BizFed Post-Election Highlights - Potential Impact on Business *** Denotes Identified for BizFed Outreach State Office Elected Implications • Has focused on need to heavily invest in green jobs/green economy; likely to continue to see strong environmental tilt. • Likely push to increase mandate on utilities to procure more alternative energy such as solar and wind. • Has said CA infrastructure – incl. new water conveyance - must be upgraded; wants to revive construction industry. Governor*** Jerry Brown (53.8%) • Won’t be predictable in approach to CA’s economic, budget and fiscal problems. • Has indicated reductions in state programs necessary to balance budget - taxes would need to be approved by the public. • Previous governing would indicate cabinet secretaries, commissioners and other appointeds will have broad authority to implement, while Gov sets priorities and develops major initiatives. • Has said he will focus on the emerging green economy and environment to get CA economy back on track. • Has said he will use his seat on Board of Regents to ensure tuition costs at CA universities are limited. Lt Gov. *** Gavin Newsom (50.2%) • Can wield power through his roles at UC Board of Regents, CSU Board of Trustees, Ocean Protection Council, California Emergency Council, State Lands Commission. • In charge of Commission for Economic Development in California. • As Mayor of SF, took very bold action on health care, environmental regulation and social issues • Understands power the office can wield over laws that affect business and the economy. Attorney • Title and summary for ballot initiatives will be much more business friendly than previous General - Still administrations. Steve Cooley too close to • He will likely take more aggressive positions on traditional law enforcement matters. call • Will run the office more like a prosecutor • Continue to see a liberal tilt to the Attorney General’s office. • Will use her power to protect environmental issues. • Title and summary for ballot initiatives will be less business friendly Kamala Harris • Will run the office more politically – furthering legal and social agendas (potential lawsuits against corporations on anti-trust issues, consumer protection, workplace safety and hiring practices and environmental violations) • Much same as previous term • Serves as ex officio trustee of CalPERS and CalSTRS; has fought to clean up both • Expected to encourage Democratic leadership to come to terms with current economic situation. Treasurer Bill Lockyer (56.6%) • If he aligns with Brown on major policy issues, it will be difficult for the Democratic Legislative leadership to continue to adhere to the status quo. • Has been outspoken against corporate tax loopholes when the state needs revenue. • Will continue to advocate for balanced budgets passed on time. Controller John Chiang (55.1%) • Will continue to fight to rid California budgets of fraud and abuse. • Expect significant change in leadership direction • Increasingly important Office as main implementing agency of Federal Health Care Reform • Has vowed to ensure insurance industry does not take advantage of consumers; to use office to ensure insurance rates are affordable; to push enviro agenda including establishing standards and Insurance protections in the insurance business Dave Jones (50.7%) Commissioner • Has said he will work to provide incentives for offering green insurance and making green investments. • Given record in Assembly, insurance industry can expect numerous investigations and enforcement actions challenging the rates and policy coverage. • Has opposed Obama's "Race to the Top" initiative. Supt of • Post could become increasingly important as Torlakson has alignments with Brown on increasing Tom Torlakson (54.7%) Schools *** state spending on education, new strategies for teacher recruitment and revamping testing BizFed Post-Election Highlights – Business Impact *** Denotes Identified for BizFed Outreach CA State Senate No major movements. 24 Democrats and 13 Republicans with three seats vacant (or soon to be vacant). Expecting three special elections: Senate District 1- Cooley (D) vs. Gaines (R) - Scheduled for January 4, 2011. (Special election for the recently deceased Republican Dave Cox.) Heavily Republican District (43% Republican to 33% Democratic) which Gaines should win easily. Senate District 28- Special election for recently deceased Democrat Jenny Oropeza, the election date to fill the vacant seat will be called next month. The district is 48% Democrat and 25% Republican. Assemblymembers Lieu, de La Torre and Furutani represent most of the district. ((Candidate: Lieu – Furutani and Hahn have endorsed him ***)) Senate District 17- Current seat holder is George Runner (R) who was elected to the Board of Equalization. A special election will be called next month. Assembly Members Knight and Smyth represent parts of the district. ((Potential Candidates: Unclear)) New LA County CA Senators • District 22 is now: Kevin De Leon (Gil Cedillo now in