Video: A Conversation with Congressman Kevin McCarthy

As part of our Speaker Series on California’s Future, PPIC is inviting elected leaders across the political spectrum to participate in public conversations. The purpose is to give Californians a better understanding of how our leaders are addressing the challenges facing our state.

House Majority Leader Kevin McCarthy and PPIC president Mark Baldassare had a wide-ranging conversation in Sacramento last week. They focused on the relationship between California and the federal government in several areas, including tax reform, immigration, health care, water policy, wildfire management, and fuel emissions standards.

When asked about the impact of the recently passed federal tax law on Californians, he emphasized the bigger economic picture. The focus, he said, should be on the overall Republican agenda and whether it inspires optimism about the future: “Do you feel better off? How many quarters of economic growth have you had?”

McCarthy criticized the state’s leadership for its “backwards thinking” on the gas tax and other issues, and its oppositional stance to the Trump administration. He also talked about the need for bipartisan compromise in Congress. “I try to work with everybody,” he said, citing the work he did with Senator Feinstein to pass “the first major piece of water legislation in quite some time.” He returned to this theme after the conversation was briefly interrupted by a pro-DACA demonstration, asking why we can’t “sit down and communicate with one another” and decrying “elected officials who stand up and say ‘Divide us, not unite us’.”

Nonetheless, he seemed confident about finding ways to address major issues. About immigration policy, he said “I think we’re going to solve this problem” in the next congressional session. Asked about the 2020 Census, he said that Congress is making sure there will be an accurate count. “It is a big job,” he added, “and this is always the big fear before a census—are we prepared for it?”

Finally, when asked why he wants to become Speaker of the House, he said, “I want to make sure a Republican can be Speaker,” so that the party can continue to enact its agenda. He went on to describe the electoral landscape leading up to the November midterms, offering up a key takeaway: “This will be the year of the woman.”

Voters Favor New Water Bond. What Are They Missing?

One of the most surprising findings in the July PPIC survey is the strong support for an $8.9 billion state water bond among California likely voters (58%). Support for the bond―Proposition 3 on the November ballot―comes close on the heels of California voters passing a $4.1 billion state water and parks bond in June. What’s going on?

Majorities of California likely voters across partisan and demographic groups and the state’s regions say that water supply is a big problem in their part of California. Water supply and drought were the number one environmental problem named by likely voters in the survey (24%). Since Governor Brown took office in 2011, water supply and drought have been among the top environmental issues named by likely voters, and since 2014, together they have been named the most important environmental issue facing the state.

Majorities of likely voters across demographic groups and regions―including most Democrats (72%), nearly half of independents (48%), and four in ten Republicans (43%) and self-described conservatives (46%)―support Proposition 3.

PPIC surveys in the past five years show that support for state water bonds has remained high since the severe drought of 2012–16; voters are anxious about its return in light of other signs of climate change. Since 2014, at least half of California likely voters have said they would vote yes on various state water bonds. Moreover, an earlier PPIC survey found that most likely voters prefer bonds (44%) over fees (25%) and taxes (13%) as the means to fund water infrastructure projects.

What are the voters missing?

State bonds are important, but they actually play a relatively minor role in funding California’s water. Bonds provide at most $1 billion of the more than $30 billion in annual water-related spending. Local revenue—from water and sewer bills to taxes—provides the lion’s share. In addition, bonds are not a reliable long-term funding source, and they generally don’t cover operating and maintenance costs. State bonds don’t directly raise fees or taxes—which may make them more popular with voters than these alternatives. But they are not free. Every year bonds are repaid with significant interest from the state General Fund, which can reduce funding available for other important budget areas, such as education and health and human services.

California faces critical water funding gaps—totaling about $2–$3 billion annually—across several essential areas: safe drinking water in small, disadvantaged communities; flood protection; control of stormwater and other polluted runoff; and management of freshwater ecosystems and headwater forests. Limited financial capacity of low-income communities, legal constraints on local funding, a shrinking federal contribution, and unreliable state support contribute to the shortfall. There have been efforts to fill the gaps in other ways—especially for safe drinking water—but new sources of funding such as a surcharge on water bills haven’t enjoyed the same broad support as state bonds.

In California’s $2.7 trillion economy, filling the gaps for water’s “fiscal orphans” should be manageable. But this will require a focused effort and leadership at all levels. Bonds can help, but they can’t do it alone. Looking beyond bonds to find more durable ways to pay for essential water services—including with new fees and taxes―must be a top priority going forward.

