THE BUZZ: It’s not quite an October surprise, but California taxpayers could have forgotten about imminently arriving financial relief.
Six months after Gov. Gavin Newsom vowed “immediate motion” on channeling a few of an unprecedented surplus back to Californians, the primary of 18 million payments are set to start out hitting bank accounts today. A wave of debit cards will follow for individuals who haven’t gotten tax refunds via direct deposit. Individuals can get as much as $350 and families with dependents will receive a maximum of $1,050. Newsom repeatedly and publicly touted the rebate yesterday. “I don’t think it could have come at a greater time because it pertains to rising gas prices,” Newsom said during a press conference in San Francisco.
California’s fiscal forecast has darkened because the start of the 12 months. May celebrations a couple of record $97.5 billion revenue windfall — a vindication for champions of California’s progressive tax system — have given approach to a drumbeat of notices that tax collection is falling wanting forecasts. In veto after veto last month, Newsom knocked back legislators by warning “lower-than-expected revenues” require remaining “disciplined in relation to spending.”
One constant throughout: Californians are feeling the strain as inflation persists. In March, 61 percent of voters told the Public Policy Institute of California that price increases were imposing economic hardship. In September, that figure had ticked as much as 65 percent. The upcoming midterm election could hinge on those struggles, the primacy of economic concerns and on underlying pessimism in regards to the state’s longer-term outlook.
So it’s notable that payments will arrive around the identical time as ballots. Los Angeles began sending them to its 5.6 million voters yesterday, and county registrars have until Monday to complete doing the identical. Dissatisfied voters are inclined to punish the party in power, which on this case is Democrats. Will they credit Newsom and the Legislature for lightening the fiscal load? About ten million debit cards will are available in envelopes marked “Necessary details about your Middle Class Tax Refund,” although some won’t land until after the election.
GASSED: Soaring gas prices remain at the center of inflation. Chances are you’ll remember Newsom initially desired to link relief payments to automobile ownership and to halt a planned gas tax increase, each of which Democratic legislative leaders thwarted. Democrats also hijacked a Republican gas tax suspension bill and inserted hostile amendments that might as a substitute impose a windfall tax on oil producers. That was more of a stunt than a viable policy proposal.
But now Newsom is publicly clamoring for the Legislature to enact that very tax, arguing oil corporations — a favourite villain for Newsom today — are fleecing consumers. The governor deflected yesterday on whether he’d call the Legislature back right into a special session (after which emailed donors in regards to the effort). Democratic leaders are unlikely to embrace a tax increase a month before a possible Republican wave election. Which means the labor of marshaling a 2/3 vote will likely must wait until 2023, when gas prices could look different.
FROM THE HOUSE: California’s congressional delegation is adding to the political pressure on in-state oil producers. Rep. Mike Levin and diverse other California Democrats have written to the Federal Trade Commission asking the regulator to analyze California refineries for potential market manipulation.
BUENOS DÍAS, good Friday morning. First Lady Jill Biden is in San Francisco today, where she’ll tour a cancer research facility after which help stock the Democratic Party’s warchest at a DCCC luncheon with Speaker Nancy Pelosi and fellow House Democrats.
Programming Note: We’ll be off this Monday for Indigenous Peoples Day but will probably be back in your inboxes on Tuesday.
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QUOTE OF THE DAY: “ the tangible evidence — communities gone, fires unprecedented, salmon disappearing in large numbers, species being eradicated or extirpated — that’s on a board I even have in my office. I’m not allowed to say ‘extirpated,’ but I’m out of the province so I’m completely happy to say ‘extirpated’ here today. You may Google that.” British Columbia Premier John Horgan shows off his vocabulary before signing a climate agreement in San Francisco with Newsom, Oregon Gov. Kate Brown and Washington Gov. Jay Inslee.
TWEET OF THE DAY
WHERE’S GAVIN? In Sacramento, to swear within the top quality of #CaliforniansForAll College Corps Fellows.
A GROWING CONCERN — “California homeless population grew by 22,000 over pandemic,” by CalMatters’ Manuela Tobias: “The most recent point-in-time count of California’s homeless population shows that it increased at roughly the identical pace as previous years, even though it appears to have disproportionately affected Latinos. Experts say homelessness interventions are paying off but ‘the inflow is killing us.’”
TUNE IN NEXT TIME — “KGO 810, legendary long-time Bay Area talk radio station, ends format, leaves cryptic message,” by the Mercury News’ Ethan Baron and Linda Zavoral: “‘Today we are saying goodbye to the legendary KGO,’ read the message on its website and in a tweet. ‘During the last 80 years, KGO has been here for Bay Area listeners covering and discussing all of the news that has impacted our world and native communities.’ Monday will bring ‘a recent era,’ the message said.”
— “Voters support Newsom’s mental health plan and back mandatory kindergarten, poll shows,” by the Los Angeles Times’ Hannah Wiley and Phil Willon: “Civil and disability rights groups spent the vast majority of the legislative session in fervent opposition to CARE Court over concerns the brand new law could criminalize homelessness and result in mentally sick people being coerced into treatment.”
MAKING A SPLASH — “These 500 San Franciscans are making the largest donations for the 2022 November election,” by the San Francisco Chronicle’s Leila Darwiche and Nami Sumida: “In total, San Franciscans have donated not less than $60 million this election cycle to federal candidates and committees, in accordance with data from the Federal Election Commission.”
DON’T ASK — “Many California GOP candidates are against abortion. They simply don’t prefer to discuss it,” by the Sacramento Bee’s Lindsey Holden: “A bunch of GOP leaders and state Senate and Assembly candidates gathered Wednesday on the Capitol steps to tout their “California Promise” agenda. Speakers were desirous to share their vision for reforming criminal justice policies and helping unhoused residents.”
