorium has expired, it no longer preempts local governments from issuing their own protections. As of today, for example, Los Angeles County is invoking its own restrictions on evictions for certain low-income tenants who have faced hardships due to the pandemic.

BUENOS DÍAS, good Friday morning. A happy summer recess and Fourth of July weekend to our Playbook readers. We’ll be off on Monday for the holiday, but look for us again Tuesday morning in your inboxes.

Got a tip or story idea for California Playbook? Hit us up: [email protected] and [email protected] or follow us on Twitter @JeremyBWhite and @Lara_Korte. 

QUOTE OF THE DAY: “This budget invests in our core values at a pivotal moment, safeguarding women’s right to choose, expanding health care access to all and supporting the most vulnerable among us while shoring up our future with funds to combat the climate crisis, bolster our energy grid, transform our schools and protect communities.” Gov. Gavin Newsom after signing the $308 billion state budget package Thursday. 

TWEET OF THE DAY: @Karenehowell after news that UCLA and USC are looking to join the Big 10 conference: “Pac-12 in talks with the University of Phoenix.”

WHERE ARE THE NEWSOMS? On FOX News. The governor is running a $105,000 ad buy on the conservative cable network in Florida this weekend, and First Partner Jennifer Siebel Newsom is set to appear on “The Next Revolution with Steve Hilton,” Sunday at 9 p.m. EST to discuss her new documentary, “Fair Play.”

A message from the California Clean Cars Campaign:

END OUR PAIN AT THE PUMP! Gas prices are as high as $7 a gallon, forcing many to choose between fuel and essentials like food and medicine. The California Air Resources Board is squandering its opportunity to support gas-free, pollution-free transportation. We need an Advanced Clean Cars program that achieves at least 75% electric car sales by 2030 to bring more and more affordable electric cars to market faster. Visit CleanCarStates.org to learn more.

— “California to end AIDS Healthcare contract, alleging improper negotiation tactics,” by the Los Angeles Times’ Melody Gutierrez: “The foundation and its controversial founder Michael Weinstein are a powerful political force in California, with the group bankrolling rent-control measures, challenging Los Angeles planning decisions and pushing statewide initiatives to lower prescription drug costs and require porn actors to wear condoms.”

SHOT — Supreme Court handcuffs Biden’s climate efforts, by POLITICO’s Alex Guillén: The 6-3 ruling erects a significant obstacle to Biden’s hopes of addressing global warming through executive branch action — barely six months after a Senate stalemate shut down congressional Democrats’ efforts to pass their biggest-ever climate bill.

CHASER — “Extreme heat, drought will permanently scar California and its social fabric,” by the Los Angeles Times’ Hayley Smith: “Some say what’s in store for the state could be akin to the conditions that drove people thousands of years ago to abandon thriving cities in the Southwest and other arid parts of the world as severe drought contributed to crop failures and the crumbling of social norms.”

STEP INSIDE THE WEST WING: What's really happening in West Wing offices? Find out who's up, who's down, and who really has the president’s ear in our West Wing Playbook newsletter, the insider's guide to the Biden White House and Cabinet. For buzzy nuggets and details that you won't find anywhere else, subscribe today.

— “This California progressive prosecutor beat back the tough-on-crime backlash. How?” by the SFGate’s Eric Ting: “Take Contra Costa County District Attorney Diana Becton, a reform-minded incumbent who easily beat back a well-funded challenger lobbing attacks similar to those deployed against [former San Francisco District Attorney Chesa] Boudin.”

— “7 firefighters hurt battling Rices Fire in Northern California as crews stop blaze’s progress,” by the Sacramento Bee’s Rosalio Ahumada: “Firefighters had 12% of the fire contained and had stopped the flames from spreading into neighboring Yuba County.”

OFF THE CLIFF — “A father and son drove off Highway 1 near Devil’s Slide — 30 years apart. Why the road’s deadly past is far from over,” by the San Francisco Chronicle’s Vanessa Arredondo: “‘That spot there, if you're not paying attention, you can go straight ahead into the ocean, and there's nothing to stop you,’ Dan Moss said of the area where officials believe his son went off the road. ‘There was no barrier. There was no guardrail.’”

— “New California data shows which kids get the most qualified teachers — and which don't,” by the San Francisco Chronicle’s Jill Tucker: “The state release offers a snapshot of teacher quality amid what experts fear is a growing teacher shortage, one exacerbated by the pandemic and an aging workforce, with the percentage of fully qualified teachers likely to drop in the years go come.”

— “Ballot measure nail-biter: Should California keep forcing prisoners to work?” by CalMatters’ Byrhonda Lyons: “Under state law, most California prisoners are required to work. Like many other states, California forbids slavery but allows involuntary servitude to punish someone for a crime.”

A message from the California Clean Cars Campaign:

TO THE ARMORY — “‘Rust’ Rallied Hollywood, But Has Spurred Limited Action So Far,” by Hollywood Reporter’s Gary Baum and Carolyn Giardina: “But one trend emerged in multiple interviews: an increased adoption of Airsoft guns — which are replicas that don’t use gunpowder and shoot projectiles with vastly lower muzzle energy — in lieu of firearms retrofitted for blanks.”

— “The man who played Hollywood: Inside Randall Emmett’s crumbling empire,” by the Los Angeles Times’ Amy Kaufman and Meg James: “But by 2019, he was flirting with Hollywood glory. He’d produced a couple of genuine blockbusters, and was in line to claim an Academy Award as one of the producers of Martin Scorsese’s Oscar contender ‘The Irishman.’”

— “Badly-burned Big Basin to reopen next month — but reservations required,” by the San Francisco Chronicle’s Kurtis Alexander.

— “A’s waterfront ballpark wins key state agency vote for Howard Terminal,” by the San Francisco Chronicle’s Sarah Ravani.

— “San Francisco named second-worst-run city in US by WalletHub. City officials are livid.” by the SFGate’s Amy Graff and Joshua Bote.

INTRODUCING POWER SWITCH: The energy landscape is profoundly transforming. Power Switch is a daily newsletter that unlocks the most important stories driving the energy sector and the political forces shaping critical decisions about your energy future, from production to storage, distribution to consumption. Don’t miss out on Power Switch, your guide to the politics of energy transformation in America and around the world. SUBSCRIBE TODAY.

— “Sonny Barger, outlaw who founded the Hells Angels in Oakland, dies.”

— “Don Heller, Squeaky Fromme prosecutor, prominent Sacramento defense attorney, dies at 79.”

Protocol’s Mills Forni … Lanbo Zhang

A message from the California Clean Cars Campaign:

Electric vehicles are the key to freedom from expensive and volatile gas prices. Low-income communities and communities of color are hit from both sides, spending more of their income on fuel and breathing in more toxic tailpipe exhaust that shortens their lives. Strong, equitable electric car sales targets will cut health costs associated with chronic air pollution exposure, support the creation of good jobs in a key economic sector and help unburden family budgets that support local businesses.

Governor Newsom and the Air Resources Board California Air Resources Board cannot fail us in setting stronger electric car standards that save people money at the pump, protect public health, fight the climate crisis and create jobs.

We need electric car sales targets and mandatory equity provisions that achieve at least 75% pollution-free car sales by 2030. Click here to learn more about how we can improve the Advanced Clean Cars program.

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.

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