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CORONAVIRUS pressure on economy, politics — KAMALA backs BIDEN — NEWSOM reveals financials — LACEY under runoff bar — DIEP on the bubble

researchsnappy by researchsnappy
March 9, 2020
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THE BUZZ: There are the agendas politicians run on. And then there are the unforeseen crises that tend to overtake those well-laid policy plans.

We saw it with the PG&E bankruptcy and power shutoffs, and now we’re seeing it with the coronavirus: an inescapable issue of direct, concrete urgency to everyday Californians increasingly eclipsing other issues. And while the scores of confirmed California cases, including 21 among passengers of a cruise ship that was halted in the waters off of San Francisco, may seem small, make no mistake: the potential economic repercussions could be enormous.

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That could mean canceled conventions, drop-offs in international trade flowing through West Coast ports, decreased tourism and workers sent home. Legislators are making budget proposals under the shadow of a potentially substantial hit to the revenue they’re counting on; mayors are worrying about exposed first responders and contagion within homeless encampments; officials are proposing ways to alleviate the economic pain among workers and reminding Californians of the safety nets available to them.

From Gov. Gavin Newsom on down, California government is working assiduously to limit the fallout, POLITICO’s Jeremy B. White and Carla Marinucci report: “California is at the heart of the unfolding coronavirus crisis in the United States, forcing Gov. Gavin Newsom, big-city mayors and business leaders to brace for wide-ranging economic impacts in a state deeply dependent on global trade, technology and tourism.

“The situation even has Newsom and President Donald Trump, usually eager antagonists, preaching cooperation as all levels of government work to contain the threat. … Even as political leaders advance similar efforts to blunt the impact, they acknowledged the possibility of sustained damage to the world’s fifth largest economy as potential quarantines loom, international trade dwindles and visitors stay away.”

And it’s a lot more likely kids will be staying home: Newsom warned this weekend that “it’s a question of when, not if, some California public schools will face closure.” That same day, California’s fifth largest school district shuttered its schools for a week in the most significant school closure in America so far. Similarly, universities are switching to remote classes as officials in multiple cities are urging residents to forego nonessential large gatherings.

BUENOS DIAS, good Monday morning. The virus-stricken Grand Princess cruise ship is docking in Oakland today — the latest test of local-state-federal government coordination — and nearly a thousand Californians will be among the quarantined passengers. That has some Oaklanders on edge, and City Council President Rebecca Kaplan pressed the state for assurances the illness won’t spread into the East Bay — though most passengers are bound for Travis Air Force Base.

QUOTE OF THE DAY: “Peaceful protest is one thing. Speaking out is one thing. But bullying is when you are screaming and yelling and trying to embarrass somebody into doing what you want them to do … and what they want me to do is file criminal charges against every police officer who shoots someone in L.A. County. ” Los Angeles DA Jackie Lacey tells the LA Times that protesters who came to her house — and had a gun pulled on them by Lacey’s husband — had crossed a line.

TWEET OF THE DAY: Sen. Kamala Harris, who didn’t endorse before it could affect her home state primary, makes her choice: “.@JoeBiden has served our country with dignity and we need him now more than ever. I will do everything in my power to help elect him the next President of the United States.”

BONUS TOTD: Tesla founder/amateur epidemiologist @ElonMusk: “The coronavirus panic is dumb”

WHERE’S GAVIN? Meeting with mayors of California’s largest cities and legislative leaders to discuss solutions to homelessness, the state’s top priority. Among those who will participate: San Jose Mayor Sam Liccardo; LA Mayor Eric Garcetti; San Diego Mayor Kevin Faulconer; San Francisco Mayor London Breed; Fresno Mayor Lee Brand; Sacramento Mayor Darrell Steinberg; Long Beach Mayor Robert Garcia; Oakland Mayor Libby Schaaf: Bakersfield Mayor Karen Goh; Santa Ana Mayor Miguel Pulido; Riverside Mayor Rusty Bailey; Stockton Mayor Michael Tubbs.

