California
California tech leaders challenge progressive policies as billionaires, businesses flee: report
Rep. Kevin Kiley, R-Calif., criticized California’s ‘devastating’ proposed wealth tax and how it will affect the state’s residents on ‘The Evening Edit.’
A group of tech industry leaders and self-described “radical centrists” are vowing to push back on left-leaning policies in California that are causing an exodus among wealthy entrepreneurs and businesses from the Golden State.
The New York Post reported that the group held an event attended by about 350 people in Mountain View, California, that featured elected officials, including San Jose Mayor Matt Mahan, San Francisco District Attorney Brooke Jenkins, tech industry leaders and hundreds of attendees who want to challenge the progressive tilt of the state’s policies.
The meeting comes as several prominent wealthy entrepreneurs have left California to avoid a proposed 5% one-time wealth tax on billionaires who were California residents at the start of this year, with the tax due next year. Meta CEO Mark Zuckerberg, Google co-founders Larry Page and Sergey Brin, Oracle founder Larry Ellison and PayPal co-founder Peter Thiel are among those who have moved assets or relocated from California.
Business leaders who are spearheading the group urged those in attendance not to give up on California by leaving and instead push back on left-leaning policies by electing more moderate politicians.
CHEVRON WARNS NEWSOM’S ‘ADVERSARIAL’ ENERGY AGENDA WILL CRIPPLE CALIFORNIA ECONOMY, SEND GAS PRICES SOARING
Y Combinator CEO and founder Garry Tan launched “Garry’s List” to educate voters about California politics. (David Paul Morris/Bloomberg via Getty Images)
“Some people have decided to leave our state as some kind of heroic thing. Like, ‘I’m going to Florida,’” Ripple Chairman Chris Larsen said at the event, according to the Post’s report. “That is not brave. That’s surrender. So, let’s get involved. Let’s take back our state.”
Larsen said the group needs to “fight on par with the unions when they’re proposing stupid job-killing ideas like the San Francisco CEO tax.”
He also called out Democratic politicians who are competing to become the party’s nominee for California governor, including former Democratic presidential primary candidate Tom Steyer, Rep. Eric Swalwell and former Rep. Katie Porter for supporting the union-backed CEO tax.
O’LEARY BLASTS CALIFORNIA WEALTH TAX AS ‘BAD MANAGEMENT,’ CALLS ON RESIDENTS TO ‘HIRE’ NEW LEADERS
Policies such as the San Francisco CEO tax and a proposed wealth tax targeting billionaires have sparked pushback from California centrists. (Justin Sullivan/Getty Images)
He said it’s “really disappointing,” and it reflects the pressure that labor unions have put on the state’s elected officials. Larsen added that while the group isn’t anti-union, it aims to balance labor’s ability to influence elected officials.
Y Combinator CEO Garry Tan hosted the event after he launched “Garry’s List” last month to serve as a “citizen’s union” to support centrist candidates in California who are supportive of policies to improve the state’s schools and addressing issues related to housing and public safety.
Tan criticized Steyer, saying he’s attempting to “buy the governor’s mansion to raise your taxes,” and praised Mahan as the “next governor of California.”
TOP DEMS SANDERS AND REICH RAMP UP BILLIONAIRE TAX PUSH, SAY WEALTHY HAVE ‘ADDICTION’ TO GREED
The hotly contested Democratic primary to replace Gov. Gavin Newsom will be a flashpoint for the brewing battle between centrists and progressives. (Justin Sullivan/Getty Images)
The Post’s report noted that Garry’s List is focusing on voter education efforts through a blog Tan writes with the assistance of AI. Tan launched the site criticizing anti-growth policies, wealth taxes and a strike by San Francisco teachers.
Garry’s List is one of several groups that have been formed in an effort to stem the leftward lurch of California’s politics.
A group called Grow California was created by Larsen and Tim Draper, which will spend about $40 million to support “pragmatic” candidates focused on addressing issues like the cost of living.
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Another group called Building a Better California was launched by former Google CEO Eric Schmidt, venture capitalist Michael Moritz and other tech leaders. It has raised over $45 million to help advance initiatives to reform tax policy and spur development.
California
Southern California residents say HOA made them take down American flags
WASHINGTON (TNND) — Residents in a neighborhood in Southern California said that their homeowners association has threatened to fine them if they don’t take down the American flags displayed outside their homes.
