Thursday, February 15, 2024
WECA Opposes Proposition 1
In 2022, the Governor and State Legislature approved $9.5 billion in tax refunds, part of a $12 billion relief plan hatched before the Governor’s re-election campaign.
For reasons known only to a handful of officials, most refunds were in the form of debit cards that would only be redeemable in a select ATM network. As of 2023, more than 1 million cards had not been activated.
Less than one year later, this same cabal of officials decided the state should borrow $6.38 billion for mental health treatment facilities ($4.4 billion) and supportive housing for homeless veterans and homeless individuals with behavioral health challenges ($2 billion).
WECA is recommending a NO vote.
Proposition 1 is the only proposition on the March ballot – at the insistence of Governor Newsom, who desired no competition on the ballot.
Newsom has contributed some of his campaign money and brow-beat business and labor to pony up more than $12 million to convince voters the state should borrow billions (repaid over 30 years) right after issuing refunds that would have more than paid for the programs in Prop 1.
By comparison, opponents of Prop. 1 have raised only about $1,000 so far. But their underdog effort to persuade voters may ultimately be bolstered by a history lesson.
Prop. 1 is a dual measure to reroute roughly $1 billion annually from mental health funding to housing for people with behavioral health needs. It includes paying for 4,350 supportive housing units and 6,800 mental health treatment beds. For reference, California’s homeless population is estimated to be about 175,000.
But as CalMatters explains, the measure is like a 2018 ballot measure, known as No Place Like Home, that has so far fallen short of its lofty promises.
Like Prop. 1, No Place Like Home used money earmarked for mental health services to pay for a $2 billion housing bond. The campaign to support the measure promised 20,000 new supportive housing units — a number in a Legislative Analyst’s Office report that projected “half of the units would likely be completed within five years” — and it was enough to persuade 63% of voters to say yes.
Five years later, however, the state has built just 1,797 No Place Like Home units as of Feb. 2, according to the program's most recent annual report.
Why the hold up? In addition to high construction and insurance costs, it can take years for developers to line up funds. Resistance from neighborhood groups and communities also delays projects. For example, two of the 10 No Place Like Home projects proposed by real estate developer Eden Housing were hit with environmental lawsuits.
Supporters of Prop. 1, such as Democratic Sen. Susan Eggman of Stockton, who authored part of the measure, said the state has learned lessons from No Place Like Home. Prop. 1 includes exemptions to California’s environmental law to speed up development, and it requires more transparency by mandating counties to submit annual spending reports.
Besides citing the difficulties of building more affordable housing, critics of Prop. 1 are concerned that the measure will slash current services for behavioral and mental health programs. Advocates for people with disabilities have also raised flags that Prop. 1 would allow money to be spent on involuntary confinement facilities.
And, of course, the State Building and Construction Trades Council and PLAs fit into this jigsaw puzzle. The trades made a $1 million contribution to Prop. 1 at the end of December and are in the top five of supporters. Is it coincidental that State Senator Wahab has reintroduced legislation to mandate PLAs on any state, UC, or community college construction project of $35 million or more?
WECA is not insensitive to the homeless problem in California but concluded that Prop. 1 is another government program that will only touch a small fraction of the problem, will be beset with delays and cost overruns, and is a callous ploy to give the Governor and legislative leaders cover on a problem many in California call one of the biggest problems facing the state.
The state could have banked the money it gave back to taxpayers in an election year but is betting many voters will tick a yes vote to “address” homelessness. WECA disagrees and recommends a “NO.”
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No More Vacay Pics
A measure proposed by Sen. Ted Cruz (R-Texas) would allow lawmakers to move around airports protected from the attention of other travelers — and reporters, Politico reports. The move recalls the 2021 scandal in which Cruz was photographed jetting off to a tropical vacation amid the worst winter storm his state had seen in decades, triggering an avalanche of scorn and criticism. Cruz is trying to attach the amendment to the FAA reauthorization, slated to be marked up in the Senate Commerce Committee, on which Cruz serves as ranking member. The amendment would “offer lawmakers a dedicated security escort at airports, along with expedited screening outside of public view.” Federal judges, Cabinet members, and some of their families and staff would get the same privileges.
Cruz justified the measure by pointing to “serious security threats facing public officials” that require “reasonable measures to keep everyone safe.” Senate Republican Commerce Committee spokesperson Melissa Braid said: “This language was drafted in a bipartisan manner to address the growing number of serious threats to justices, judges, public officials, and lawmakers on both sides of the aisle. With rising security incidents at airports, this amendment ensures that — when law enforcement determines that there is a serious threat — reasonable security measures will be taken to keep everybody safe.”
