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THE Nooner for March 27, 2017

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Just another manic it Saturday yet? #FinalFour #QuackAttack

The embarassement in DC continues. Now, the tax reform plan seems dead. The plan was to use reconciliation for both health care and tax reform, with one using last year's budget resolution and this year's budget resolution (only one is allowed per budget year). But, there are increasing fears that the House Freedom Caucus won't adopt a budget resolution, as reconciliation procedures require that the conciliation bill be revenue neutral over the ten-year forecast.

With the details of President Trump's tax reform plan being leaked, that seems impossible. It significantly reduces marginal tax rates (from 39.6% to 33% on the highest earners) and corporate taxes, with the only "revenue raiser" being the elimination of the personal income tax deduction for state and local taxes.

Obamacare repeal was scored as $1 trillion in federal savings over the budget outlook, and it was going to pay for tax cuts. 

In other words, a tax reform plan will need to net $1 trillion in savings over the decade.

That's problematic for GOP members in California, New York, Illinois and other "blue states." It's a $70 billion revenue raiser, hitting lots of middle class voters. It's particularly galling to House Democratic Leader Nancy Pelosi, as San Francisco has the highest taxes in California (both sales and a local personal income tax). However, several deep south red states have even higher combined rates than the City by the Bay.

Speaking of the Bay, the Bay Area News Group editorializes, "Good riddance Raiders, it's time for us to move on," as the team plans to move to Vegas. Ouch for Brian Ha

Also in California, Devin Nunes's tenure as House Intelligence Committee chairman may be threatened as he failed to communicate to his committee that he went down Penn Ave. to the Old Exec Office Building to review classified documents relating to Trump's ties to Russia instead of holding a allowable closed-session hearing. Nunes is safe in his district, however, which is based in Tulare County. Although, the news story is good for Pasadena's Adam Schiff, the vice chair of the committee, who is getting attention as the adult in the room.

The Capitol's dean--George Skelton--writes that Nunes and Schiff couldn't be further apart -- and it's symbolic of the two Californias.

Meanwhile, the House has until April 6 to take actions before spring recess. 



In the Bee's AM Alert, Alexei Koseff reports that at 4pm today, Chief Justice Tani Cantil-Sakauye will give the annual State of the Judiciary address to a joint session of the Legislature. As Alexei notes, the topic of bail reform--a topic being carried by Senator Bob Hertzberg and Assemblymember Rob Bonta--will likely be a topic of her speech.

Also in the Bee, Dan Walters writes that Democrats in California have an uphill battle in the attempt to claim congressional seats currently held by Republicans. While 7 districts represented by the GOP were won by Hillary Clinton, PDI's Paul Mitchell tells Dan that Dem turnout will be much lower in 2018. As Dems know, that is no surprise, as Paul and I knew when we were community college students at Orange Coast. 

I missed this good piece over the weekend by the LAT's Chris Megerian, who looks at the conflict between California and the (202) over vehicle emission standards. Washington wants to roll them back, while California's majority party wants to push them forward.

In the OCR, Jonathan Lansner looks at the impact of retail closings/bankruptcies on cities. It's not pretty, but it was a chicken coming home to roost as the retail scene has shifted from on-property to online. 


This morning, Malia Cohen announced her campaign for the Board of Equalization seat being vacated by Fiona Ma, who is running for State Treasurer. Cohen is currently a member of the SF Board of Supervisors. (Great trivia. SF is the only city that is also a county, so you can call her a superviser or councilmember and not have a foul called.)

#CAKEDAY: Happy birthday to Luis Alejo, Mark Capitolo, Christopher Castillo, Leah Herzberg, Paul Hogarth, and Manuel Saucedo

DEPT OF CORRECTIONS: On Saturday I listed Doug LaMalfa as a vulnerable member of Congress. Of course, it should have been Jeff Denham.



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  • LOBBYING SUCCESS BEGINS HERE. [end bold] Capitol veteran Ray LeBov's Lobbying 101 and 201 seminars give you a comprehensive, real-world picture of lobbying in California -- the people, processes and best practices critical to your success. April 13-14, $275 each / $500 for both. Our last two seminar dates sold out, so we encourage you to book quickly. Lobbying 101 covers the Legislative process and Legislative advocacy. Lobbying 201 explores the equally critical areas of Budget Advocacy, Regulatory Agency Advocacy, Lobbying the Administration and Media Strategies. Essential for lobbying firm principals / staff, organizations / agencies that employ lobbyists, newcomers to the profession. Information / registration: or 916 442 5009.
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Failure On Health Bill Also Hurts Prospects For Tax Overhaul | The Sacramento Bee
House Republicans' failure to repeal Barack Obama's health care law deals a serious blow to another big part of President Donald Trump's agenda: tax reform.

Senate Democrats To Meet With Homeland Security Chief On Immigration - Politico
Democratic lawmakers have been furious over enforcement tactics coming from the Trump administration, which have included raids by Immigration and Customs Enforcement and detention of some young immigrants who have been granted work permits and deportation deferrals under an Obama-era initiative for so-called Dreamers.