Amy and Chris Cooke and their neighbor Terri Collins live in San Marcos, which is located in San Diego County.
They said that they could potentially face a $100 fine if they keep the flags displayed outside their homes, according to the Daily Wire.
“I’m not taking my flag down,” Collins said. “They can fine me, $100, $200, $1,000, I’m not paying it.”
Collins said that the neighborhood is very patriotic because it is located close to the former Miramar Navy Air Station.
She said that “all the Top Gun pilots lived here.”
The neighbors said that ever since President Donald Trump won the 2024 election, the HOA has enforced the rule about flags.
“Once the members allow use of a common property by an owner to express what is essentially a political or affiliative view in a flag, other owners will want to do the same and the common area will degrade,” a letter from the HOA reads.
Homeowners were told that flags displayed in “exclusive use” areas like backyards.
An HOA attorney told the Daily Wire HOAs “count on the fact that homeowners don’t know better and might be scared.”
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“I would tell these people to stand firm and under no circumstances should they remove that flag,” he told the outlet.
California
What you should know about the $351.7 billion state budget Newsom just signed
SACRAMENTO — Gov. Gavin Newsom on Monday signed his final state budget as governor, a $351.7-billion spending plan that seeks to uplift the poorest Californians through a tax system reliant on the stock market gains of the wealthy.
In a video message, Newsom extolled free school meals, universal transitional kindergarten, 130,000 subsidized childcare slots and other accomplishments in his tenure at the state Capitol, a period in state history marked by a dramatic expansion of state government and over $100 billion in increased spending.
“Over the past eight years, we built great things for the people of California — some of the boldest actions any government in this country has taken in a generation,” Newsom said. “And we did this without breaking the bank. We did this by design.”
The agreement ends weeks of lobbying by outside interests and negotiations among lawmakers and the governor at the state Capitol about how to handle a surge of income tax collected on stock market gains related to artificial intelligence.
Economists have warned that the revenue bump is potentially temporary and analysts say the growth in state spending could leave California in a challenging position if the economy declines.
Assemblymember David Tangipa (R-Fresno) agreed with Democrats that the budget is “compassionate.”
“My fear is that it’s not too much of a competent budget, and the budget continues a pattern that Californians know all too well: Spend now, justify it later, and hope somebody else pays the bill,” he said during a floor debate Monday.
Here’s what you need to know about the spending plan, which takes effect July 1.
Who decides the state budget?
The simplest answer is: Democrats. California voters have elected Democrats to represent 30 of the 40 seats in the Senate and 60 seats of the 80 seats in the Assembly. The budget was passed through a majority vote in each house of the Legislature and signed by Gov. Gavin Newsom, also a Democrat.
A more complex answer is that the budget is a product of dozens of legislative hearings, millions of dollars spent on lobbying by outside interests, talks among lawmakers and the governor and ultimately subject to the same political dynamics that rule the Democratic party.
Senate President Pro Tem Monique Limón (D-Goleta) and Assembly Speaker Robert Rivas (D-Hollister), in consultation with the chairs of the budget committees, represent their Democratic caucuses and reach a final agreement on the details of the spending plan with Newsom. In reality, staff members for the three parties handle most, if not all, of the back of forth negotiations to get there.
Union leaders seeking better pay, working conditions, benefits for workers and opportunities to expand their ranks are often brought in to consult or hammer out thorny deals as business groups try to fight off more regulations, taxes and costs, and support policies that increase their financial performance.
Democrats are spending more than ever before. How is that possible?
The Legislative Analyst’s Office, the nonpartisan fiscal advisor for lawmakers, recently examined the increase in state spending since 2019-20, Newsom’s first full year in office.
Between the budget approved that year and the spending proposal Newsom unveiled in January, spending from the state’s main operating fund had grown by over $100 billion, or 70%. That was largely by a 60% increase in revenue during that time. California typically operates with a spending deficit because Democrats spend more money than the state brings in.
The LAO found that the increase in spending stemmed from the growing cost of sustaining programs and services that were already in place when Newsom took office. About 30% of the remaining spending growth was categorized as new, either by newly created programs or the expansion of existing services.
Among the report’s conclusions: California could not afford the programs that predated Newsom and the ones he and the Legislature adopted.
To balance the budget over the last few years, Newsom and lawmakers have dipped into the state’s reserves at a time when California is experiencing strong revenue growth, which the LAO has cautioned against. Democrats have also increased taxes on businesses, paid for programs out of other funds and suspended reserve deposits among other solutions.
