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As Gov. Jerry Brown neared the end of his last State of the State speech on Thursday, Jan. 25, he invoked a name that has become a frequent theme: August Schuckman, his own great-grandfather, who left Germany in 1849 and “sailed to America on a ship named Perseverance.”

The 79-year-old Democrat cast his ancestor’s journey—and the ship’s poetic name—as a metaphor for California in an era of natural disasters and deep rifts with the federal government. “We, too, will persist,” he said, “against the storms and turmoil, obstacles great and small.”

Brown, delivering his 16th such speech during an unprecedented four-term tenure as California governor, contrasted California with the direction the United States is heading under Republican President Donald Trump—touting the state’s efforts to combat climate change and its embrace of Obamacare. He reiterated his commitment to two major infrastructure projects he’s long championed: a high-speed train that would eventually connect Los Angeles and San Francisco, and a massive tunnel to move water from the north end of the state to the south. And he gave an impassioned plea for legislators to look at the big picture of California’s criminal-justice system instead of passing new laws in response to crimes ripped from the headline.

Democrats praised Brown for an optimistic speech that demonstrated the hallmarks of his leadership. Even some Republicans offered mild praise: Assembly Republican Leader Brian Dahle called Brown “one of the most conservative Democrats in this place” for his relative prudence. But he criticized the governor for signing laws, like the gas tax, that raised the cost of living in California.

What Brown didn’t mention: the fact that California has the highest poverty rate in the nation; that housing prices that have skyrocketed beyond affordability for many residents; and that the state’s tax structure exposes it to perpetual cycles of boom and bust.

Also absent were the obscure intellectual references that have studded his past speeches—although he did contrast the state’s bloated penal code with the Ten Commandments.

His also struck some themes that are vintage Jerry Brown. He cited California’s recent wildfires and mudslides, as well as the Doomsday Clock, echoing past speeches in which he predicted environmental disaster. He advocated remedies to slow global warming—like clean cars and renewable energy—that resembled ideas he espoused when he was first elected governor more than four decades ago.

“We should never forget our dependency on the natural environment and the fundamental challenges it presents to the way we live,” Brown said to his 2018 audience. “We can’t fight nature. We have to learn to get along with her.”

Yet as he looked forward for California, he also looked back at his own family history. When Brown was first sworn in, in 1975, he rarely talked about his ancestry. As the years mounted, however, he has increasingly turned to his family-origin stories to illustrate his belief in California’s potential.

Now the Brown family’s California Dream is a common trope in his rhetoric. He talks about the great-grandfather on the Perseverance, the grandmother who was the youngest of eight children, and the father, Pat Brown, who preceded him in the governor’s office.

Some of that reflection may be the natural consequence of age. But it also reveals a governor more assured of his own accomplishments and less fearful that he’s riding on his father’s coattails, said political scientist Sherry Bebitch Jeffe. A professor at University of Southern California, she’s been following Brown’s career since he ran for the Los Angeles Community College board in 1969.

The younger Brown first moved into the governor’s office less than a decade after his father had moved out. During those first two terms in office, Jeffe said, Brown went to great lengths to distinguish himself from his father.

“He did not want to live in his shadow,” she said. “Jerry wanted to build his own legacy, his own philosophy of governance.”

His early speeches reflect the schism. Brown—a 37-year-old bachelor at the time, who famously slept on a mattress on the floor of an apartment—opened his inaugural address in 1975 with a quick quip about his dad. “My father thought I wasn't going to make it,” to become governor, he said. “But here I am.” He went on to talk about problems with environmental and land-use rules, and the need to provide a better system for funding schools and farmworker rights.

For the next six years, Brown used his State of the State speeches to float ideas: developing more clean energy, building more prisons, making housing more affordable, putting a satellite into space, and overhauling the bail system. Then, as now, he acknowledged the uncertainty of the future and urged lawmakers not to spend too much.

But near the end of his first two terms, Brown’s 1982 State of the State speech reminisced about his father, his grandmother and his great-grandfather Schuckman, who traveled the plains from St. Louis to Sacramento during the Gold Rush.

“Let me read to you from the diary that was kept during that trek westward,” Brown said then, recounting in detail their journey across deserts, through rivers and over mountains. He spoke of oxen dying of thirst and wagons going up in flames.

“These were men and women who matched our mountains, and in not too many years, built these walls,” Brown said. “We are bearers of that powerful tradition. It still drives our people and the hundreds from foreign who arrive in our state each day.”

Most people assumed, of course, that 1982 speech would be Brown’s final State of the State. But after serving as Democratic Party chair, Oakland mayor and attorney general, he reclaimed the governorship in the November 2010 election. In his inaugural address in January 2011, Brown again read from Schuckman’s diary.

