Politics
California Supreme Court to rule on high-stakes battle over ballot measure restricting tax increases
The battle between business and labor is headed for a high-stakes showdown at the California Supreme Court this week over a ballot measure that would tip the balance of power at the state Capitol.
The court on Wednesday will hear oral arguments on the legality of an initiative backed by business interests that strips the state Legislature and the governor of the ability to increase taxes and requires statewide voter approval.
In an effort to quash the measure, Gov. Gavin Newsom and legislative Democrats petitioned the Supreme Court last September to intervene. They argued that change revises the California Constitution and, therefore, can only be placed on the ballot if ratified during a Constitutional Convention or by winning a two-thirds vote in the Legislature.
The proposal has alarmed Democrats, unions and their liberal allies. The measure could limit state and local funding, hamstring the ability to generate new money for programs and make it more challenging for the governor and Legislature to offset a budget deficit in an economic crisis without slashing progressive policy priorities.
“They should be afraid because the people of California are fed up,” said Rob Lapsley, president of the California Business Roundtable, a proponent of the measure. “This gives the people of California the right to vote on future taxes, and voters are going to support it if it’s on the ballot.”
If approved by voters, the proposal would mark a historic win for the business community. Lapsley said establishing new checks and balances on taxation is essential to creating jobs and attracting companies to California.
Labor unions representing state workers, teachers, police and firefighters have joined forces with Democrats and dozens of other organizations to ask the high court to strike down the measure. They argue it would impair essential government functions and threaten services that rely on state dollars.
“I want to make it clear that the ‘Taxpayer Deception Act’ lets wealthy corporations, who can afford expensive campaigns, to block taxes on their industry while regular Californians, regular people, shoulder more of the cost of critical services,” said Tia Orr, executive director of Service Employees International Union California, which is leading the charge to defeat the measure on the ballot.
Officially dubbed the “Taxpayer Protection and Government Accountability Initiative,” the measure pushed by Lapsley’s group and the Howard Jarvis Taxpayers Assn. asks voters to require local governments to vote on all fee increases, which can now be approved administratively. The threshold to increase local special taxes would increase from a majority to a two-thirds vote of the people.
Fee increases at the state level, which are often approved by state agencies and boards, would need support from a majority of the state Legislature. The measure would expand the requirements necessary for a statewide tax increase, which currently can be done with a two-thirds vote of the Legislature. Under the ballot measure, support from a majority of California voters also would be required.
Taxes are often applied to the sale of goods, or income, for example, and pay for a variety of government expenses through the state general fund. A fee is typically collected and spent on a more specific service.
The measure expands the definition of taxes and restricts the potential use of fees to only cover the cost of the service, potentially prohibiting government from redirecting revenue to other purposes to close a budget deficit. The changes would take effect retroactively and reverse many local and state tax and fee increases approved since Jan. 1, 2022.
Carolyn Coleman, chief executive of the League of California Cities, said the new requirements for local ballot measures would effectively erase more than 100 measures that voters already approved with a majority vote. In Walnut Creek, for example, it would rescind a local public safety measure that voters approved with a 65% majority in 2022. The measure funded five new police officers, she said.
Opponents and supporters said that, if approved, the taxpayer ballot measure could rescind the “mansion tax,” also known as Measure ULA that took effect in Los Angeles last year. The measure applies a 4% charge on all property sales above $5 million and a 5.5% charge on sales above $10 million to fund housing and homelessness initiatives.
Lapsley argued that the mansion tax is “singularly the worst economic policy that you can possibly have in freezing the whole commercial, retail and residential real estate market in L.A.”
The luxury real estate market has slowed since the measure was adopted, but the charge has also raised about $215 million in funding in its first year.
Groups that have given money directly to Lapsley’s campaign, or funded other political action committees that contribute to the measure, include developers, landlords and real estate managers, among others with an interest in ending the mansion tax.
In addition to weighing whether the state ballot initiative constitutes a revision of the Constitution, the Supreme Court will consider the argument that it affects essential government functions.
Erin Mellon, a spokesperson for Newsom, said that in the event of a financial crisis the measure would require government to wait up to two years for the next ballot to raise taxes, “potentially putting lives and our economy at risk.”
“The governor is not a proponent of tax increases and has fought against propositions seeking to add new taxes, but the recession 15 years ago — and the current budget challenges facing our state — underscore the need for government to use every tool in the toolbox to respond to crises,” Mellon said in a statement. “The California Supreme Court should keep this radical effort led by wealthy business interests off the ballot because it violates the Constitution by attempting to completely restructure our system of government in a way that will prevent government from protecting Californians from future crises.”
