There are no best friends on budget day
MEDICAL DEBT: For a man who came into office calling himself the 'health care governor,' filled his office with health industry insiders and enjoyed massive financial and campaign support from the health care sector, Gavin Newsom made some surprising moves to close the state's budget shortfall.
The budget plan Newsom unveiled yesterday not only includes deep cuts to Medi-Cal and Planned Parenthood — it also sweeps billions of dollars from a health care ballot measure championed by a who's who of health care interests into the state's general fund, sparking intense and personal backlash.
Newsom has had an exceedingly close relationship with prominent players in health care, especially organizations like the California Medical Association and Planned Parenthood. Leaders from Planned Parenthood, a major force in Democratic politics, handed out 'WE LOVE GAVIN + JEN' T-shirts on election night in 2018, and helped Newsom fend off a recall attempt in 2021.
The governor's inner circle is full of people who have notched time in the industry — either in-house or as consultants — like Jim DeBoo, Erin Mellon, Stuart Thompson, Anthony York, Brandon Richards, Dana Williamson, Dustin Corcoran and Jason Kinney. The ties are personal, not just political.
For those who don't remember: Proposition 35 was an effort from the most powerful health care interests in the state to lock up the proceeds of a tax on some health insurance plans. Instead of letting the governor move all of it into the general fund (as all previous governors had done), the doctors, hospitals, health plans and others hammered out a statewide ballot measure that directed the money to specific pay increases for Medi-Cal providers.
The measure passed with an overwhelming 68 percent of the vote back in November, designating rate hikes for certain medical specialties to strengthen the Medi-Cal safety net.
But, but, but: Newsom hated Prop 35. He complained that it tied his hands budgetarily, overly prescribing the funds and not giving him enough flexibility to spend. The governor never formally opposed it but made his feelings known whenever he was asked. The rift between Newsom and his longtime allies only deepened after the election, when they bemoaned that he was dragging his feet implementing the measure. Now, it's clear he wants to go back on it entirely.
The rage-filled backlash to Newsom's budget announcement was almost instant.
'We believe the Administration's proposal to swipe Proposition 35 funds in order to backfill the state's budget is not only a direct violation of state law, but also a snub to the millions of California voters — 68% — who supported this ballot measure last fall,' said California Hospital Association President Carmela Coyle in a statement excoriating the 'smoke and mirrors budget.'
California Medical Association President Shannon Udovic-Constant said Newsom was breaking promises in order to fill a budget hole of his own making.
Meanwhile, the governor's office is still blaming Prop 35 for the state's budget woes. A spokesperson pointed to it as the reason why the latest budget proposal cut over $500 million from Planned Parenthood's budget, saying the ballot measure left the state with an 'unfunded mandate' to contend with.
Planned Parenthood Affiliates of California President Jodi Hicks — who glowingly live-tweeted Newsom's 2023 debate performance against Florida Gov. Ron DeSantis on Fox — delivered one of the most blistering critiques.
'With this May Budget Revision, Governor Newsom is effectively defunding Planned Parenthood in the state of California,' Hicks said. 'Make no mistake: this crushing proposal — the same morning Congress debated whether or not to defund Planned Parenthood nationwide — would immensely harm patients in California.'
These funding decisions are not yet final and must be negotiated with Democratic lawmakers. But if nothing changes, there's a chance some of Newsom's longtime friends and allies take him to court. A statement from Molly Weedn of the Prop 35 coalition said the proposal 'raises serious legal concerns and disregards the will of California voters.'
IT'S THURSDAY AFTERNOON. This is California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check on California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to lholden@politico.com.
WHAT YOU NEED TO KNOW TODAY
MILES TO GO: The Assembly's embattled sex trafficking bill advanced off the floor today — but author Nick Schultz's respite likely won't last for very long.
Schultz and Assembly Speaker Robert Rivas negotiated amendments to AB 379 that would make it easier for prosecutors to charge felonies for soliciting 16- and 17-year-olds for sex — with exceptions for those within three years of a victim's age. (That agreement only came after original author Maggy Krell, a Sacramento Democrat, dragged her caucus through an embarrassing debate over sex trafficking.)
Democrats mostly fell in line to move the bill out of the Assembly today, with the exception of Oakland Assemblymember Mia Bonta, who declined to vote on it.