Assembly) • District 24 is now: Edward Hernandez (Gloria Romero left to run for School Supt) Overall Implications: The breakdown of Democrats to Republicans will stay largely the same, but caucuses will be much different. Republicans are united behind Senator Dutton. By nature, the leadership of the Democratic Caucus is always more challenging and the budget situation will make Senator Steinberg’s job even more difficult. Furthermore, the Senate Democratic Caucus may potentially become more moderate with the election of Juan Vargas (SD 40) and Michael Rubio (SD 16) and the return of moderates such as Ron Calderon (SD 30) and Lou Correa (SD 34). CA State Assembly New breakdown of the State Assembly is 52 Democrats and 28 Republicans. Democrats positioned well; they are two votes away from holding 2/3 of the vote needed to raise taxes or fees. New LA County CA Assemblymembers • District 37 is now: Jeff Gorell (Audra Strickland) • District 45 is now: Gil Cedillo (Kevin De Leon) • District 47 is now: Holly Mitchell (Karen Bass) • District 50 is now: Ricardo Lara (Hector De La Torre) *** • District 53 is now: Betsy Butler (Ted Lieu) *** • District 57 is now: Roger Hernandez (Edward Hernandez) • District 59 is now: Tim Donnelly (Anthony Adams) Overall Implications: With a pick-up of one seat in the Assembly, the Democratic leadership solidified its position and will be very close to gaining a 2/3 majority that could pass new taxes. Given the make-up of the districts and the difficulty in winning seats, the Assembly Republican leadership is always under pressure and has very little political or institutional power to leverage on behalf of their supporters. Minority Leader Garrick stepped down, and Assemblywoman Connie Conway was unanimously elected leader by the caucus’s 28 members on Thursday Nov. 4. U.S. Congress Republicans gained majority control of the House, and gained at least 6 seats in the Senate (although that is still below what is needed for majority control there). New Congress will be seated Jan. 2011 New LA County U.S. Representative • Karen Bass, D 33 (Diane Watson) *** U.S. House John Boehner (R-Ohio) positioned as Speaker of the House. Nancy Pelosi named Dem House leader for incoming Congress 11.17.10; Boehner named GOP House leader for incoming Congress. While Boehner will make final decisions on Committee Chairs, there is precedent for ranking minority leaders within the committee to step up as Chair. In addition, composition of the House committee(s) will change to add additional Republican members. This could mean the following changes to key Committees: Transportation & Infrastructure Committee: Mica (R-FL)*** is the presumptive Chair of this panel. Current Chair Oberstar (D-MN) lost bid for re-election. This means Rep. Nick Rahall (D-WV) would be Ranking Member, should he choose to give up his Ranking position on the House Natural Resources Committee. If he does not, Rep. DeFazio (D-OR) would be next in line for leadership of that committee. Appropriations Committee: Jerry Lewis (R-CA) is the presumptive Chair and David Obey (D-WI_ is retiring, so Norm Dicks (D-WA) would be ranking minority member of the Committee. House Energy & Commerce Committee: Rep. Fred Upton (D-MI) is presumptive Chair, if Joe Barton (R-TX) can’t get a waiver to continue to Chair this committee (the GOP term limits their Chairmen, which can be overcome by a waiver from Party leadership). Presumably Henry Waxman (D-CA) will continue as Ranking Member. Rules Committee: David Dreier (R-CA) was re-elected and is the presumptive Chair of the Rules Committee, which reviews all House legislation. Louise Slaughter (D-NY) would continue as Ranking Minority Member. Ways & Means: Dave Camp (R-MI) was re-elected and is the presumptive Chair. Fortney Stark (D-CA) would become Ranking Minority Member. Budget: Paul Ryan (R-WI) was re-elected and would become the presumptive Chair. John Spratt (D-SC) lost re-election, so Allyson Schwartz (D-PA) would become Ranking Minority Member. HOUSE: GOP unveils 22-member transition team (11/08/2010): The team is made up of 22 members and members-elect and will be led by Rep. Greg Walden (R-OR): Reps.-elect Adam Kinzinger of Illinois, Tim Scott of South Carolina, Cory Gardner of Colorado, Rep.-elect Martha Roby of Alabama. In addition to the newcomers, the transition team includes members who are in line to head key committees: Rep. David Dreier of California, a 15-term member who is in line to head the Rules Committee; Rep. Pete Sessions of Texas, who heads the National Republican Congressional Committee and may be tapped to do so again for the 2012 cycle; Rep. Paul Ryan of Wisconsin, who is line to head the Budget Committee; Rep. Doc Hastings of Washington, an eight-term member who is in line to lead the Natural Resources Committee; and Rep. Buck McKeon *** of California, who is likely to lead the Armed Services Committee. Also included on the team is Jason Chaffetz of Utah. Other returning Republican members tapped to be part of the transition team are: Reps.