The case elevates the ongoing fight between progressive labor unions and the business community from the halls of the state Capitol to California’s highest court.
Companies in California often complain that they can’t get a fair shake in a state Legislature dominated by Democrats and under the powerful political influence of labor unions. Business interests are increasingly turning to the statewide ballot to block and stall progressive laws from taking effect, or to push their own policy agenda directly to voters.
The proposed ballot measure could deal a blow to labor unions and other interest groups, who would find it more challenging and more expensive to convince voters to increase taxes to back their policy agenda than making their case just to legislators. Requiring lawmakers to pass bills to increase every new fee could also become a political challenge.
Lapsley and others said it’s rare for the Supreme Court to take up this type of pre-election challenge to a ballot measure. He said he feels that it’s fair for the court to consider the arguments, but he criticized Democrats for bringing the case.
“The fact that the Legislature and the governor are using taxpayer money to try and deny the voters of California, over 1.43 million who signed our petitions, the opportunity to have their voice heard is a direct violation of everything they talk about in terms of direct democracy,” Lapsley said. “They’re complete hypocrites when it comes to this case.”
Each side has 30 minutes to present an oral argument to the Supreme Court on Wednesday in San Francisco. The court is expected to release a ruling sometime before the June 27 deadline for measures to qualify for the ballot.
Politics
Trump and Iran Face Off in Iran War Negotiations
But while that is a new element in the talks, the cultural divide in how to negotiate is not.
That divide was evident 11 years ago, in the gilded halls of the 160-year-old Beau-Rivage Palace Hotel in Lausanne, Switzerland, where Secretary of State John Kerry and his counterparts from five other countries struggled to close a preliminary agreement with Iran. It was, perhaps, the closest analogue to what is unfolding now in Islamabad.
Every day the American delegation would speak about how many centrifuges had to be disassembled and how much uranium needed to be shipped out of country. Yet when Iranian officials — including Abbas Araghchi, now the Iranian foreign minister — stepped out of the elegant, chandeliered rooms to brief reporters, most of the questions about those details were waved away. The Iranians talked about preserving respect for their rights and Iran’s sovereignty.
“I remember we finally got the parameters agreed upon at the hotel,” Wendy Sherman, the chief U.S. negotiator at the time, said on Monday. “And then a few days later the supreme leader came out and said, ‘Actually, some very different terms were required.’”
Ms. Sherman, who went on to become deputy secretary of state in the Biden administration, would go into these negotiations with a large posse. She often had the C.I.A.’s top Iran expert in the room, or nearby. So was the energy secretary, Ernest Moniz, an expert in nuclear weapons design. Proposals floated by the Iranians would be sent back to the U.S. national laboratories, where weapons are designed and tested, for expert analysis of whether the agreements being discussed would keep Iran at least a year away from a bomb.
But Mr. Trump’s negotiating team travels light, with no entourage of experts and few briefings. Jared Kushner and Steve Witkoff, the president’s son-in-law and the special envoy, learned their negotiating skills in New York real estate and say a deal is a deal. They say they have immersed themselves in the details of the Iran program, and know it well.
Politics
Soros-linked dark money network fuels Virginia redistricting push backed by national Democrats
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Virginians for Fair Elections, a main group fighting to get Virginia voters to approve a ballot referendum that will allow the state to redraw its congressional maps, has been pumped with millions in cash from a web of George Soros-backed dark money groups and top Democratic Party officials.
The money the group has garnered ahead of Tuesday’s vote, which is poised to allow Democrats in the House of Representatives to potentially take four seats from Republicans going into the midterms, also comes from leading Democratic Party figures and organizations like Nancy Pelosi and the American Federation of Teachers (AFT).
Other left-wing juggernauts pumping money into the Democratic Party’s redistricting effort in Virginia include the Service Employees International Union (SEIU), Eric Holder’s National Democratic Redistricting Committee, which once championed the adoption of “independent redistricting commissions,” national green energy group the League of Conservation Voters, and the U.S. House of Representatives campaign arm for the Democratic Party, according to a Fox News Digital review of state campaign finance records and records from the Virginia Public Access Project (VPAP), which tracks public spending in Virginia.
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“Dark money is flooding into Virginia,” GOP strategist Matt Gorman told Fox News Digital. “Democrats talked all about the cost of living during the campaign, but all they did once in office was raise taxes and rig elections. It’ll be the same elsewhere across the country in 2026 too.”