“We can only imagine what it took for August Schuckman to leave his family and home and travel across the ocean to America and then across the country—often through dangerous and hostile territory—in a wagon train. But come he did, overcoming every obstacle,” Brown said.

In 2015, Brown reflected on his father’s leadership in ways he never did in those speeches during his early years as governor.

“The issues that my father raised at his inauguration bear eerie resemblance to those we still grapple with today: discrimination; the quality of education and the challenge of recruiting and training teachers; the menace of air pollution, and its danger to our health; a realistic water program; economic development; consumer protection; and overcrowded prisons,” Brown said. “So you see, these problems, they never completely go away. They remain to challenge and elicit the best from us.”

Whatever challenges lie ahead for 2018 and beyond, Brown said on Thursday: “All of us—whatever our party or philosophy—have a role in play in defending and advancing our democracy. Our forebears set the example.”

Now he’s planning retirement on the rural land in Colusa County where Schuckman settled in the 1800s. Though Brown’s upbringing is very different from most Californians, his family stories can make the austere governor more relatable, said Roger Salazar, a Democratic political consultant who works for the Legislature’s Latino Caucus.

“It’s a story that I think a lot of legislators can relate to,” Salazar. “When you look back at your familial history and the context in which they came to California, I think that’s something that we all can connect with.”

CALmatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.

Published in Politics

California’s resistance began before there was a resistance.

When Gov. Jerry Brown unveiled his final budget on Jan. 10, it bookended eight years of a progressive march to reduce greenhouse gases, expand health care, grant more rights to undocumented immigrants and raise the minimum wage to $15 an hour. Along the way, voters have assented by passing temporary taxes on the rich—not once, but twice. The top marginal income tax rate is now 13.3 percent, the highest state income tax rate in the country.

In short, policies that are now labeled acts of resistance to President Donald Trump were alive and ascendant in California long before Trump won the White House. But the contrasts have become much more stark.

Instead of cutting taxes, the Democratic governor and his party’s legislative leaders have passed a gas tax to help pay for aging infrastructure. Instead of trying to shift government out of the healthcare marketplace, California is looking for a way to fund single-payer health care, including coverage for undocumented immigrants. Instead of criminalizing pot, the state is looking forward to collecting taxes on marijuana sales.

In the months between now and the June deadline for a final budget, the governor and the Legislature will hammer out details. The focus this year: what to do with an expected surplus of $6.1 billion—and there are definitely differing opinions all around. Republicans say return it to California’s 40 million residents as a nice tax refund. The governor's priority is to fill up the state’s rainy-day fund. Democratic legislators mostly want to spend it.

“We have a very different approach,” said Assemblyman Phil Ting, D-San Francisco, who chairs the Assembly Budget Committee. “Our focus, the people who we think need tax relief, are the working Californians who are making less than $25,000. That’s where we want to spend our money, making sure they have money to pay rent, to pay for food.”

Rather than giving out “huge corporate tax breaks and a huge tax break for the wealthiest in this country,” Ting has a long list of how he would like to spend that extra money, including:

• Increasing the state’s Earned Income Tax Credit, which puts money into the hands of the working poor.

• Expanding Medi-Cal health care for poorer Californians to cover all remaining uninsured residents, mostly undocumented immigrants.

• Expanding early education for 4-year-olds through preschool and transitional kindergarten programs.

• Increasing college aid.

• Expanding mental and social services to reduce the number of criminals who go on to re-offend.

As supportive as Brown might be of these Democratic aspirations, his administration is urging legislative leaders to proceed with caution. The state’s tax structure is more vulnerable than ever to the stock market gains and losses of its wealthiest citizens, and the governor said California must prepare for the next economic downturn, because a mild recession could wipe away at least $20 billion a year in revenues.

He also warns of uncertainty from Washington, D.C.

“There are certain policies that are radical departures from the norm, and California will fight those, whether it’s immigration or offshore drilling,” Brown said. “We don’t know what will happen. I wouldn’t want to portray a California-Washington battle, although there are some key differences, and we’ll espouse our values.”

Since Brown was elected to begin his second stint as governor in November 2010, the state has climbed out of the recession and enjoyed economic prosperity. The unemployment rate, which topped 12 percent, now stands at 4.6 percent. Since his return, California has added 2.4 million jobs, and hourly wages are up $4.76 an hour. The state, which carried a $25 billion deficit in his first year back, has enjoyed billion-dollar surpluses in recent years, and the state now has a rainy-day fund.

