Schwarzenegger’s take on Kevin McCarthy: ‘He’s still a winner’

California’s most prominent Republican called it quits this week, marking the end of an era for the man who crafted his entire political career around becoming House speaker, only to be tossed out in a historic vote after less than a year at the helm.

I’m talking about Rep. Kevin McCarthy of Bakersfield, of course.

McCarthy’s final fall was presaged by his rocky rise, coming to power as he did in January after 15 votes, and concessions that made him vulnerable to a small rebellious faction within the House Republican conference. Since he was ousted as speaker on Oct. 3, speculation has swirled over whether he would remain in Congress.

The answer became clear Wednesday when McCarthy announced his resignation in a Wall Street Journal op-ed, saying he plans “to serve America in new ways.�

McCarthy said he will step down by the end of the year, setting off the question of who will run to replace him in the heavily Republican congressional district that spans from Bakersfield to Fresno along the southern Sierra Nevada foothills.

McCarthy began his political career in Sacramento, serving two terms in the Assembly during the tumultuous period when voters recalled Democratic Gov. Gray Davis and replaced him with Republican Arnold Schwarzenegger. McCarthy rose to become the minority leader and worked closely with Schwarzenegger.

So when the former governor came to Sacramento last month to celebrate the 20th anniversary of winning the historic recall election, I asked him for his perspective on McCarthy’s epic rise and fall in Washington. Did McCarthy make a mistake along the way that led to his leadership being so tenuous and so brief?

Schwarzenegger answered by calling McCarthy “an old friend� and saying he was “just fantastic� to work with in Sacramento.

“And when he went to Washington, I was very proud of him. There was some things that he did that I would not approve of, and couldn’t approve of,� Schwarzenegger said.

Like what? I asked, remembering how critical Schwarzenegger was of President Trump and the politicians who supported him after the Jan. 6 insurrection.

“It doesn’t matter,� Schwarzenegger replied.

“But again, that doesn’t mean that we have to see things exactly the same way. We are two human beings. Even when you’re in the family, you see different opinions within your family. So it is just the way it is. But I always was a big supporter of his, and I will continue being a big supporter of Kevin. I think that one should not look at it kind of like in the short-sighted way and say he stumbled here, or he failed in this. I think that he’s a winner. So Kevin lost a battle but he’s still a winner because he gets up, he dusts himself off and he moves on.�

That was on Nov. 17. Three weeks later, McCarthy was doing just that.

I’m Laurel Rosenhall, The Times’ Sacramento bureau chief, here with your guide to the week’s news in California politics.

Changes coming to $25 minimum wage law for healthcare?

California’s budget situation is not looking good.

Tax revenues have come in far lower than expected, leaving the state with a projected deficit of $68 billion in the upcoming fiscal year, the state Legislative Analyst’s Office announced today. In raw dollars, it’s the largest deficit the state has ever faced.

“Mounting economic headwinds have pushed the state’s economy into a downturn,� the analyst wrote, citing a slowdown of home sales caused by rising mortgage rates; a reduction in the number of companies going public, leaving businesses with less funding to expand operations or hire new workers; and an increase in unemployment since last year.

But just as California has less money flowing in from taxpayers, the state is staring at a plan to begin spending some $4 billion more on wages for healthcare workers. That’s because Gov. Gavin Newsom signed a union-backed bill in October that requires gradually increasing pay for all workers in healthcare settings — including janitors, launderers and gift shop clerks — to $25 an hour. It’s the most expensive new law California has seen in years.

Now Newsom is seeking “major reforms� to pare it back in light of concerns about the state budget, he told Times reporter Mackenzie Mays last week. While the governor did not specify how the state might cut back, he said the coming changes were “all part of an understanding� with labor leaders before he signed the bill.

“We knew exactly where we are on the finances. We were very upfront with these guys,� Newsom said.

“I said ‘no way in hell,’ and we worked on something, and that will reveal itself in a matter of weeks.�

We’ve got more on this scoop in this article by Mays and Taryn Luna: As California deficit estimate hits $68B, Newsom seeks “major changes� to healthcare wage law

The name that was deleted from Biden’s L.A. fundraiser

President Biden is coming to Los Angeles on Friday for a pair of star-studded campaign fundraisers hosted by Hollywood big shots including directors Steven Spielberg and Rob Reiner, producers Shonda Rhimes and Peter Chernin and former studio chief Jim Gianopulos.

The original invitation for Friday’s fundraiser also included another name as co-host: Matthew Pritzker, a scion of the politically connected and wealthy family that started the Hyatt hotel chain. His cousin, Illinois Gov. J.B. Pritzker, is co-chair of Biden’s campaign.

But Matthew Pritzker’s name has been scrubbed from an updated invitation circulating among Hollywood donors this week. He was removed from invitations after he was accused of unwanted sexual acts and sued for $25 million, Times political reporter Benjamin Oreskes discovered.

In a lawsuit filed last month in New York Supreme Court, attorneys for “Jane Doe� allege that in 2009 “Pritzker engaged in sexual acts with Plaintiff without her consent, and while she was incapacitated and could not provide consent.�

Pritzker didn’t respond to repeated requests for comment. Read more here: A Pritzker heir was about to co-host a Biden fundraiser. Then he was accused of sexual misconduct

Keeping up with California politics

Skelton: Hardscrabble trailblazer Toni Atkins would be an intriguing candidate for California governor
Judging by her record of leadership in both houses of the state Legislature, San Diego Democrat Toni Atkins could be a productive governor, writes columnist George Skelton. She’d certainly enhance the field of choices for California voters.

Kevin McCarthy uses PAC to lavish cash on high-end resorts, private jets and fine dining
As he exits Congress, political obituaries tout McCarthy’s skills as a prolific fundraiser on behalf of Republican candidates. Also setting him apart from other congressional leaders was his roughly decade-long pattern of using his Majority Committee PAC to spend lavishly on hotels, private jets and fine dining establishments, according to a Times analysis of campaign finance records.

Kevin McCarthy isn’t the only Californian who is miserable in Congress
The past year has been marked by an almost unprecedented level of chaos, dysfunction, and near misses on self-inflicted national economic catastrophes in the GOP-controlled House, all bookended by two separate speakership crises. The disarray has led to a surge in retirements from both parties, with 31 House members leaving.

California cities tackle Israel-Hamas war: Taking a stand or inflaming divisions?
Local governments have been taking stands on global issues for decades. But given the intense debate over the war, the resolutions have heightened divisions in some communities and raised questions about what governments get out of them.

California will mandate electric school buses. But rural districts say they don’t work
In October, Gov. Gavin Newsom signed legislation requiring all newly purchased or leased school buses in California to be zero-emission starting in 2035. Rural school districts can have up to 10 additional years to fulfill the requirement, if they can prove the vehicles are impractical for their routes and terrain. But even that generous time frame is unworkable unless electric bus technology significantly improves, rural school leaders say.

Why some people think California’s cow manure methane plan stinks
Digesters — a technology that harvests methane gas from cow manure — are the cornerstone of California’s bid to reduce greenhouse gas emissions from its $7.5-billion dairy industry. But they are coming under increasing fire from critics, who say they spew lung-damaging pollution in local communities and seriously undermine the state’s net-zero carbon goals.

Editorial: CalPERS must ditch fossil fuel investments. Its new ‘sustainable’ plan doesn’t do that
The Times editorial board throws its support behind legislation to require California’s public employee pension funds to divest from fossil fuels.