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Recession is coming in America almost certainly and California might be hit hard, Gov. Gavin Newsom says

Regular readers of Governor Gavin Newsom’s veto statements may have recently detected a new theme.

Newsom, repeatedly: “As our state faces lower-than-anticipated revenues in the first several months of this fiscal year, it is essential to maintain fiscal discipline.”

Before the governor’s nearly identically worded appeals to fiscal responsibility, bills to increase health insurance subsidies, exempt manufacturers from certain sales taxes, help more children receive mental health care through schools, and allow some California students to ride public transit for free all failed. 18 (exactly two-thirds) of the 27 legislation that Newsom has rejected since the end of the legislative session had some variation of this now-familiar phrase.

Fortunately, the governor has never had to lead the state during a protracted economic depression. Nonetheless, with income tax receipts 11% below forecasts so far this year, it appears that Newsom is channeling his inner Jerry Brown.

Not always should veto messages be taken at face value. A governor is rarely punished politically for acting as the responsible adult in the room, so this new, frequently-used phrase may be nothing more than politically advantageous boilerplate — a method for the governor to veto a law he opposes without having to specify why.

Chris Micheli, a senior Capitol lobbyist, noted the repeated veto message and believes it could reflect a significant shift in the administration’s economic stance.

“A common veto message from Governor Newsom and his predecessors includes a comment that a law that spends money should go through the budget process,” said Micheli. However, I believe the wording he uses in these veto messages reflects a change in the fiscal outlook.”

H.D. Palmer, a spokesman for Newsom’s Department of Finance, stated in an email that the governor has been signaling his budgetary worries for months, citing the administration’s record-setting spending plan that allocated nearly the entire surplus to one-time expenses.

Palmer: “As we have often stated this year, and as the Governor has underscored in his most recent veto messages, the possibility of ongoing losses on the revenue side of the ledger necessitates that we keep a tight eye on the expenditure side.”

This may also explain, at least in part, why Newsom, an otherwise avid supporter of electric vehicles, has taken such a prominent stance against Proposition 30 – a ballot proposition that would raise funding for EV infrastructure by increasing millionaires’ income tax rates.

One argument against the bill is that over half of California’s income tax revenue comes from the top 1% of earners, whose income fluctuates with every stock market boom and fall. If a recession is imminent, it would be unwise to increase the state’s dependence on a risky revenue stream, so the argument goes.

Or, as the governor may say, “it is essential to maintain discipline.”

On Monday morning, Newsom flew east to participate in the 14th annual Climate Week NYC, a meeting of politicians, CEOs, philanthropists, members of the coverage-setting intelligentsia, and activists whose purpose is to demonstrate and advocate for various climate change solutions.

Imagine a worldwide trade exhibition for preventing the end of the world.

This is not Newsom’s first appearance at the event; he delivered the opening address in 2019. This year, though, he has a few additional items to display.

Friday, the governor signed a package of measures that codifies the state’s lofty emission-reduction and grid-greening goals. This follows previous announcements by the state’s climate regulators, which the governor applauded, to phase out the sale of gas-powered automobiles and heavy-duty trucks.

Today, Newsom will host a climate-related “fireside talk” at the Clinton Global Initiative. In addition to the political advertisements in Florida, the trip to Washington, D.C., the abortion billboards, and the country-cross debate challenge, Newsom’s New York activities will be another chance for him to increase his national recognition. The governor claims he has no intention of running for president, but some (unnamed sources) assert otherwise.

While Newsom promotes California’s climate policy in New York, Californians face a number of environmental difficulties at home.

Thousands of dead fish continue to wash ashore in the San Francisco Bay as a result of a historic “red tide” algae bloom. According to experts, it is likely due to inadequate sewage filtration and a rising ocean.
Even though the Mosquito Fire has already consumed more than 76,000 acres in the foothills northeast of Sacramento, early week precipitation assisted firefighting workers in constructing containment lines around 39% of the inferno.
A plan to turn a section of desert in the Coachella Valley into a 12-acre artificial wave pool for surfers is met with opposition from the drought-stricken local population.
A visit by the interim governor

As soon as Newsom entered Nevada airspace, the power and responsibilities of his office were officially transferred to California’s lieutenant governor, Eleni Kounalakis.

She told CalMatters on Monday that she would not sign any major legislation before Newsom’s return on Thursday. The conversation was taped, and we’ll be sharing it shortly. However, here’s an example:

Kounalakis, co-chairwoman of the Proposition 1 campaign, has stated that she is devoting more time to the abortion rights initiative than to her own reelection campaign. This includes fundraising: She stated that the Prop. 1 finance team concluded it required additional funds to raise voter awareness three weeks ago.

Therefore, she utilized every contact in her Rolodex, including the Federated Indians of Graton Rancheria, a gaming tribe that is adamantly opposed to Proposition 27, the online sports betting measure backed by DraftKings, FanDuel, and other out-of-state companies, which Kounalakis also publicly opposes.

According to her narrative, she received a call from Graton authorities late on a Friday evening. They informed her that Native American women cared enough about abortion rights for the tribal council to sign a $5 million cheque.

When asked if she would be more vocal against Proposition 27 in exchange, she declined. However, she plans to contribute $100,000 of her own funds to support Proposition 1.

The discussion was for the CalMatters Voter Guide, which will feature interviews with a number of candidates running for statewide office in California in November.

In case you missed it, there is a new feature in the guide. In addition to the statewide races, proposals, and battles for congressional, Assembly, state Senate, and U.S. Senate seats in California, we also have a website with candidate information for the four state Supreme Court positions up for retention and confirmation (yes, this is also on your ballot). New rules for legal marijuana

Newsom also signed ten laws over the weekend to aid the struggling legal cannabis business.

Among the most notable pieces of legislation are those that prohibit employers from punishing employees for using marijuana outside of work, require local governments to allow medical dispensaries to deliver cannabis, and expedite the expungement of old marijuana-related offenses from criminal records.

SB 1326, which has received less attention, might ultimately have a profound effect on the state’s cannabis economy.

The bill, authored by Democrat Sen. Anna Caballero of Salinas, would permit Newsom to enter into trade agreements with other states that have legalized recreational marijuana. According to proponents, this would provide a relief valve for California’s oversaturated market.

However, there is a catch: the policy cannot be implemented until the attorney general determines that doing so will not violate federal law. It is unknown what Attorney General Rob Bonta thinks of the proposal; his office has stated that it is awaiting a formal request to comment.

However, cannabis proponents across are optimistic.

Despite the fact that at least some political analysts expect that this year’s midterm elections could significantly alter the national political landscape regarding marijuana.

It is appropriate that Newsom is the one to negotiate into these interstate agreements. In 2016, when California voters approved recreational marijuana, he was the campaign’s face.

This week’s slew of new marijuana legislation come at a time of crisis for the legal marijuana sector in California. As reported in a continuing story by the Los Angeles Times, the state’s illicit market continues to flourish, authorized enterprises are frequently unable to compete, and the flood of cannabis cash in some towns has unleashed a tide of political corruption.

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