Environmental Priorities and the Midterm Election

Just three months ahead of a consequential midterm election, California and the federal government continue to move in very different directions on environmental policy. Last week, the Trump administration’s efforts to roll back strict automobile emission standards were strongly criticized by the Brown administration. State officials have also pushed back on federal efforts to increase offshore oil drilling and the president’s decision to exit the Paris Agreement on climate change. Meanwhile, personal experiences with a prolonged drought and recent severe wildfires are raising Californians’ awareness about the impacts of climate change. Where do California voters stand on environmental issues and what are the implications for November?

Californians’ support for environmental protection runs deep. Consider emissions standards. In the July PPIC survey, 60% of California registered voters say that they are in favor of setting higher emissions standards for automobiles. Majorities of voters across age, education, gender, income, and racial/ethnic groups support this environmental policy. Majorities of Democrats (74%) and independents (62%) and 34% of Republicans are in favor. Notably, 52% of registered voters living in the nine competitive House districts—as rated by the Cook Political Report—favor higher auto emission standards.

Or take another area of state-federal policy conflict over the environment, offshore oil drilling. Sixty-six percent of California registered voters are opposed to more drilling off the California coast. Opposition is high among Democrats (82%) and independents (66%), and reaches 40% among Republicans. Majorities oppose it in both the coastal and inland regions of the state and across age, education, gender, income, and racial/ethnic groups. As for the registered voters living in the nine competitive House districts, 56% are opposed to allowing more offshore drilling off the California coast.

These views on particular environmental policy issues are similar to larger concerns related to global warming. About two in three California registered voters believe that global warming has already begun (67%), say that they are very concerned about its possible impact on more severe wildfires (64%), and favor the state law that requires California to reduce its greenhouse gas emissions (67%). Majorities of Democrats and independents share these views, along with substantial proportions of Republicans and majorities of voters across regions and age, education, gender, income, and racial/ethnic groups. In the nine competitive House districts, majorities of registered voters believe that global warming has already begun (59%), say they are very concerned about the impact of global warming on more severe wildfires (56%), and favor the state law that requires greenhouse gas emission reductions (62%).

Personal views about global warming could shape the size and profile of the electorate this year. Majorities of California voters say that the issue of global warming is extremely or very important to them personally (62%). If this high level of personal concern motivates voter turnout, it will provide a partisan advantage (80% Democrats, 61% independents, 29% Republicans). It could also serve as a catalyst in several Democratic-leaning groups with a low propensity to vote (64% under age 35; 68% earning less than $40,000; 69% renters; 70% Latinos). Moreover, in the nine competitive House districts, majorities of registered voters (55%) say that global warming is extremely or very important to them personally.

In the midterm election context, Californians are indicating strong opinions on environmental matters. A record-high number of registered voters say that the gubernatorial candidates’ positions on the environment are very important in determining their vote (39% 2002, 46% 2006, 42% 2010, 40% 2014, 53% 2018).

California voters say that they want statewide candidates to push back rather than work with the Trump administration on environmental issues (53% to 40%), and a majority disapprove of the way that President Trump is handling environmental issues (67%). Since the midterm elections are in part a referendum on the president, it is perhaps most significant that a majority of registered voters living in the nine competitive House districts disapprove of President Trump’s handling of environmental issues (60%)—similar to their disapproval of his overall job performance (58%).

Californians’ environmental priorities are high on our list of political wildcards in this important midterm election. Stay tuned as the PPIC Statewide Survey monitors this trend and other topics in our pre-election polling.

Video: Californians and the Environment

With the November election less than four months away, Democrat Gavin Newsom leads Republican John Cox by 24 points in the governor’s race—and nearly all likely voters see the candidates’ positions on environmental issues as important. In the US Senate race, Dianne Feinstein continues to lead fellow Democrat Kevin de León by double digits. These and other key findings in the July PPIC Statewide Survey were presented by researcher Alyssa Dykman at a Sacramento briefing last week.

Californians are much more likely than adults nationwide to say that global warming is extremely or very important to them personally. A majority of likely voters see global warming as a very serious threat to California’s economy and quality of life, and a solid majority say that the effects of global warming have already begun. This may help explain why most Californians are in favor of the state making its own policies to address climate change.

Other survey highlights:

  • Approval ratings for the president and Congress—both overall and on environmental issues—remain far lower than those for the governor and state legislature.
  • There are wide partisan differences in views on climate change and what the state should do about it.
  • Likely voters see drought and water supply as the top environmental issue facing the state; a majority support a water bond on the November ballot.
  • A majority of likely voters favor higher emissions standards for automobiles as well as state laws that aim to reduce greenhouse gas emissions in other areas.