— “A Hayward man disappeared 23 years ago. DNA breakthroughs brought his case back to life,” by the SF Chronicle’s Megan Cassidy: “The turning point in identifying Perry came after the April 2018 arrest of Joseph DeAngelo, a man police say terrorized Californians in the 1970s and ’80s…DeAngelo’s arrest transformed genetic genealogy into one of the most sought-after tools in law enforcement, and a wave of cold-case arrests followed in short order.”

— “AIDS Healthcare vowed to do homeless housing better. Tenants say it’s a ‘slumlord,’’ by LATimes’ Gale Holland: When the AIDS Healthcare Foundation began acquiring aging, single-occupancy hotels on skid row three years ago, its president, Michael Weinstein, lambasted L.A.’s handling of the homelessness crisis and boasted that he could house people at a fraction of the cost.

“Some questioned why the nonprofit powerhouse, which operates 64 outpatient healthcare centers and 48 pharmacies in 15 states, was jumping into housing at the same time it was tangling with the city over ‘mega-developments’ near its Hollywood headquarters. Others welcomed a fresh approach to tackling the intractable homelessness and affordable housing crisis. But now, questions are arising about whether the foundation has gotten in over its head.”

BORDER BATTLES — “Pentagon sends more troops to the border ahead of SCOTUS decision,” by POLITICO’s Lara Seligman: “The Trump administration said it would send the service members to two points on the southwest border — San Ysidro, Calif., and El Paso, Texas — to support U.S. Customs and Border Protection by placing temporary barriers and providing protection for border officers.”

— “Supreme Court asked to block order threatening Trump’s return-to-Mexico asylum policy,” by POLITICO’s Josh Gerstein: “The 9th Circuit Court of Appeals issued an order Wednesday that would halt the policy in California and Arizona starting on March 12.”

WHERE WE STAND: Sen. Bernie Sanders still leads the California-wide vote total, but Biden is closing in: after Bernie led by nearly nine points late Super Tuesday, his margin has tightened to about seven as of Sunday. Meanwhile, neither Sen. Elizabeth Warren nor former NYC Mayor Mike Bloomberg are at 15 percent; Warren got a little closer, while Bloomberg drifted slightly farther away.

Sanders and Biden were both above 15 percent in every House district, which, for all the focus on statewide vote as a gauge of the race, is how more of the delegates are awarded. Sanders is ahead in the majority and holds lopsided margins of 20 points or more in CA-29 (Rep. Tony Cardenas), CA-34 (Rep. Jimmy Gomez), CA-40 (Rep. Lucille Roybal-Allard), CA-46 (Rep. Lou Correa) and CA-51 (Rep. Juan Vargas) — all districts whose electorates are majority Latino or close to it, reflecting his heavy focus on Latino voters. Bloomberg is above 15 percent in close to 20 districts and Warren in a half-dozen, with both hovering close to the bar in several districts.

STEYER SPEAKS — “What I Learned While Running for President,” the Californian writes in the NYTimes: “Whether it’s the warp-speed gentrification of Charleston, the homeless problem in Los Angeles or water pollution in Denmark, S.C., Americans deserve so much better from their government.”

GIG-NITION: Both Sanders and Biden took a moment to cast their lots in with Uber drivers and other app-summoned workers this weekend. Sanders tweeted his support of a gig workers’ group pushing companies to offer health safeguards, blasting “the greed of corporations.“ A few hours later, Biden threw his weight behind AB5 and assailed an industry-funded campaign to weaken it, tweeting “we can’t let corporations undermine basic rights by adding these exemptions to ground-breaking legislation.”

FROM A CA NEVER-TRUMPER — “Why Trump fears Biden most,” GOP strategist Rob Stutzman writes in the WaPo: “Biden is a well-known brand that, while laden with all the attributes of a career D.C. pol, also oozes authenticity and love of country. For all the wounds and warts that come with a politician in twilight, Biden is the rival Trump least wants to face.”