But apparently, airport police agency representatives say it could present a burden, as the amendment language requires TSA to “arrange” escorts, but it could fall to local officials to provide them.
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New Senate Leader
State leaders packed into the Capitol recently to witness the swearing-in of new President Pro Tem Mike McGuire.
McGuire takes the gavel from outgoing leader Toni Atkins, who is termed out this year and focusing her efforts on a 2026 gubernatorial run. Among the other political powerhouses in attendance were Lt. Gov. Eleni Kounalakis, Attorney General Rob Bonta, Superintendent of Public Instruction Tony Thurmond, and head of the California Labor Federation Lorena Gonzalez.
McGuire opened his first remarks as pro tem by praising emergency workers responding to days of fierce storms. He also touted the record number of women serving in the Senate, California’s role as a global leader on climate, and the state’s economic prowess. “No matter what you watch on cable news, we are America’s economic engine,” McGuire said.
McGuire, whom his colleagues described as an “Energizer Bunny,” is now tasked with guiding the chamber through a bleak budget year and what are sure to be tough negotiations with the governor’s administration and the Assembly. [Politico]
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Arizona Elections
Talk may be cheap. Arizona elections certainly are not. That’s the biggest takeaway from year-end campaign finance reports that became available this week for the state’s most competitive federal races. Some of Arizona’s most viral-worthy politicians are coming to a ballot near you, but these reports prove that campaigns know “clicks” alone won’t be enough this year. [Veridus LLC]
U.S. Senate It’s now or never for U.S. Sen. Kyrsten Sinema (I). Arizona’s Senior Senator has $10.6 million in cash-on-hand - a significant cash-on-hand advantage over her rivals. But closing 2023 by only raising approximately $600,000 is cause for alarm. Meanwhile, the April 8 filing deadline is fast approaching, and, as an Independent, Sen. Sinema can’t count on help from the Democratic Party to help her campaign infrastructure stand up.
Rep. Ruben Gallego (D) continues to post impressive numbers, with $3.3 million raised during the period and $6.5 million in cash-on-hand. Republican Kari Lake raised $2 million, but only has $1 million in cash-on-hand. Pinal County Sheriff Mark Lamb (R) raised $265,000 and has just over a quarter-million dollars in cash-on-hand.
CD-1 Rep. David Schweikert (R) finished 2023 with roughly $900,000 in the bank as the battle for this race’s Democratic nomination is shaping up to be fierce with several candidates lending their campaigns six-figure sums to boost fundraising totals. Among Democrats, businessmen Conor O’Callaghan and Andrei Cherny lead the pack as both have roughly $1 million in their campaign account.
CD-3 Phoenix City Councilmember Yassamin Ansari ($312,000) outraised former legislator Raquel Terán ($200,000) during the period, and has more than twice as much cash-on-hand. Advantage: Ansari.
CD-6 Rep. Juan Ciscomani (R) and former state legislator Kirsten Engle (D) each raised over $400,000 during the period, but the GOP incumbent has a commanding edge in cash-on-hand with a campaign war chest that exceeds $2 million.
CD-8 The end-of-year report gives the first glimpse at the Primary battle to replace retiring Congresswoman Debbie Lesko. Blake Masters is largely self-funding his effort thus far and lent his campaign $1 million during the period. Arizona House Speaker Ben Toma led the field in private fundraising, with $340,000 raised during the period. Meanwhile, Abe Hamadeh is lagging the money race with $288,000 raised and a little over $250,000 in cash-on-hand, but has already captured the coveted Trump endorsement and expects to have a well-financed Super PAC to support his effort.
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OSHA Sends Worker Walkaround Final Rule to OIRA
On February 9, the Occupational Safety and Health Administration sent its worker walkaround final rule to OIRA for review. The rule would empower OSHA inspectors to allow union organizers, community activists, or other third parties who do not officially represent the employees or the government to accompany OSHA on an inspection of a workplace, contradicting the plain language of OSHA’s governing regulations, longstanding agency guidance, and past interpretations of federal workplace safety law. It’s a thinly veiled attempt to bypass the NLRA and state property laws by allowing union organizers access to employer property to which they would otherwise not be entitled under the law.
The proposed rule was issued last August, and OSHA received nearly 12,000 comments.
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