Primary Takeaways: Democracy Is Alive and Well in California

With the release of the official Statement of the Vote, the final tally is in for the 2018 California primary. The election outcomes are encouraging news for California’s democracy—especially in light of criticisms of the top-two primary system by the national media. Several important statewide trends stand out:

  • Strong political participation. A record-setting 19 million Californians—75.7% of eligible adults—were registered to vote in the gubernatorial primary. This threshold has not been reached since the middle of the 20th century. Moreover, the 7.14 million voters who cast ballots is an all-time high for a gubernatorial primary and, at 37.5% of registered voters and 28.4% of eligible adults, the turnout rates are the highest reported in the five gubernatorial primaries since 2000. Since his election four years ago, California Secretary of State Alex Padilla has been on a mission to make it easier for Californians to register to vote and cast ballots, and the efforts seem to be working. The May PPIC survey found that likely voters’ attention to election news was relatively high, so credit also goes to the media for stoking interest in political participation.

  • More independent voters. Many Californians are responding to the hyper-partisanship of national politics by eschewing the major parties and registering as independents (also known as NPP for “No Party Preference”). In June’s election, for the first time in the state’s history, NPP voters outnumbered Republican voters (25.5% to 25.1%). In the past four years, the number of NPP voters increased (+1,103,602) more than the number of Democratic voters (+745,598), while Republican ranks shrunk (-267,311). The makeup of the June ballot reflected the political clout of NPP voters. Four of the statewide races included NPP candidates, giving voters some nonpartisan choices they did not have under the previous primary system. And in a first for the general election, the top two candidates for insurance commissioner are a Democrat and an NPP candidate (formerly a member of the Republican Party).
  • Diverse statewide candidates. After much consternation about the likelihood of a single-party race at the top of the ticket, five of the eight partisan races—including the governor’s—feature a Democrat running against a Republican. Except for the governor’s race, the top-two primary results offer a diverse pool of candidates to choose from in the fall, at least among Democratic options. The US Senate election and the seven down-ticket races include five Latinos, four women, two Asian Americans, and one African American. Also, eight of the nine statewide races—including the governor’s—are contests between Northern and Southern Californians. While many Republicans are likely to skip voting in a US Senate race with two Democratic candidates, as they did in November 2016, a Democratic-only race for the open lieutenant governor seat will be closely watched for signs of cross-party voting.
  • Popular state ballot measures. Four of the five state propositions placed on the June primary ballot by the legislature passed. This is consistent with the historically high pass rate for legislative ballot measures. With the legislature’s approval holding steady and at a relatively high level in the May PPIC survey, the four state propositions each passed by healthy margins—including a 58% “yes” vote for the state water and parks bond. The latter results bode well for the state housing bonds passed by the legislature and placed on the November ballot. (Citizens’ initiatives appear only on the November general ballot.)

The main takeaway from the June primary is that the vital signs of California’s democracy are healthy. In the wake of California’s many election reforms, records may be shattered in the numbers of registered voters and ballots cast this fall—and throughout the 2020s. The top-two primary system may have its quirks, but it is well suited for the burgeoning number of NPP voters. NPP candidates have found a home in the top-two primary, an NPP will be on the fall ballot, and there will likely be NPP statewide officeholders in the future. The fears about major party voters feeling left out of the fall election were overblown, and most top two candidates reflect the state’s diversity. Positive responses to the June ballot measures suggest an easy time for the state propositions from the legislature this fall; the fate of the nine citizens’ initiatives—including a repeal of the recent gas tax increase—is currently less clear.

At PPIC, the race for governor, US senator, and superintendent of public instruction stand out as uniquely worthy of public attention. We have invited the two candidates in each race to participate in conversations with me about the future of California. Stay tuned for more information about these public events. Meanwhile, throughout the fall the PPIC Statewide Survey will focus on the governor’s race, the US Senate election, and the congressional races—as well as the gas tax repeal and other state propositions that impact our future. We look forward to informing discussions and raising awareness about the importance of this consequential election for the state and nation.

Funding Measures and the June Ballot

Last week’s primary election garnered considerable statewide and national attention, with much of the focus on the governor’s race and contested congressional seats. Further down the ballot, however, voters were asked to decide on millions of dollars of local tax, bond, and fee initiatives. On the whole, these measures enjoyed considerable success across the state.

