The DeSantis countdown begins

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May 09, 2023 View in browser
 
Playbook PM

By Garrett Ross

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Ron DeSantis pointing while speaking at a podium.

Florida Gov. Ron DeSantis is taking more steps toward a presidential run. | Francis Chung/POLITICO

BREAKING — “Harlan Crow refuses to hand over gift records to Senate Finance,” by Benjamin Guggenheim: “Billionaire HARLAN CROW has refused to comply with a request by Senate Finance Chair RON WYDEN for a complete accounting of Crow’s gifts to Supreme Court Justice CLARENCE THOMAS. According to RYAN CAREY, a spokesperson for Wyden (D-Ore.), the Senate tax chief received an ‘obstructive letter’ from a lawyer for Crow late Monday night declining to answer a series of questions about the billionaire’s financial arrangements with Thomas that Wyden posed to Crow in an April 24 letter. The Finance Committee is expected to respond shortly.”

SETTING THE TABLE — “What each congressional leader wants out of the big Biden meeting — and what they’ll likely get,” by Katherine Tully-McManus: “One top leadership aide told POLITICO that not only do they not expect much tangible movement today on closing the negotiating gap between Biden and Speaker KEVIN McCARTHY (R-Calif.), but they’re hoping the meeting won’t ‘devolve’ into raised voices in the Oval Office.”

Heads up: NBC’s @GarrettHaake: “NEW: @SpeakerMcCarthy tells me he will reject any White House effort at a short term debt limit lift to align calendar with budget negotiations. ‘Let’s just get this done now.’”

DECODING DeSANTIS — It’s looking more and more likely that Florida Gov. RON DeSANTIS will make his official entry into the 2024 GOP presidential primary sooner rather than later.

He has officially severed ties with his state-level PAC, our colleagues Gary Fineout and Sally Goldenberg report.

Here’s why that matters: the Friends of Ron DeSantis PAC currently has $86 million in the bank. ““But DeSantis cannot use money raised for Friends of Ron DeSantis in a federal race because state law does not limit how much someone can give to the political committee or the source of the donations,” Gary and Sally write. “But that money could be shifted to a super PAC that backs DeSantis if the governor is no longer connected to the political committee.”

One sign of how he’s distancing himself from the PAC: “The website for the committee was changed on Tuesday morning to say that its mission is ‘committed to advancing the Freedom Agenda and keeping Florida free.’ But more importantly, the website says that the committee is associated with state Sen. BLAISE INGOGLIA and not DeSantis.”

Meanwhile, a pro-DeSantis super PAC is staffing up in 2024’s early states, AP’s Thomas Beaumont reports,

A sense of the scale and timeframe: Never Back Down, the super PAC promoting DeSantis’ presidential campaign, “plans to have dozens of staff in place in the first 18 states on the Republican presidential primary calendar in the coming weeks, a move indicating that his expected 2024 announcement is drawing closer,” Beaumont writes.

What that looks like in Iowa: “In Iowa, where the leadoff GOP caucuses are expected to begin the 2024 voting, the group has placed about a half-dozen staff, including the former chief of staff to Gov. KIM REYNOLDS, as part of a broader strategy to handle on-the-ground organizing for DeSantis, a function typically done by a candidate’s campaign staff,” Beaumont writes, noting that such a gambit “has been tried in previous election cycles, though less ambitiously and with little success.”

Worth flagging: DeSantis will be in Cedar Rapids on Saturday for an Iowa GOP fundraiser.

Oh, and BTW: Former Trump hand STEVE CORTES endorsed DeSantis for president this morning in an op-ed for Newsweek: “I have worked as a dedicated spokesman and advocate for Donald Trump for much of the last seven years, so I do not arrive at that conclusion flippantly. But our America First movement has always been bigger and more important than any one individual, and heading into this crucial election, our activism and our votes must be guided by a clear-eyed assessment of recent failures and potential future successes.”

ABORTION FALLOUT — “Most U.S. adults say the abortion pill mifepristone should stay on the market, Post-ABC poll finds,” by WaPo’s Emily Guskin: “The poll finds that 66 percent of U.S. adults say mifepristone should remain on the market, while 24 percent say it should be taken off the market. Just under half, 47 percent, say access to mifepristone should be kept as is; 12 percent say it should remain on the market but be more restricted than it is now.”

TALKER — “Milo Yiannopoulos Caught in Marjorie Taylor Greene-Kanye West Campaign Cash Scandal,” by The Daily Beast’s Roger Sollenberger: “Alt-right agitator MILO YIANNOPOULOS used the credit card for Rep. MARJORIE TAYLOR GREENE’s (R-GA) campaign last November to purchase an internet domain for KANYE WEST’s still unannounced 2024 presidential bid, and he was reimbursed for ‘domain transfer’ by the West campaign the same day for $3,000 above cost, according to receipts obtained by The Daily Beast and a person with knowledge of the events.”

Good Tuesday afternoon. Thanks for reading Playbook PM. Drop me a line: gross@politico.com.

 

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2024 WATCH

IN CASE YOU WERE WONDERING — “Melania fully behind Trump’s 2024 campaign, says it would be a ‘privilege’ to serve as first lady again,” by Fox News’ Brooke Singman

ON THE ISSUES — “Tim Scott proposes reinstating Title 42 border restrictions due to surge in fentanyl overdose deaths,” by Fox News’ Paul Steinhauser

MORE POLITICS

AD WARS — “Cheney launches New Hampshire TV ad slashing Trump,” by NBC’s Vaughn Hillyard in Manchester, N.H.: “‘Donald Trump is a risk America can never take again,’ [former Rep. LIZ] CHENEY narrates in the 60-second ad funded by her political organization, Great Task PAC. Cheney does not appear on camera in the ad, but with footage of the Jan. 6, 2021 attack on the U.S. Capitol playing, she continues, ‘Donald Trump is the only president in American history who has refused to guarantee the peaceful transfer of power … There has never been a greater dereliction of duty by any president.’”