The governor’s proposed $190 billion budget is dominated by spending on education (29 percent) and health care (32 percent). Health care spending has been growing particularly fast since the state embraced the Affordable Care Act, also known as Obamacare. The act not only grew the marketplace for private health plans; it allowed states to expand their Medicaid health insurance programs for the poor.

Because California is among 30 states that expanded Medicaid, the federal government is paying at least 90 percent of the cost for newly eligible enrollees. That has allowed California to draw billions in extra funding from the federal government to bolster Medi-Cal, the state’s version of the national Medicaid program. As a result, the number of people without health coverage in the state has dropped to a historic low: from 17.6 percent in the 1980s to 7.6 percent in 2016. Today, one in three Californians is covered by Medi-Cal.

Public schools too have greatly benefited since the recession, with much of the extra spending on schools going to improve teachers’ salaries.

However, if the federal government doesn’t reauthorize the Children’s Health Insurance Program for 1.3 million children, that could add more than $850 million in costs to the state over two years.

Worse, if Republicans in Washington slash Medicaid funding in 2018, the state could lose between $25 billion and $50 billion, said Chris Hoene, executive director of the California Budget and Policy Center, a progressive think tank in Sacramento.

“The reality is California could not afford the scale of the cuts the GOP has been proposing,” Hoene said. “That’s going to put state leaders in a position of deciding who gets state services and how do they fund that.”

Other factors are straining the budget. For example, pension costs for public workers continue to be one of the fastest-growing liabilities—driven by lower investment-rate assumptions, higher health care costs and longer life spans.

Voters, too, could turn on Brown and lawmakers. Early polling suggests Republicans have a decent shot at repealing a gas tax hike that went into effect late last year. Brown said at a press conference Wednesday that he believes a repeal initiative could be defeated.

The Legislature’s nonpartisan budget analyst is also urging lawmakers not to commit to too many new spending programs.

“As it crafts the 2018-19 budget and future budgets, we encourage the Legislature to consider all of the uncertainty faced by the budget in future years and continue its recent practice of building its reserve levels,” the analyst wrote.

On the flipside, Republicans are calling for a tax refund, if not an outright repeal of state income taxes. They argue that California’s high taxes chase residents out of state.

“This surplus is a direct result of Capitol Democrats overtaxing hard-working Californians,” said Assemblyman Matthew Harper, R-Huntington Beach. “Rather than expanding an ever-growing list of government programs, our leaders should figure out a way to return that money to the people who earned it in the first place.”

Assemblyman Vince Fong, R-Bakersfield, said he plans to introduce tax cuts aimed at helping families and small businesses stay in California.

“As we see all too often now, we are losing families and small businesses to neighboring states that have tax burdens much lower than California’s high-priced tax code,” Fong said on Twitter. “We have an opportunity to change that.”

Brown dismissed the refund idea, saying it would only prompt service cuts to public schools and universities later. “If you want to budget responsibly, you need big surpluses in years that are good,” he said.

Still, there’s a growing sentiment that California may have to respond to recent changes in the federal tax plan, specifically a $10,000 cap on state and local deductions that will hit millions of households.

According to the state Finance Department, the average deduction for state and local income taxes alone is nearly $16,000 per return, while state and local property taxes average less than $6,000 per return. Because a portion of those taxes will no longer be deductible, it acts as double taxation for California taxpayers.

Senate President Pro Tem Kevin de León, who is running for U.S. Senate, introduced legislation Thursday to shield Californians from bearing the costs of the tax overhaul. The bill, dubbed Protect California Taxpayers Act, would allow taxpayers to make charitable deductions to the state and receive a dollar-for-dollar tax credit on the full amount of their contribution. By having residents donate to the state government as a charitable contribution, the contribution remains deductible on federal taxes.

“The Republican tax plan gives corporations and hedge-fund managers a trillion-dollar tax cut and expects California taxpayers to foot the bill,” de León said in announcing his legislation. “We won’t allow California residents to be the casualty of this disastrous tax scheme.”

Brown was particularly vocal against the GOP tax proposal, calling it a “tax monstrosity,” but the governor expressed reservations about whether the state could sidestep federal law.

“It looks interesting,” Brown said. “But two questions: Can it work? If it does work, can the Internal Revenue Service issue a regulation and completely subvert it?”

De León responded that he was confident it would work, because similar charitable deductions have already been given out for education-based contributions.

For now, state Democrats are in agreement about a common threat.

Whether it’s federal tax changes or entitlement cuts, the leader of the Assembly, Anthony Rendon, D-Paramount, said he’s most concerned Republicans in Congress and the Trump administration will take another swipe at liberal California in 2018. “We’re worried about the next shoe to drop.”