LaShae Sharp-Collins, a San Diego Democrat, previewed a possible fight to come in the Senate over another portion of the bill that adds penalties for loitering with the intent to solicit sex workers.
'History has shown that these types of crimes are disproportionately used against people of color and those experiencing poverty,' she said on the Assembly floor. 'When laws are vague, they are ripe for profiling.'
Sharp-Collins said her future support for the bill would be contingent on amending that section of the legislation.
She's likely to get her wish. Schultz on Monday acknowledged the loitering provision 'is another piece that will change.'
IN OTHER NEWS
PROP 36 BUDGET WOES: Opponents and proponents of tough-on-crime ballot measure Proposition 36 aren't giving up on their push for state money — even after Newsom's revised budget largely hung them out to dry.
The Senate Public Safety Committee and Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor and Transportation met today for an informational hearing on the initiative, which increased penalties for some theft and drug crimes.
In particular, local officials continue to lobby lawmakers for resources to implement a portion of the ballot measure that requires drug treatment in exchange for dropping felony penalties.
County behavioral health agencies will need $95 million to $213 million annually for evaluations, court-related activities and treatment, said Michelle Cabrera of the County Behavioral Health Directors Association of California.
'On the one hand, we're going to have our local courts and law enforcement partners telling us that we must address the treatment needs of individuals coming through this as a matter of justice and due process,' Cabrera said 'On the other hand, we're going to have Medi-Cal beneficiaries who are competing for those same scarce beds.'
OH SNAP: As Newsom and state lawmakers figure out how to close a $12 billion budget gap, federal lawmakers are actively worsening the situation.
The House Agriculture Committee on Wednesday night voted along party lines to advance legislation that could cut $300 billion in Supplemental Nutrition Assistance Program funding, kicking the cost down to states, our Grace Yarrow reported.
The GOP proposal would create the largest overhaul in decades to the SNAP program — which helps more than 42 million people in the U.S. pay for food — by forcing states to share the cost of food-stamp benefits.
The House Budget Committee plans to combine the legislation with other legislation to curb federal spending before a floor vote. But the GOP's plans for the so-called megabill may be hitting a roadblock, our Mia McCarthy and Meredith Lee Hill report today.
At least three hard-liners are now pledging to oppose the legislation, calling Speaker Mike Johnson's Memorial Day deadline for a floor vote into question.
WHAT WE'RE READING TODAY
— The Supreme Court today sounded inclined to rein in the use of national injunctions by judges to halt Trump's policies, including the president's order to end birthright citizenship. (POLITICO)
— Sacramento Democratic Rep. Doris Matsui says that a bill approved by the House Energy and Commerce Committee would 'rip massive holes in the states' budgets that are nearly impossible to fill.' (San Francisco Chronicle)
— FEMA cuts to the Building Resilient Infrastructure and Communities grants might cause Rancho Palos Verdes to spend nearly its entire annual budget on its worsening landslide zone. (Los Angeles Times)
AROUND THE STATE
— San Diego may dip into the city's reserves for the first time in years amid budget problems. (San Diego Union-Tribune)
— The average San Jose renter needs to make over $130,000 a year to comfortably afford payments. (San Jose Mercury News)
— Sacramento Mayor Kevin McCarty will receive a 12-percent raise, bringing his yearly salary to more than $180,000. (Sacramento Bee)
— compiled by Nicole Norman
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Jessica Ramos endorsing Andrew Cuomo for NYC mayor weeks after questioning his ‘mental acuity'
NEW YORK — In an extraordinary about-face, back-of-the-pack mayoral candidate Jessica Ramos is endorsing her front-running rival Andrew Cuomo — just weeks after questioning his 'mental acuity' and comparing his mental state to former President Joe Biden's. Ramos, a Queens state senator who was also among scores of lawmakers to call for Cuomo's 2021 resignation as governor over sexual misconduct accusations, is expected to formally throw her political weight behind his mayoral bid at a press conference in Manhattan on Friday morning, sources confirmed to the Daily News. Ramos and her campaign didn't immediately return multiple calls. But she told the New York Times, which first reported her surprising decision, that she's going with Cuomo because 'he's the one best positioned right now to protect this city.' Cuomo, who's polling as the favorite to win the June 24 Democratic mayoral primary, 'knows how to hold the line and deliver under pressure,' she added, citing uncertainty caused by President Donald Trump. Ramos, who identifies as a progressive Democrat, said she's not dropping out and her name will still appear on the primary ballot. But her endorsement of the centrist Cuomo is an effective acknowledgement she has no path to victory. Most polls of the mayoral race have shown Ramos pulling 1% or less in support. On the fundraising side, she hasn't taken in enough cash to qualify for matching funds and her latest filing from last month showed she had just about $9,000 in her war chest. The Cuomo nod marks a drastic flip-flop for Ramos, who said in April she believes Cuomo's 'mental acuity is in decline.' 