A woman casts her vote at a polling place in Burke, Fairfax County, Virginia, in 2026. (Graeme Sloan/Bloomberg)
Fox News Digital reported in March that the left-wing group fighting to redraw Virginia’s maps raised more than $38 million, according to VPAP’s donation totals based on state campaign finance records. As of right before the mid-April referendum vote, just a handful of weeks later, that total ballooned to more than $64 million.
In 2026, the largest giver to Virginians for Fair Elections was House Majority Forward, the nonprofit counterpart of House Democrats’ House Majority PAC, which has donated over $38 million, records show.
Meanwhile, entities directly tied to Soros, or that obtained significant funding which can be traced back to the billionaire Democrat megadonor, come in second and third in terms of total giving to the group, per VPAP’s accounting of donation totals.
One of those groups, the Fund for Policy Reform Inc, was founded by Soros. The other, titled The Fairness Project, has been funded by groups like the Sixteen Thirty Fund, Hopewell Fund and the Tides Foundation, which Soros has given significant funding to.
George Soros pictured on the sidelines of the World Economic Forum in Davos, Switzerland, in January 2020. (Simon Dawson/Bloomberg via Getty Images)
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Another one of the top donors to the left’s Virginians for Fair Elections is American Opportunity Action, described as “a pure pass-through entity” by Parker Thayer, a dark money expert from the conservative Capital Research Center. The group is so new that it does not even appear to have any 990s filed with the IRS but is still one of Virginians for Fair Elections’ top donors, according to VPAP and state campaign finance records.
Top Democratic Party members of Congress from outside Virginia, including Reps. Nancy Pelosi, D-Calif., Pete Aguilar, D-Calif., and Katherine Clark, D-Mass., also donated tens-of-thousands of dollars, according to a review of state campaign finance records. Democratic Virginia Sen. Tim Kaine’s leadership PAC donated $100,000 as well, while the Democratic Party of Virginia put up just shy of a million dollars, per VPAP’s accounting.
Meanwhile, a group founded by Obama wingman Eric Holder, who previously championed “independent redistricting commissions,” provided a more than $10,000 in-kind contribution to the left-wing redistricting group, state election filings show. The League of Conservation Voters, and the Soros-backed MoveOn.org were also among Virginians for Fair Election’s top donors. In terms of labor union support, SEIU gave half-a-million, while AFT gave $100,000.
CBS HOST PRESSES FORMER AG ON DEFENDING PARTISAN REDISTRICTING EFFORTS IN VIRGINIA
Fox News Digital reached out to Soros’ Open Society Foundations and the other top donors pumping thousands or millions into the redistricting battle, but did not receive a response ahead of publication.
“No one wanted to take this action, but in a democracy, we can’t let entire states rig their congressional maps just to bend to the will of one person,” Alexis Magnan-Callaway, a spokesperson for The Fairness Project, told Fox News Digital in March.
“We have to respond. This amendment is a temporary, one-time exception that gives Virginia voters a voice and meets the needs of the current moment, while ensuring Virginia’s bipartisan redistricting process will resume after the 2030 census,” she continued. “This isn’t about favoring one party over another. This is about restoring fairness across the board by temporarily changing Virginia’s congressional districts.”
A main group in Virginia opposing the redistricting effort led by Democrats, Virginians For Fair Maps, raised a little over $3 million at the time of Fox News Digital’s late March report. However, the right-wing redistricting group in Virginia appears to have gained some ground since then as well, albeit still far behind the left’s Virginians for Fair Elections funding totals.
As of just before the referendum vote Tuesday, the anti-redistricting referendum group raised its fundraising total to nearly $20 million, with most of that money coming from a group by the same name that is also a significant donor to the Virginia Republican Party.
Other donations to the group come from a series of several much smaller donors, such as $50,000 from the National Shooting Sports Foundation and $100,000 from a wealthy D.C.-area real-estate investor, who donates primarily to GOP campaigns. That investor is the top individual donor at $100,000 out of just a handful of individual contributions, according to VPAP.
Virginia Gov. Glenn Youngkin speaks during the Faith & Freedom Coalition’s Road to Majority Policy Conference at the Washington Hilton on June 22, 2024 in Washington, DC. (Samuel Corum/Getty Images)
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Former Virginia Gov. Glenn Youngkin, a Republican, has reportedly given more than $500,000 in efforts against the redistricting measure, per reporting from the Virginia Scope. He also has been a leading voice in Virginia holding events to campaign against the measure despite no longer being in office.
Wealthy tech entrepreneur and Republican donor Peter Thiel has reportedly donated to Justice for Democracy PAC, which has been part of the anti-redistricting effort alongside Virginians for Fair Maps as well.