HERE WE GO: For the first time since election night, Los Angeles District Attorney Jackie Lacey has dipped under the 50 percent-plus-one she needs to avoid a November runoff with progressive challenger and former SF DA George Gascón. On Friday night, Lacey edged 31 votes below the threshold. There’s more ballots to count, but this one is a true nailbiter.

WATCHING: Assemblyman Tyler Diep is in peril of being unseated by in the primary. The Orange County Republican tumbled to the precipice of being locked out of the general this weekend as his lead over Democrat Diedre Nguyen shrank to a mere 309 votes. He’s lagging far behind conservative challenger and former state Sen. Janet Nguyen, who’s channeling Republican anger over Diep’s labor-friendly record.

IN THE VALLEY — “Costa survives intra-party challenge in CA-16,” by POLITICO’s Ally Mutnick: Fresno City Councilwoman Esmeralda “Soria racked up support from local activists and organized labor, including Dolores Huerta. But she was outspent by Costa by a nearly 4-to-1 margin. She ran on a liberal platform and backed ‘Medicare for All’.” (Pro link)

— “Stealth political ads flourish on Facebook,” by POLITICO’s Mark Scott: “More than half of Facebook pages that displayed U.S. political ads during a recent 13-month period concealed the identities of their backers, according to research reviewed by POLITICO — a tide of deceptive messaging that raises new questions about the social network’s promises of transparency.”

PROP 13 PREMORTEM — “School bonds usually are a cinch in California — what happened this time?” by CalMatters’ Ricardo Cano.

— “Primary results show how Orange County differs from the rest of California,” by the OC Register’s Brooke Staggs.

— “Lawmakers ask a wary Newsom for ‘one of the biggest’ budget asks on homelessness,” by POLITICO’s Jeremy B. White: “The $2 billion proposal reflects (a) desire for ongoing funding, but it could run up against Newsom’s reluctance to make substantial continuing budget commitments with the specter of a potential economic recession on the horizon.” (Pro link)

EMPTY LOTS AND PRAYERS — “California churches, hospitals could build affordable homes on empty land under new bill,” by the Sac Bee’s Hannah Wiley: “Senate Bill 899 would permit those organizations and their partnered developers to work around local zoning rules that often limit or block affordable projects.”

HALT! — “State orders permanent shutdown of oil drilling site near USC,” by the LA Times’ Emily Alpert Reyes: “California regulators are ordering Allenco Energy to plug wells and decommission an oil drilling site whose neighbors once complained of nosebleeds, headaches and other ailments, permanently closing the South Los Angeles facility.”

— “Conservatives sue over state law that limits public employers’ anti-union talk,” by the OC Register’s Roxana Kopetman.

— “PG&E’s bankruptcy exit plan gets a price tag: $57.65 billion,” by the SF Chronicle’s J.D. Morris: “That would appear to make the company’s exit from protection under Chapter 11 of the U.S. Bankruptcy Code one of the priciest undertakings of its kind.”

RIP — “Katcho Achadjian dead at 68,” by the Cal Coast Times’ Karen Velie: “Katcho Achadjian, best known for serving three terms on the California State Assembly, has died.”

CHANGING FAST — “As coronavirus overwhelms California health officials, hope of ‘containment’ fades,” by the LATimes’ Taryn Luna and Melody Gutierrez: “Some officials have acknowledged that the spread of the virus is beyond their control, and there is widening discussion on whether they should shift from a strategy of tracking every potential exposure to asking the public to limit social gatherings.”

— “Riverside County declares coronavirus emergency amid Coachella questions,” by the LATimes’ Andrew J. Campa, Alejandra Reyes-Velarde, Alex Wigglesworth.

HOW WE GOT HERE — “How testing failures allowed coronavirus to sweep the U.S.,” by POLITICO’s Joanne Kennedy: “The slowness of the testing regimen — which, administration officials acknowledged this week, is still not producing enough tests to meet the national demand — was the first, and most sweeping, of many failures.”