'I don't think the City of New York can afford a Joe Biden moment,' she said at the time, referring to the former president who ended his reelection bid last year after serious concerns emerged about his mental fitness. 'I think that there are real reasons why [Cuomo is] not answering questions.' In response to her mental fitness broadsides against Cuomo, his spokesman Rich Azzopardi shot back in April: 'Was she sober when she said it?' Azzopardi didn't immediately return a request for comment Friday. Ramos has been a harsh critic of the centrist Cuomo on a number of other fronts, too. 'People may want to be courteous to Cuomo's face but they don't forget the people he sent to die, the women he touched or the people he left in our streets needing mental health care and housing,' Ramos wrote on X in March, referring to accusations that Cuomo mismanaged the COVID pandemic, sexually harassed more than 10 women and shuttered psychiatric institutions statewide as governor. Cuomo has denied the sexual harassment and pandemic mismanagement claims. Ramos' change of heart comes just days after the progressive Working Families Party ranked her its No. 5 candidate as part of an anti-Cuomo mayoral endorsement slate. On Friday, the party, which has had a rocky relationship with Ramos over the years, said it's 'sad and disappointed' by Ramos' announcement, but vowed to not 'be distracted by this desperate move.' Party leaders declined to immediately say whether they will formally remove Ramos from the slate. Ramos, the chair of the State Senate's Labor Committee, was the first woman to enter the 2025 mayoral race and had hoped to build a coalition rooted in union and Latino communities. But she never gained momentum on the campaign trail, as other progressives in the race, like runner-up candidate Zohran Mamdani, capitalized on a surge in enthusiasm for left-wing politics among young voters. During the first mayoral debate this week, Ramos lobbed a barb at Mamdani, Cuomo's top rival in the race, saying she wished she had run for mayor in 2021. 'I thought I needed more experience, but turns out you just need to make good videos,' she said, a reference to Mamdani's social media strategy. -----------
The Hill
25 minutes ago
- The Hill
Watchdog investigating whether Hegseth aides were asked to delete Signal messages: Report
WASHINGTON (AP) — The Pentagon's watchdog is looking into whether any of Defense Secretary Pete Hegseth's aides were asked to delete Signal messages that may have shared sensitive military information with a reporter, according to two people familiar with the investigation and documents reviewed by The Associated Press. The inspector general's request focuses on how information about the March 15 airstrikes on Houthi targets in Yemen was shared on the messaging app. This comes as Hegseth is scheduled to testify before Congress next week for the first time since his confirmation hearing. He is likely to face questions under oath not only about his handling of sensitive information but also the wider turmoil at the Pentagon following the departures of several senior aides and an internal investigation over information leaks. Hegseth already has faced questions over the installation of an unsecured internet line in his office that bypassed the Pentagon's security protocols and revelations that he shared details about the military strikes in multiple Signal chats. One of the chats included his wife and brother, while the other included President Donald Trump's top national security officials and inadvertently included The Atlantic's editor-in-chief, Jeffrey Goldberg. Pentagon press secretary Kingsley Wilson had no comment on Friday, citing the pending investigation. The inspector general's office didn't immediately respond to a request for comment. Besides finding out whether anyone was asked to delete Signal messages, the inspector general also is asking some past and current staffers who were with Hegseth on the day of the strikes who posted the information and who had access to his phone, according to the two people familiar with the investigation and the documents reviewed by the AP. The people were not authorized to discuss the investigation and spoke on the condition of anonymity. Democratic lawmakers and a small number of Republicans have said that the information Hegseth posted to the Signal chats before the military jets had reached their targets could have put those pilots' lives at risk and that for any lower-ranking members of the military it would have led to their firing. Hegseth has said none of the information was classified. Multiple current and former military officials have said there is no way details with that specificity, especially before a strike took place, would have been OK to share on an unsecured device. 