Politics
Governor’s race wildly unpredictable two weeks before Californians receive ballots
The most unpredictable California governor’s race in recent history took another set of dizzying turns on Monday, with former Health and Human Services Secretary Xavier Becerra surging after former Rep. Eric Swalwell dropped out in the face of sexual assault and misconduct allegations, and former state Controller Betty Yee ending her bid.
The race to replace termed-out Gov. Gavin Newsom is the first in a quarter of a century with no clear front-runner and a sprawling field of candidates who have been jockeying for the attention of Californians, who are just beginning to pay attention to the campaign two weeks before ballots arrive in their mailboxes.
“I certainly could not have imagined the twists and the disturbing turns that this race has taken,” Yee said as she announced she was dropping out. “But through it all, my values and my vision for California has never wavered.”
A poll released Monday by the state Democratic Party — its first since Swalwell (D-Dublin) dropped out — showed Becerra’s support jumped nine points to 13%, placing him in a tie with Tom Steyer, the billionaire hedge fund founder turned environmental warrior. Former Rep. Katie Porter of Orange County saw a slight bump to 10% from 7%, while the remaining Democrats in the contest were mired in the low single digits.
The party began the surveys out of concern that Democrats could be shut out of the governor’s race because of California’s unique primary system, where the top two vote-getters in the June 2 primary move on to the November general election regardless of political party.
“I continue to believe there are too many Democrats in the field,” California Democratic Party Chairman Rusty Hicks told reporters Monday. “My call for candidates to honestly assess the viability of their candidacy and campaigns still stands, especially if you are stalled in the single digits, seeing financial resources dry up and/or are failing to pick up additional support.”
Hicks and other party leaders and allies had unsuccessfully urged low-polling candidates to reconsider their candidacies before the filing deadline in an attempt to cull the field and avoid splintering the Democratic vote. Though most did not name candidates who they thought should think about their viability, Yee was widely believed to be among them.
Yee became emotional as she said on Monday that she decided to withdraw from the race because she wasn’t able to raise the resources necessary to compete in the state. She also said her message of competency and experience wasn’t resonating among voters who were seeking a fiery foil to President Trump, not “Boring Betty,” as she dubbed herself. Yee said she would assess the field before making an announcement on whether she would endorse one of her fellow Democrats.
Becerra was another candidate believed to be a target of party leaders’ efforts to shrink the field. But he held on and apparently benefited from Swalwell’s downfall.
“I’m not the richest candidate, I’m not the slickest candidate, but I am the guy that’s got you,” Becerra said, rallying supporters in Los Angeles on Saturday.
The audience was filled with members of labor groups backing the longtime politician, and Becerra told them he’d serve as a “union man” in the governor’s office.
Pro- and anti-Becerra forces tussled outside the town hall after two people, who declined to identify whom they were working for, passed out fliers highlighting critical media investigations of the U.S. Department of Health and Human Services during the migrant crisis when the agency was led by Becerra.
Pro-Becerra attendees grabbed the fliers and told the men to go away, prompting a security guard to intervene.
The question is whether Becerra, who also served as state attorney general, a member of Congress and a state Assembly member, can raise the funds necessary to compete in a state with some of the nation’s most expensive media markets. And he was tied in the state party poll with a billionaire who dumped an additional $12.1 million of his own money into his campaign last week.
Steyer’s total investment in his bid reached $133 million, according to the California secretary of state’s office. He also received the endorsement of Our Revolution, a progressive political organization founded by U.S. Sen. Bernie Sanders (I-Vt.).
“We’ve never endorsed a billionaire — but Tom Steyer is using his position to upset the system,” the group posted on X on Monday. “As Our Revolution executive director Joseph Geevarghese told @theintercept, ‘He’s been a partner in the movement. Most billionaires have used their wealth and privilege to lock in the status quo. Tom is doing the opposite.’”
San Jose Mayor Matt Mahan, who is also running for governor, accused Steyer of hypocrisy for the hedge fund he founded profiting from investments in private prisons being used to house ICE detainees, and Steyer calling for the abolishment of ICE.
Steyer got “rich investing off the ICE infrastructure he now wants to abolish,” Mahan posted on Instagram.
Steyer, who sold his stake in the hedge fund in 2012, has said he ordered the company to divest from the private prison company and has repeatedly expressed remorse about his former firm’s ties with the detention company.
Mahan also appeared Monday at a Hollywood production lot to announce his proposal for a special fund to lure sporting events, concerts and other productions to California as part of his plan to help the struggling film and television industry.
An independent effort supporting Mahan has also raised roughly $11 million since Swalwell left the race.
Mehta reported from Los Angeles and Nixon from Sacramento. Times staff writer Dakota Smith contributed to this report.
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