SHIELDS UP — Health insurer launches fight after failing to win Medi-Cal contract, by POLITICO’s Victoria Colliver: Blue Shield of California filed a grievance Wednesday accusing the state Department of Health Care Services of failing to reply to its requests for public documents as a part of its bid to challenge the contract decisions.
— “State Will Review Psych Exams of More Than 500 SFPD Officers Following Murder Charges Against Alameda Deputy,” by the San Francisco Standard’s Jonah Owen Lamb: “The regional review was launched after 47 deputies in Alameda County were relieved of duty in late September because that they had failed their psychological examinations, information that got here to light after Alameda County Sheriff’s Deputy Devin Williams Jr., 24, allegedly murdered a pair of their Dublin home.”
— “90% of Black parents within the Sacramento region report uncertainty around child-care access,” by CapRadio’s Srishti Prabha: “A Valley Vision and Sacramento State survey released this week indicates that only 22.5% of fogeys feel confident of their ability to access the kid care they need in Sacramento, Sutter, Yolo, Yuba, El Dorado, and Placer counties.”
TAXATION TRIALS — “Awaiting Student Debt Relief In California? Here’s What To Know About Taxes,” by LAist’s Julia Barajas: “All in all, hundreds of thousands of individuals could see their entire remaining balance cleared out with none tax obligations. But as things stand, for those who live in California, you’ll have to pay state taxes.”
— “Jan. 6 riot defendant from Northern California wants out of DC jail, citing mental decline,” by the Sacramento Bee’s Sam Stanton: “[Sean Michael] McHugh, who allegedly texted someone that he “unloaded a complete can of bear spray on a line of cops,” also has filed a grievance against his jailers, claiming he was hit by pepper spray “for absolutely no reason” and had to attend two hours for medical treatment, court documents say.”
— “A fifth death prompts state scrutiny of Veterans Village of San Diego,” by inewsource’s Jill Castellano: “Despite a requirement to report all client deaths to a California oversight agency, Veterans Village hasn’t notified the Department of Health Care Services of any deaths which have occurred this month.”
PLEDGING PARCHED — “More water restrictions likely as California pledges to chop use of Colorado River supply,” by the Los Angeles Times’ Ian James: “4 water districts and the state’s Colorado River Board said in a letter to the federal government on Wednesday that they’re proposing to scale back water use by as much as 400,000 acre-feet per 12 months. That may amount to about 9% of the state’s total water allotment from the river for the subsequent 4 years, through 2026.”
— Biden pardons marijuana offenses, calls for review of federal law, by POLITICO’s Eugene Daniels and Natalie Fertig: “Currently, marijuana is classed as a Schedule I narcotic, meaning it’s deemed to don’t have any medical use and a high potential for abuse. Heroin and LSD are other Schedule I drugs.”
— “Musk’s Twitter Takeover Hits Snag Over Debt-Financing Issue,” by Bloomberg’s Jef Feeley, Michelle F Davis and Paula Seligson: “The 2 sides are expected to file a motion with the court once they have settled all their questions, which might stop the lawsuit that Twitter filed within the aftermath of Musk’s rejection.”
THE FINAL FRONTIER — “Billboards from space might eventually be cheaper than Super Bowl ads — with a much greater audience. Here’s how corporations could start promoting from the cosmos.” by Insider’s Lakshmi Varanasi: “The research paper proposed a plan that might send 50 satellites into the low Earth orbit, which is between 100 to 600 miles above the Earth’s surface.”
— “Roblox sued for allegedly enabling young girl’s sexual, financial exploitation,” by Ars Technica’s Ashley Belanger: “The lawsuit filed Wednesday within the San Francisco Superior Court shows how sexual predators can exploit multiple social platforms directly to cover their tracks while financially and sexually exploiting children.”
— “Forget California and Amsterdam: This country desires to turn into the brand new king of weed,” by the Los Angeles Times’ David Pierson: “Many hours from Bangkok, down a winding road dotted with ornate picket spirit houses, past fields of drooping tapioca plants and across a bridge over the inky green River Khwae, a white-paneled constructing sits in a clearing.”
— “Kanye West tells Tucker Carlson that his Trump support ‘threatened’ his life and profession,” by the Los Angeles Times’ Alexandra Del Rosario: “West and [Fox News’ Tucker] Carlson touched on every part from the results of West supporting former President Trump to abortion (“I’m pro-life”) to his ex-wife, Kim Kardashian. West even managed to say musician Lizzo and Tesla Chief Executive Elon Musk.
— “Joan Didion and the Western Spirit,” by the Los Angeles Times’ Adam Nagourney.
— “Kidnapped family of 4 found dead. ‘There’s no words,’ Merced sheriff says,” by the Los Angeles Times’ Noah Goldberg and Gregory Yee.
OUT-GROWING OR OUT-PRICING — “They grew up in family homes in Oakland. Now, they will’t afford their very own,” by Oaklandside’s Natalie Orenstein.
— “Stabbing Spree on Las Vegas Strip Leaves 2 Dead and 6 Others Injured,” by the Latest York Times’ Vimal Patel.
— “Solar and wind farms can hurt the environment. A recent study offers solutions,” by the Los Angeles Times’ Sammy Roth.
WATER RISK — “This popular California hot spring reportedly still has brain-eating amoeba present within the water,” by the San Francisco Chronicle’s Annie Vainshtein.
— “‘Game of Thrones’ Meets ‘Harry Potter’ Inside This Fantasy-Filled Beverly Hills Home,” by the Wall Street Journal’s Katherine Clarke.
Protocol’s Kwasi Gyamfi Asiedu … Hanson Smith
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