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Schwarzenegger’s take on Kevin McCarthy: ‘He’s still a winner’

Rep. Kevin McCarthy.
Former House Speaker Kevin McCarthy has announced he’s leaving Congress at the end of the year.
(Anna Moneymaker / Getty Images)
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California’s most prominent Republican called it quits this week, marking the end of an era for the man who crafted his entire political career around becoming House speaker, only to be tossed out in a historic vote after less than a year at the helm.

I’m talking about Rep. Kevin McCarthy of Bakersfield, of course.

McCarthy’s final fall was presaged by his rocky rise, coming to power as he did in January after 15 votes, and concessions that made him vulnerable to a small rebellious faction within the House Republican conference. Since he was ousted as speaker on Oct. 3, speculation has swirled over whether he would remain in Congress.

The answer became clear Wednesday when McCarthy announced his resignation in a Wall Street Journal op-ed, saying he plans “to serve America in new ways.”

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McCarthy said he will step down by the end of the year, setting off the question of who will run to replace him in the heavily Republican congressional district that spans from Bakersfield to Fresno along the southern Sierra Nevada foothills.

McCarthy began his political career in Sacramento, serving two terms in the Assembly during the tumultuous period when voters recalled Democratic Gov. Gray Davis and replaced him with Republican Arnold Schwarzenegger. McCarthy rose to become the minority leader and worked closely with Schwarzenegger.

So when the former governor came to Sacramento last month to celebrate the 20th anniversary of winning the historic recall election, I asked him for his perspective on McCarthy’s epic rise and fall in Washington. Did McCarthy make a mistake along the way that led to his leadership being so tenuous and so brief?

Schwarzenegger answered by calling McCarthy “an old friend” and saying he was “just fantastic” to work with in Sacramento.

“And when he went to Washington, I was very proud of him. There was some things that he did that I would not approve of, and couldn’t approve of,” Schwarzenegger said.

Like what? I asked, remembering how critical Schwarzenegger was of President Trump and the politicians who supported him after the Jan. 6 insurrection.

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“It doesn’t matter,” Schwarzenegger replied.

“But again, that doesn’t mean that we have to see things exactly the same way. We are two human beings. Even when you’re in the family, you see different opinions within your family. So it is just the way it is. But I always was a big supporter of his, and I will continue being a big supporter of Kevin. I think that one should not look at it kind of like in the short-sighted way and say he stumbled here, or he failed in this. I think that he’s a winner. So Kevin lost a battle but he’s still a winner because he gets up, he dusts himself off and he moves on.”

That was on Nov. 17. Three weeks later, McCarthy was doing just that.

I’m Laurel Rosenhall, The Times’ Sacramento bureau chief, here with your guide to the week’s news in California politics.

Changes coming to $25 minimum wage law for healthcare?

California’s budget situation is not looking good.

Tax revenues have come in far lower than expected, leaving the state with a projected deficit of $68 billion in the upcoming fiscal year, the state Legislative Analyst’s Office announced today. In raw dollars, it’s the largest deficit the state has ever faced.

“Mounting economic headwinds have pushed the state’s economy into a downturn,” the analyst wrote, citing a slowdown of home sales caused by rising mortgage rates; a reduction in the number of companies going public, leaving businesses with less funding to expand operations or hire new workers; and an increase in unemployment since last year.

But just as California has less money flowing in from taxpayers, the state is staring at a plan to begin spending some $4 billion more on wages for healthcare workers. That’s because Gov. Gavin Newsom signed a union-backed bill in October that requires gradually increasing pay for all workers in healthcare settings — including janitors, launderers and gift shop clerks — to $25 an hour. It’s the most expensive new law California has seen in years.

Now Newsom is seeking “major reforms” to pare it back in light of concerns about the state budget, he told Times reporter Mackenzie Mays last week. While the governor did not specify how the state might cut back, he said the coming changes were “all part of an understanding” with labor leaders before he signed the bill.

“We knew exactly where we are on the finances. We were very upfront with these guys,” Newsom said.

“I said ‘no way in hell,’ and we worked on something, and that will reveal itself in a matter of weeks.”

We’ve got more on this scoop in this article by Mays and Taryn Luna: As California deficit estimate hits $68B, Newsom seeks “major changes” to healthcare wage law

The name that was deleted from Biden’s L.A. fundraiser

President Biden is coming to Los Angeles on Friday for a pair of star-studded campaign fundraisers hosted by Hollywood big shots including directors Steven Spielberg and Rob Reiner, producers Shonda Rhimes and Peter Chernin and former studio chief Jim Gianopulos.

The original invitation for Friday’s fundraiser also included another name as co-host: Matthew Pritzker, a scion of the politically connected and wealthy family that started the Hyatt hotel chain. His cousin, Illinois Gov. J.B. Pritzker, is co-chair of Biden’s campaign.

But Matthew Pritzker’s name has been scrubbed from an updated invitation circulating among Hollywood donors this week. He was removed from invitations after he was accused of unwanted sexual acts and sued for $25 million, Times political reporter Benjamin Oreskes discovered.

In a lawsuit filed last month in New York Supreme Court, attorneys for “Jane Doe” allege that in 2009 “Pritzker engaged in sexual acts with Plaintiff without her consent, and while she was incapacitated and could not provide consent.”

Pritzker didn’t respond to repeated requests for comment. Read more here: A Pritzker heir was about to co-host a Biden fundraiser. Then he was accused of sexual misconduct

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