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BREAKING NEWS

California is Collapsing Because of Corruption — CA Facing Budget Crisis

WHAT YOU NEED TO KNOW:

• California's Medi-Cal program is facing a $6.2 billion budget shortfall, surpassing previous projections.

• This deficit arises from higher-than-expected enrollment, notably among immigrants without legal status, and escalating pharmacy costs.

• To address this, the state borrowed $3.4 billion from its general fund and is seeking an additional $2.8 billion to ensure timely payments to healthcare providers.

• Governor Gavin Newsom and Democratic leaders remain committed to maintaining coverage expansions, while Republican lawmakers criticize the financial strain these expansions impose.

• The situation is further complicated by potential federal Medicaid cuts, which could exacerbate California's healthcare funding challenges. ​

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LA Facing $1B Budget Hole — Staffing Cuts Coming

WHAT YOU NEED TO KNOW:

• ​Los Angeles is confronting a nearly $1 billion budget deficit for the upcoming fiscal year, prompting Mayor Karen Bass to direct city officials to identify structural budgetary savings between $500 million and $900 million.

• This financial strain is attributed to factors such as rising liability costs, generous labor contracts, and expenses related to the Palisades Fire.

• City Administrative Officer Matt Szabo has indicated that addressing this deficit may necessitate significant layoffs, potentially affecting thousands of city employees, given that approximately 80% of the city's expenditures are related to labor.

• The economic outlook is further complicated by declining general fund revenues and broader economic uncertainties.

• Mayor Bass is expected to release her detailed budget proposal on April 21, outlining strategies to navigate these fiscal challenges while aiming to protect essential city services. ​

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Homeless in California Starting More Fires

Corrin Rankin Elected Chairwoman of California Republican Party

WHAT YOU NEED TO KNOW:

• Corrin Rankin has been elected as the new chairwoman of the California Republican Party, marking the first time a Black woman has held this position.

• Rankin, a former surrogate for President Donald Trump, emphasizes a return to "timeless Republican principles" such as freedom, opportunity, and accountability.

• She aims to end the Democrats' one-party rule in California by expanding outreach into traditionally Democratic areas like San Francisco and Los Angeles.

• Rankin advocates for a merit-based system and plans to unify the party by empowering county committees, grassroots leaders, and volunteers.

• Her leadership reflects the party's efforts to diversify its ranks while maintaining conservative values. ​

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Newsom sends prepaid phones, aka ‘burners,’ to tech CEOs

WHAT YOU NEED TO KNOW:

• In an effort to “strengthen ties with California's business community”, Governor Gavin Newsom has sent prepaid cell phones—commonly referred to as "burner phones"—to approximately 100 CEOs of companies headquartered in the state.

• Each phone was accompanied by a personal note from Newsom, encouraging the recipients to contact him directly if needed.

• This initiative, funded by the California Protocol Foundation and surplus inauguration funds, aims to maintain California's competitive edge by fostering open communication with business leaders.

• Despite Newsom's existing reputation for direct communication with industry figures, this move underscores his commitment to engaging with the private sector.

• The approach has already led to several valuable interactions between the governor and business executives. ​

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• A new book titled "Fool's Gold: The Radicals, Con Artists, and Traitors Who Killed the California Dream and Now Threaten Us All" scrutinizes California Governor Gavin Newsom's connections with Chinese entities linked to the Chinese Communist Party (CCP).

• The authors, Jedd McFatter and Susan Crabtree, detail Newsom's establishment of ChinaSF, a public-private partnership aimed at attracting Chinese businesses to San Francisco, which allegedly facilitated the entry of corrupt CCP-aligned corporations into the state.

• The book highlights instances such as the recruitment of Suntech, a Chinese solar company, and the involvement of Chinese real estate firms, including Z&L Properties, whose owner was later convicted of bribery.

• Additionally, concerns are raised about the influx of Chinese biotech companies with minimal vetting, notably JOINN Laboratories, which reportedly has ties to China's military.

• The book suggests that these associations have compromised California's economic and national security interests. ​

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How a Real Estate Boom Drove Political Corruption in Los Angeles

WHAT YOU NEED TO KNOW:

• Corrupt Democrat LA Councilmember Jose Huizar took bribes and ended up in jail.

• Councilmember Mark Ridley-Thomas was found guilty of bribery and fraud last year; the other, Mitchell Englander, pleaded guilty in 2020 to a charge of making false statements in connection with a corruption investigation.

• Councilmember Curren Price is facing charges of embezzlement, perjury, and conflict of interest.