'I said repeatedly, nobody is texting war plans,' Hegseth told Fox News Channel in April after reporting emerged about the chat that included his family members. 'I look at war plans every day. What was shared over Signal then and now, however you characterize it, was informal, unclassified coordinations, for media coordinations and other things. That's what I've said from the beginning.' Trump has made clear that Hegseth continues to have his support, saying during a Memorial Day speech at Arlington National Cemetery in Virginia that the defense secretary 'went through a lot' but 'he's doing really well.' Hegseth has limited his public engagements with the press since the Signal controversy. He has yet to hold a Pentagon press briefing, and his spokesman has briefed reporters there only once. The inspector general is investigating Hegseth at the request of the Republican chairman of the Senate Armed Services Committee, Sen. Roger Wicker of Mississippi, and the committee's top Democrat, Sen. Jack Reed of Rhode Island. Signal is a publicly available app that provides encrypted communications, but it can be hacked and is not approved for carrying classified information. On March 14, one day before the strikes against the Houthis, the Defense Department cautioned personnel about the vulnerability of the app. Trump has said his administration targeted the Houthis over their 'unrelenting campaign of piracy, violence and terrorism.' He has noted the disruption Houthi attacks caused through the Red Sea and the Gulf of Aden, key waterways for energy and cargo shipments between Asia and Europe through Egypt's Suez Canal. The Houthi rebels attacked more than 100 merchant vessels with missiles and drones, sinking two vessels and killing four sailors, between November 2023 until January this year. Their leadership described the attacks as aimed at ending the Israeli war against Hamas in the Gaza Strip.
Yahoo
25 minutes ago
- Yahoo
Migrants and ICE officers contend with heat, smog and illness after detoured South Sudan flight
WASHINGTON (AP) — Migrants placed on a deportation flight originally bound for South Sudan are now being held in a converted shipping container on a U.S. naval base in Djibouti, where the men and their guards are contending with baking hot temperatures, smoke from nearby burn pits and the looming threat of rocket attacks, the Trump administration said. Officials outlined grim conditions in court documents filed Thursday before a federal judge overseeing a lawsuit challenging Immigration and Customs Enforcement efforts to swiftly remove migrants to countries they didn't come from. Authorities landed the flight at the base in Djibouti, about 1,000 miles (1,600 kilometers) from South Sudan, more than two weeks ago after U.S. District Judge Brian E. Murphy in Boston found the Trump administration had violated his order by swiftly sending eight migrants from countries including Cuba and Vietnam to the east African nation. The judge said that men from other countries must have a real chance to raise fears about dangers they could face in South Sudan. The men's lawyers, though, have still not been able to talk to them, said Robyn Barnard, senior director of refugee advocacy at Human Rights First, whose stated mission is to ensure the United States is a global leader on human rights. Barnard spoke Friday at a hearing of Democratic members of Congress and said some family members of the men had been able to talk to them Thursday. The migrants have been previously convicted of serious crimes in the U.S., and President Donald Trump's administration has said that it was unable to return them quickly to their home countries. The Justice Department has also appealed to the Supreme Court to immediately intervene and allow swift deportations to third countries to resume. The case comes amid a sweeping immigration crackdown by the Republican administration, which has pledged to deport millions of people who are living in the United States illegally. The legal fight became another flashpoint as the administration rails against judges whose rulings have slowed the president's policies. The Trump administration said the converted conference room in the shipping container is the only viable place to house the men on the base in Djibouti, where outdoor daily temperatures rise above 100 degrees Fahrenheit (38 degrees Celsius), according to the declaration from an ICE official. Nearby burn pits are used to dispose of trash and human waste, and the smog cloud makes it hard to breathe, sickening both ICE officers guarding the men and the detainees, the documents state. They don't have access to all the medication they need to protect against infection, and the ICE officers were unable to complete anti-malarial treatment before landing, an ICE official said. 'It is unknown how long the medical supply will last,' Mellissa B. Harper, acting executive deputy associate director of enforcement and removal operations, said in the declaration. The group also lacks protective gear in case of a rocket attack from terrorist groups in Yemen, a risk outlined by the Department of Defense, the documents state. ___ Associated Press writer Rebecca Santana contributed to this story.