CALmatters is a nonpartisan, nonprofit media venture explaining California policies and politics.

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California’s Democratic legislators want to extend health benefits to undocumented young adults, the continuation of an effort that ushered children without legal status into the state’s publicly funded health care system last year.

It is unclear when the program would start or how much the state would spend if the proposal, which could cost up to $85 million a year, is approved by Gov. Jerry Brown. Lawmakers are working out details ahead of their June 15 deadline for passing a new budget.

The plan would provide full-scope coverage for 19-to-26-year-olds who qualify for Medi-Cal, the state’s name for Medicaid. Currently, the federally funded program covers only emergency visits and prenatal care for undocumented residents. Under the proposal, revenue from taxes on tobacco products would absorb expenses for all other coverage.

Democratic Sen. Ricardo Lara of Bell Gardens has been one of the strongest voices for expanded care. In 2015, he pushed for coverage for all adults. That proposal was changed to admit only undocumented children; it took effect last year. This year, he said in a recent video message to supporters, “We are going to make the final push to ensure we capture our young adults.”

Supporters’ ultimate goal is to include all undocumented adults, said Anthony Wright, executive director of Health Access California, a health care consumer group backing the proposal.

“We believe without coverage, people are sicker, die younger and are one emergency away from financial ruin. It has consequences for their families and their communities—both health and financial consequences,” he said.

The plan would mean that undocumented children currently in the program would not age out at 19, putting low-income undocumented immigrants on par with those allowed to stay on their parents’ insurance under the Affordable Care Act (often called Obamacare) until they are 26.

Republican Sen. John Moorlach of Costa Mesa opposes an extension of benefits. One reason is financial: California doesn’t have “a balance sheet we can brag about,” he said, citing the state’s debt load, among other reasons.

Secondly, he disapproves of illegal immigration. Moorlach migrated to the U.S. legally as a child with his family from the Netherlands.

“I’m kind of offended that we feel an obligation to pay for expenses for those who did not come through the front door,” he said. “I certainly have compassion and want to help people in need, but I’m having difficulty, as a legal immigrant, because we are already in such bad fiscal shape.”

Advocates argue that undocumented immigrants help propel California’s economy with their labor and the taxes they pay, and that they cost the state money when they don’t work because of illness or when they end up in the emergency room.

“Health care is a right,” said Ronald Coleman, director of government affairs for the California Immigrant Policy Center, an advocacy organization and supporter of the proposal. “These are folks we are investing in through the California Dream Act and through other programs our state offers, and it makes sense to invest in our future, which our young adults will be.”

Estimates vary for how many people this expansion of Medi-Cal would serve and what the costs would be. Each house of the Legislature has passed its own version of the proposal, with differing figures attached.

The Assembly allocated $54 million a year to cover an unspecified number of additional enrollees, with a July 2017 start date. The Senate proposed $63.1 million in the first year, beginning in 2018, and $85 million annually thereafter, also without specific population numbers.

Coleman’s center, which is working closely with lawmakers on the issue, estimates about 80,000 new people would be eligible, and the cost would be around $54 million a year. That assumes the federal Deferred Action for Childhood Arrivals program continues, because it provides access to Medi-Cal. If DACA were eliminated, the figures would increase to about 100,000 eligible people and about $84 million in annual costs, Coleman said.

The governor’s proposed budget does not include the proposed expansion or any money for it.

Kevin, a 19-year-old Angeleno who asked that only his first name be used, because he lives in California illegally, wants the proposal to succeed. He has been working for more than a year to distribute information about Medi-Cal children’s coverage to immigrant families.

He meets all but one of the requirements for DACA: He was not in the country before June 15, 2007. He arrived in the U.S. in 2011 at age 14 from Guatemala, on a visa that later expired. He graduated high school, has no criminal record and is now majoring in business administration at California State University, Los Angeles.

“There’s this misunderstanding that young people are healthy,” said Kevin, who suffers from eczema. He worries about the chronic condition flaring up. “When it gets worse, it doesn’t let me do anything with my hands.”

He is enrolled in a county health insurance program for low-income residents, but he can’t afford a dermatologist. He can barely pay for the prescription lotion he uses for the eczema, and sometimes goes without it.

“We are trying to have a better economic standard, and we are like the building blocks of this society,” he said. “Having health insurance will allow us to focus more on school and do our regular day-to-day activities. A healthier society works better for everyone.”

If lawmakers can now agree on details, a consensus proposal will go to the full Legislature for approval. The deadline for that is June 12.

CALmatters.org is a nonprofit journalism venture dedicated to exploring state policies and politics.

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