Bay Area political events: climate change, sanctuary
Bay Area political events: climate change, sanctuary Political events Rallies and protest events are a part of political life in the Bay Area. Occupy Sonoma County asks, “Is Global Climate Disruption Happening to Us or for Us?” The event is free and will focus on how people affect climate change. Anti-Trump panel: A discussion with civil rights attorneys and activists on opposition to President Trump. 7 to 9 p.m. at the Center for Fair and Justice, 1305 University Ave. in Berkeley. Rally aimed at Feinstein: A call for Sen. Dianne Feinstein not to strike compromises with the Trump administration, from 11:30 a.m. to 1:30 p.m. It will begin outside the Montgomery Street BART Station, 598 Market St. in San Francisco, and end outside Feinstein’s office at 1 Post St. For more information: Panel talk on sanctuary cities, as well as stories of immigration challenges. Hosted by the Oakland Privacy Working Group to organize against “the surveillance state, against Urban Shield and to advocate for privacy and surveillance regulation ordinances to be passed around the Bay Area.” Women’s event: A happy hour and panel discussion featuring female entrepreneurs, Nevertheless, She Persisted: The Asian Pacific Islander Wellness Center will host a free community-wide event to commemorate Transgender Day of Visibility.

Rep. Poe Explains Why He Split From The House Freedom Caucus - Politico
The repeal-and-replace measure, labeled the American Health Care Act, was supported by House leadership and the administration of President Donald Trump but failed to muster enough support among rank-and-file Republicans to pass. House Speaker Paul Ryan and the president agreed Friday to cancel a scheduled vote on the legislation once it became clear that it would not have the votes.

Could 7 California's GOP Congressional Seats Be At Risk In 2018? | The Sacramento Bee
Dan Walters @
Observations on California and its politics

Senate Democrats Delay Committee Vote On Gorsuch Nomination - Politico
Sen. Dianne Feinstein raised concerns about the millions in outside money spent to bolster Neil Gorsuch in the campaign to get him confirmed. | AP Photo

Trump Moves To Roll Back Pollution Standards For Cars, Setting Up Conflict With California | The Sacramento Bee
Dale Kasler and Ryan Sabalow @
The go-to source for news on California policy and politics

Trump turns to tax reform after health-care defeat

After Republicans withdrew their health-care plan on March 24, President Trump announced he would shift focus to tax reform. "We will probably start going very very strongly for the big tax cuts and tax reform, that'll be next," he said.

Meet Indivisible, The Young Progressives Leading The Resistance To President Trump
Kurtis Lee @
Indivisible is a group of progressive activists who are showing up at Republican town halls across the country with the purpose of wreaking havoc. The group was started by a D.C. couple.

Police Remove Crime Tape From Quadruple-homicide Site | The Sacramento Bee
Nashelly Chavez, Darrell Smith and Tony Bizjak @
Covering crime, police and courts in the Sacramento region

Gallup: Trump Hits New Low After Health Care Flop - Politico
Only 36 percent of Americans approve of the way President Donald Trump is handling his job as president. | AP Photo

Some Lawmakers Now Look to Bipartisanship on Health Care
In the wake of the Republican failure to make good on the vow to repeal the Affordable Care Act, President Trump and congressional leaders find themselves at a crossroads.

California Governor Jerry Brown Blasts Trump's Border Wall | The Sacramento Bee
Christopher Cadelago @
The go-to source for news on California policy and politics

Facebook Pioneer Donates $75 Million To Ucsd For Data Science - The San Diego Union-tribune
The Halicioglu gift is the largest the university has ever received from one of its graduates, and it pushes the total raised during the current capital campaign to about $991 million. UC San Diego is roughly halfway through the 10-year campaign.

U.n. Ambassador Haley Opposes International Ban On Nukes - Politico
The United States will be among dozens of nations boycotting a United Nations General Assembly hearing on a nuclear weapons ban treaty, U.N. Ambassador Nikki Haley said Monday.

California School Districts Increased Spending On Administrator Pay Faster Than Teacher Pay | The Sacramento Bee
Phillip Reese @
By Phillip Reese

Grassley Requests Information From Firm Behind Trump Dossier - Politico
Senate Judiciary Chairman Chuck Grassley is requesting information about the relationship between the FBI and the opposition research firm behind an unsubstantiated dossier whose contents included salacious allegations against President Donald Trump and his campaign aides.

Senate Committee to Question Jared Kushner Over Meetings With Russians
The president’s son-in-law faces questions about meetings he arranged with the Russian ambassador, including a sit-down with the head of Russia’s state-owned development bank.

Watch: PAC runs 'thank you' ads for vote that never happened

Conservative PAC American Action Network released a series of ads thanking members of Congress for voting to replace the Affordable Care Act with the American Health Care Act, which did not occur.

Trump Handed Merkel ‘outrageous’ Nato Bill: Report – Politico
Former prime minister appears set to assume power again.