This year, the state budget places $6.4 billion in higher than expected revenue into a temporary holding account to knock down a deficit and balance the budget through 2027-28.
Democrats are pursuing a change to the state constitution on the November ballot that would allow them to set aside more money in years of good revenue growth to prevent cuts in future downturns.
Where is the money going?
Education and Medi-Cal are the two largest costs for the state.
Medi-Cal is the state’s version of subsidized health insurance for low-income Californians and provides medical, dental and vision care for an estimated 14.5 million people, or about one-third of the state population.
The federal government pays for more than half of the cost of the program. California is expected to spend about $50 billion from the general fund next year out of a total estimated at more than $220 billion in costs shared between the state and federal government, according to the LAO. State taxes and fees on providers also help fund Medi-Cal.
Overall, Medi-Cal costs more than any other state program and takes up about 40% of total spending, including federal funds the state receives, according to the LAO.
Spending on Medi-Cal has more than doubled over the last 10 years, which the LAO attributes to an increase in costs per enrollee, more enrollees and a greater share of seniors seeking care, among other factors.
Under Newsom, California has expanded Medi-Cal, including offering coverage to include all immigrants regardless of their immigration status, which the governor said has dropped the state’s uninsured rate down to 5.9%
The cost of Medi-Cal has grown beyond what Democrats expected and resulted in Newsom suggesting spending cuts.
The final budget agreement rejects a call by Newsom to lower the asset limit to $2,000 now and instead lowers it to $21,000 in 2027-28 to be eligible for Medi-Cal. The Legislature also delayed the governor’s proposal to reduce dental coverage and shift asylum seekers and other immigrants to restricted scope Medi-Cal, according to Jason Sisney, the lead budget advisor for the Assembly who posts about the budget on Substack.
The budget includes Newsom’s proposal to shift enrollees with unsatisfactory immigration status, a term that includes undocumented immigrants and others, from managed care to fee-for-service to save costs.
Under Proposition 98, approved by voters in 1988, California has a minimum funding guarantee for schools and community colleges and dedicates roughly 40% of general fund revenue to education.
Sisney said the budget increases the Local Control Funding Formula by $2.2 billion and provides historic general fund per pupil spending of $21,148. Support for special education also grew by $1.8 billion.
The California Community Schools Partnership Program received a $1-billion boost and Democrats directed $2.8 million in additional funding to the program that provides free meals for school children.
The budget also establishes 22,770 new slots for free or reduced childcare, which Newsom had proposed decreasing.
California
Suspected Northern California library shooter charged with murder, faces life in prison
OROVILLE — Bradley Scott Sayer was charged with two counts of first-degree murder and discharge of firearm with injury during his arraignment Thursday at the Butte County Superior Court.
Sayer, 18, is the suspect in the Chico library shooting on Monday in which two men were killed, and he could face life in prison. If convicted, Sayer is facing the highest penalty for capital murder with special circumstances, which would be life in prison without the possibility of parole. Butte County District Attorney Mike Ramsey, who is the prosecutor of the case, said the court is not seeking the death penalty.
Sayer was not given bail, as Ramsey said the court felt Sayer was “too dangerous.” Ramsey also said Sayer is on suicide watch in at the Butte County Jail.
“We felt that it would be too dangerous to let him go at this juncture,” Ramsey said. “He planned a mass shooting, and there’s no reason to believe that if he was let go, that he wouldn’t continue to do that.”
Sayer was staying at his father’s house, who was out of town, the day of the shooting, according to Ramsey. He then went to the closet in his father’s room and took two .22 caliber rifles and a 20-gauge shotgun, as well as several boxes of “No. 3 birdshot shells” before leaving for the library.
Sayer will appear in court next at 8:30 a.m. July 16 at the Butte County Superior Court, where he is expected to enter a plea. He is being represented by Roberto Marquez as retained counsel.
Autopsies
The Chico Police Department released a final update regarding the shooting case. The Butte County Sheriff’s Office completed the autopsies of both Jacob Cody Hull and Robert Johnson.
“The autopsies were completed; results indicate that both victims died as result of gunshot wounds. The wounds are consistent with a shotgun being used. The decedents will be turned over to their families who will be making funeral arrangements. The suspect remains in custody at the Butte County Jail being held in isolation,” Butte County Sheriff Kory Honea said.
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