We found that Californians voted on 107 local tax, bond, and fee measures, representing the range of fiscal tools that local jurisdictions can use to raise revenue and borrow funds. Bond measures were the most popular, with 42 different local governments seeking voter approval (37 K–12 school districts; 2 community college districts; 3 cities). There were also 32 parcel tax measures; those related to K–12 schools (12) and fire/public safety (10) were most common. Ballots also included proposals to impose or increase taxes on cannabis (13) general sales (9), gross business receipts (2), and hotel stays (3). And there were proposals to raise utility fees (3), business license fees (1), and bridge tolls (1).

Most of the long list of funding proposals passed—but just putting a measure on the ballot did not guarantee success. Although counties are still counting some ballots, which could affect a race or two, at this time, we observe the following:

  • Overall, voters passed 76 of the 107 measures.
  • Of the 39 school bond measures, 30 passed. Proposition 39, passed in 2000, lowered the threshold for passing school bonds from a two-thirds majority to 55%. Had these measures been subjected to the previous standard, only 11 would have passed. The 19 measures approved under the current standard increased borrowing for investment in public schools by $1.8 billion.
  • On the heels of one of the states’ worst seasons of wildfires on record, California voters held the line on parcel taxes intended to support fire protection, with only 3 of the 9 measures passing.
  • All 13 of the cannabis tax proposals passed overwhelmingly.

California touched off a revolt against taxes 40 years ago. Primary voters in 2018 generally voted for increases but were relatively discriminating in their support, depending upon the type of tax and its intended purpose. This discernment comes at a time when the state’s economy is growing and unemployment is low. It will be interesting to see what happens in November, when we expect to see even more funding measures on the ballot.

Will California’s Red Districts Turn Blue in November?

One of the important questions hanging over California politics this election cycle is the impact of Donald Trump. In the 2016 presidential race, support for Trump was soft, with some parts of the state voting Democratic for the first time in more than a generation.

This shift encouraged Democrats to target congressional seats that had previously been considered out of reach for the party. The seven Republican-held US House seats considered most competitive all voted for Clinton over Trump. Yet many of these places haven’t voted Democratic for higher office in decades. Is this Democratic optimism warranted, or was 2016 a fluke?

Tuesday’s primary can help answer this question. California’s top-two system—in place since 2012—offers a view into the partisan sentiment in these districts in a year when Donald Trump is not on the ballot. It’s more like a first-stage general election because it lets voters choose any candidate they like regardless of party.

The figure below compares the share of the two-party primary vote for Democratic candidates to the 2016 two-party presidential vote in the same district (primaries without at least one candidate from each major party have been omitted). Each point is a state legislative or US House seat. The more the points cluster in the shape of a line, the stronger the correlation between the two votes. But any point above the line has a 2018 primary vote that is more Democratic than its 2016 presidential vote, while any point below is more Republican.

This figure tells us two things. First, the 2016 presidential vote predicts the 2018 results quite well. As the Democratic presidential vote increases, the Democratic primary vote in 2018 climbs as well. Moreover, the slippage in this relationship (and there is some) is about as large as in previous top-two years.

Second, the Democrats underperformed Clinton’s 2016 vote in almost every district. This too is consistent with the past. Democrats have underperformed the presidential vote in every primary under the top-two system. In fact, the underperformance was actually a little smaller this year than the average. This suggests it’s normal for Democrats to look bad in the primary season, and that it’s no reason for Democrats to be worried or Republicans to be excited.

However, this tells us less about the fall outcome than it might appear. The party vote in the general election usually shifts Democratic, but the magnitude of this shift varies a great deal. It was quite large in 2012: a seat with a 50 percent Democratic outcome in the primary on average voted 56 percent Democratic in the general. But in 2014 there was almost no change at all, and in 2016 the fall outcome was slightly more Republican.

Thus, for Democrats these results are a mixed bag. On the one hand, there are signs that the Trump effect in California has staying power. On the other hand, the consequences for this fall’s election are not altogether clear. The Democrats probably won’t do much worse on average than they did on Tuesday. But beyond that it’s difficult to say, and the consequences for individual seats will have to wait until Election Day.

A Preview of the California Governor’s Election

The people have spoken and the November election for governor has been decided: Democrat Gavin Newsom will face off against Republican John Cox. Let’s look at recent PPIC surveys to help us understand the determining factors of this outcome and the political dynamics that will surface in this fall’s matchup.

In the weeks before the June primary, the May PPIC survey found that Newsom was his party’s favorite in a race with the four major Democratic contenders, while Cox was his party’s top choice in a contest between the two major Republican contenders. The election results confirmed these trends in the voting patterns of red and blue counties. What is it about these candidates that was attractive to their bases?