— “Trump’s mismanagement helped fuel coronavirus crisis,” by POLITICO’s Dan Diamond: “For six weeks behind the scenes, and now increasingly in public, Trump has undermined his administration’s own efforts to fight the coronavirus outbreak — resisting attempts to plan for worst-case scenarios, overturning a public-health plan upon request from political allies and repeating only the warnings that he chose to hear.”

BIG TECH’S PART — “Senator asks gig companies to fight coronavirus by helping sick workers stay home,” by the LA Times’ Johana Bhuiyan: “Sen. Mark Warner (D-Va.) is asking Uber, Lyft, Postmates, Grubhub, Doordash and Instacart to alleviate some of the potential financial burden their drivers and couriers may face if they become ill with COVID-19 or choose to reduce their exposure by staying home.”

TESTING TROUBLE — “Chaos at hospitals due to shortage of coronavirus tests,” by the LA Times’ Emily Baumgaertner and Soumya Karlamangla.

— “Coronavirus testing bottleneck frustrates Bay Area health officials,” by the SF Chronicle’s Erin Allday and Catherine Ho.

STILL ON — “After Elk Grove Canceled School Events Over Coronavirus Fears, Sheldon Boys Basketball Playoff Game Rescheduled,” by Capital Public Radio’s Sarah Mizes-Tanan and Nick Miller.

PLAY BALL… CAREFULLY — “A’s taking precautions regarding coronavirus,” by the SF Chronicle’s Matt Kawahara: “In lieu of players signing fans’ items, the A’s said they’ll pre-autograph baseballs.”

— “Anxiety, chardonnay and anger at Trump: Friday on a cruise line hit by coronavirus,” by the LATimes’ Anita Chabria.

— “Newsoms earned $1.2M in 2018, most from Napa wine businesses,” by POLITICO’s Mackenzie Mays: “Nearly $400,000 was reported in wages — most from Siebel Newsom — while the remaining bulk of their earnings came from their Napa Valley wine businesses.” (Pro link)

ADNESS — “‘Manipulated media’: Twitter applies new label to edited video of Biden,” by POLITICO’s Rishika Dugala.

— “Tesla Sent Incomplete Injury Reports, California Regulator Says,” by Bloomberg’s Josh Eidelson and Dana Hull: “Tesla omitted hundreds of injuries that the company listed in logs at its factory from annual summary data that the company sends to the government, according to a memorandum the state’s workplace-safety agency sent in December.”

GREEN FLAG — “Taking an Uber or Lyft pollutes more than driving, California finds. Next stop: Regulations,” by the LATimes’ Tony Barboza: “Behind the tap-of-your-phone convenience of hailing an Uber or Lyft lies an inconvenient truth: Such rides generate more carbon emissions than simply driving yourself.”

— “To Avoid Charges of Price Gouging, eBay Bans Sale of Coronavirus Supplies,” by Reason’s Billy Binion.

— “MGM to Take $30 Million-Plus Hit After Moving Bond Film ‘No Time to Die’,” via The Hollywood Reporter.

— “In San Francisco, cannabis business hasn’t hit the highs expected when it went legal,’’ by SFChronicle’s Phil Matier.

— “Magnitude 5.9 quake strikes off the coast of Northern California,’’ via LATimes.

— “‘If I stay here, I’m going to die’: As one man overdosed, a Tenderloin church offered a sacred death,” by the SF Chronicle’s Jill Tucker.

— “Movie star and comedian Kevin Hart shares financial failures with Oakland students,” by the SF Chronicle’s Jill Tucker.

— “Controversial Walker Lake hydropower proposal by California firm wins preliminary permit,” by the Reno Gazette Journal’s Benjamin Spillman.

FROM THE WEEKEND:

Saturday: former Rep. Elton Gallegly turned 76 ... Rep. Juan Vargas turned 59 … James Gleeson, comms director at SpaceX …

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.

Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Jesse Shapiro to find out how: [email protected].

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