Crypto and tech money lifts new Dems to CA Capitol
Happy Monday, California. We have new election results for you today, including good news if you wanted more business-friendly, centrist Democrats in the Capitol. Of course the progressive wing of the Democratic Party can celebrate Jane Kim’s election to state insurance commissioner.
The nation over the weekend continued to absorb Gov. Gavin Newsom’s commutation of death sentences, and our Ryan Sabalow connected with several victims’ families who felt blindsided by the decision.
Read on for more on those stories as well as to learn why El Niño has L.A. worried about an epic mosquito infestation. Eeeeeeeeeeeek!
While spending by billionaire Elon Musk and others to thwart a national Democratic blue wave failed, the very rich had more success in California to ensure that more moderate Democrats will take office in the state Legislature, writes CalMatters’ Kate Wolffe.
At least nine Silicon Valley-backed Democrats will be going to the Capitol after Big Tech companies and investors spent a total of at least $50 million on their races generally to the disadvantage of candidates who were perceived as further to the left. That includes Assemblymembers-elect Mark Pulido, Andrae Gonzalez and Annalisa Perea; and Sen.-elect Scott Sakakihara, a former executive for Palantir Technologies.
Grow California, an independent expenditure committee principally funded by cryptocurrency billionaire Chris Larsen and venture capitalist Tim Draper, spent $24 million backing moderate Democrats over more left-leaning Democrats. California Leads, funded mostly by Meta and Google, spent $17 million.
Together, the groups made up 30% of all independent expenditures on legislative races during a record year for political spending.
Though Grow California and California Leads say they are not advocating for any issues in particular, another super PAC funded by Meta, known as META California, explicitly supports tech-friendly candidates who are receptive to artificial intelligence.
In addition to the state’s legislative races, billionaires and business interests poured huge money into stopping Proposition 40, the proposed billionaire tax, which voters are poised to reject, as well as the passage of Prop. 42, which bans any new wealth tax and is on track to pass. Combined with money in support of another anti-tax proposition, the opponents spent $316 million to achieve their policy goals.
Meanwhile, proponents of tech regulation are raising alarm over the outpouring of new political spending by tech interests. Catherine Bracy, the chief executive of TechEquity Collaborative, said the spending underscores Silicon Valley’s increasing influence in California lawmaking.
Read more.
Other election updates: After more counting over the weekend, California voters officially rejected three more ballot measures: Prop. 41, which would have imposed limits to certain new state taxes; Prop. 43, which would have made it harder to pass citizen-driven local tax measures; and Prop. 45, which would have lifted some environmental review requirements for building homes.
Voters also elected Jane Kim as insurance commissioner and Democrats Sally J. Lieber and Tom Umberg to the State Board of Equalization.