The primary results were foreshadowed in a January PPIC survey. When likely voters were asked about the qualifications that they are looking for in a candidate for governor, most Democrats (84%) said they wanted a candidate with experience in office, while most Republicans (65%) preferred a candidate with experience running a business. The party faithful chose the person who arguably fit their profile best—Lieutenant Governor Newsom and businessman Cox. While California likely voters favor elected experience to business experience by a wide margin (62% to 31%), the fall election will focus on issues where opinions are more divided. This suggests a more competitive race than one might expect in deep blue California.

The November gubernatorial election is set in a midterm-election context perceived as a referendum on President Donald Trump and the Republican-led Congress. John Cox is endorsed by President Trump while Gavin Newsom is a vocal member of the Trump resistance. Democrats hope to flip several of the House seats held by California Republicans so that their party can take control of Congress. This election comes at a time when independents are now the second largest voter group at 4.9 million (SOS, June 1).

Slim majorities of California likely voters also say they would vote for the Democratic candidate over the Republican candidate in their House district races in both the March PPIC survey (53% to 39%) and in the May PPIC survey (52% to 38%). Democrats strongly preferred the Democratic candidate (92% March, 91% May) and Republicans strongly favored the Republican candidate (87% March, 86% May) while, again, independents are divided (Democrats: 37% March, 43% May). The independents’ turnout and leanings will thus be a focal point in House races—another reason this voter group is the wildcard in November.

What else will Californians need to know about the two candidates? In the PPIC January survey, 60% of likely voters rank the candidates’ stands on the issues above several traits: experience (17%), character (16%), and political party (6%). Likely voters most often name the economy, immigration, and housing costs as their top issues in the May PPIC survey. Eighty-two percent of likely voters say that the candidates’ performances in public debates will be important in determining their vote for governor.

PPIC has invited the two gubernatorial candidates to participate in a public conversation with me about the issues, their leadership, and vision for California. Stay tuned for more information about when and where it will take place, and how you can attend or watch this special PPIC event.

Commentary: California’s Top-Two Primary, Explained

This commentary was published in the Washington Post on June 6, 2018.

The California governor’s race and all its key House races will feature a Democrat against a Republican in the fall campaign. What would normally be an unremarkable statement counts as breaking news for California.

Read the full commentary on washingtonpost.com.

Single-Payer Health Care and the Governor’s Race

One issue that may prove decisive for Democrats in the 2018 governor’s race is single-payer health care. With the leading Democratic candidates supporting a single-payer system—and the leading Republican candidates in opposition—the race has shed light on the financial, political, and regulatory challenges associated with expanding health coverage across the state.

Last year, the state senate passed a bill (SB 562) that would establish a single-payer health insurance program to cover all Californians. However, the bill was shelved in the state assembly until further notice. According to estimates by the nonpartisan Legislative Analyst’s Office, the bill’s total annual costs would be about $400 billion. Democratic gubernatorial candidates Gavin Newsom and Delaine Eastin have been the most vocal proponents of single-payer health care and have publicly backed the bill. Democratic candidates Antonio Villaraigosa and John Chiang, while supportive of the idea, have expressed concerns over financing and implementation. Both the leading Republican candidates, John Cox and Travis Allen, strongly oppose single-payer health care and have emphasized the need for more competition in the marketplace.

With candidates’ differing positions, how are Californians feeling about single-payer health care today?

The May PPIC Statewide Survey found a majority of California’s likely voters (53%) favor a single-payer state plan. However, if this plan requires raising taxes, support declines to 41%. Across parties, an overwhelming majority of Democratic likely voters (77%) are in favor, while an overwhelming majority of Republicans (74%) are opposed; independent likely voters are divided (46% favor, 46% oppose). Notably, 66% of Democratic likely voters would favor a single-payer system—even if it means higher taxes.

The issue has become a litmus test for Democrats—pitting progressives against pragmatists—but, overall, Democrats express strong support for a single-payer system. Among likely voters who call themselves strong Democrats, 81% are in favor, compared to 69% who say they are not very strong Democrats. Among likely voters who call themselves strong Republicans, 83% are opposed to a single-payer system (the sample size for those calling themselves not very strong Republicans is too small for analysis).

Given partisan divides, the next governor may face significant political hurdles moving forward with single-payer health care. Coupled with statewide challenges, California would need to collaborate with the federal government to implement such a system. In consideration of these factors, the June primary is an opportunity for Californians to determine their future leadership and the state’s policy directions—including a possible step toward single-payer coverage.