RACE RATINGS — WSJ’s Siobhan Hughes previews the task ahead for Republicans looking to take back the upper chamber next year: “The 2024 Senate Map Favors Republicans, but Candidates Remain the Wild Card”

CONGRESS

ANOTHER MACE PROFILE — NYT’s Annie Karni is up with the latest big swing on Rep. NANCY MACE, the outspoken South Carolina Republican who has scored a spate of recent coverage for her relatively rare place in her party: “Nancy Mace, a ‘Caucus of One’ in the G.O.P., Says She’s Trying to Change Her Party”

A buzzy quote on Trump: “He defined me as an independent voice in a way that I couldn’t have,” Mace said. “I would not have won by 14 points had Donald Trump not come after me, and had I not been outspoken when Roe v. Wade was overturned.”

 

DON’T MISS THE POLITICO ENERGY SUMMIT: A new world energy order is emerging and America’s place in it is at a critical juncture. Join POLITICO on Thursday, May 18 for our first-ever energy summit to explore how the U.S. is positioning itself in a complicated energy future. We’ll explore progress on infrastructure and climate funding dedicated to building a renewable energy economy, Biden’s environmental justice proposals, and so much more. REGISTER HERE.

 
 

THE WHITE HOUSE

ROAD TO PORT MORESBY — “Biden to become first sitting U.S. president to travel to Papua New Guinea,” by CNN’s Betsy Klein

JAN. 6 AND ITS AFTERMATH

INSIDE THE PROUD BOYS TRIAL — “‘Don’t freak out’: Notes from defense table during the Proud Boys seditious conspiracy trial,” by CNN’s Hannah Rabinowitz: “CNN reviewed a number of the handwritten notes written by the far-right Proud Boys and their legal teams that spanned the course of the seditious conspiracy trial — one of the highest-profile and most aggressive prosecutions brought by the Justice Department since the Capitol attack. The notes passed around the defense table give a rare insight into defendants who appeared anxious about their futures, at times bored with the drawn-out legal fights that plagued the trial, and focused on proving there was no overarching plan to commit sedition.”

POLICY CORNER

BURNS NOTICE — “William Burns, a C.I.A. Spymaster With Unusual Powers,” by NYT’s Robert Draper: “The impact of his two-year tenure has been as sweeping as it has been subtle. The C.I.A., demoralized and marginalized during the Trump years by a president who said publicly that he believed [Russian President VLADIMIR] PUTIN over his own intelligence agencies, has entered a period of resurgent prestige. As a member of Mr. Biden’s inner circle who once served as the ambassador to Russia, Mr. Burns has helped restore America’s upper hand over Mr. Putin. Though spy chiefs are typically relegated to the shadows, the Biden administration has thrust theirs into the spotlight.”

HOW WE GOT HERE — “How those fleeing Ukraine inspired U.S. border policies,” by AP’s Colleen Long and Elliot Spagat

CLIMATE FILES — “Biden’s carbon-capture agenda faces hurdles on the left,” by Allison Prang

 

GET READY FOR GLOBAL TECH DAY: Join POLITICO Live as we launch our first Global Tech Day alongside London Tech Week on Thursday, June 15. Register now for continuing updates and to be a part of this momentous and program-packed day! From the blockchain, to AI, and autonomous vehicles, technology is changing how power is exercised around the world, so who will write the rules? REGSITER HERE.

 
 

BEYOND THE BELTWAY

THE REAL WORLD IMPACT — “Chicago, New York Struggle to House Migrants as Border Restrictions End,” by WSJ’s Joe Barrett and Jimmy Vielkind: “In Chicago, migrants are sleeping on the floors of police stations while they wait for room in shelters. In New York, where officials have opened 122 emergency shelters and the system is operating at record levels, the former police academy has been pressed into service.”

EDUCATION WARS — “‘Trump was great at this’: How conservatives transformed a Colorado school district,” by NBC’s Tyler Kingkade in Woodland Park, Colo.

AMERICA AND THE WORLD

ENVOY-AGE — “U.S. Ambassador to Israel Tom Nides to leave post this summer,” by Axios’ Barak Ravid: “Nides said he wants to go back to the U.S. for personal reasons after being away from his family since December 2021, the official said. Nides notified the senior staff at the U.S. embassy Tuesday morning local time about his planned departure, two U.S. officials told Axios.”

CYBERCRIME — “U.S. busts Russian cyber operation in dozens of countries,” by AP’s Eric Tucker: “Prosecutors linked the spying operation to a unit of Russia’s Federal Security Service, or FSB, and accused the hackers of stealing documents from hundreds of computer systems belonging to governments of NATO members, an unidentified journalist for a U.S. news organization who reported on Russia, and other select targets of interest to the Kremlin.”

MEDIAWATCH

FOX FALLOUT — “Fox’s Costs From Defamation Suit Lead to a Quarterly Net Loss,” by NYT’s Michael Grynbaum: “[LACHLAN] MURDOCH, on a call with investors and analysts, called the $787.5 million settlement — believed to be the largest in the history of defamation law — ‘a decision clearly in the best interest of the company and its shareholders.’ … His remarks came after Fox revealed a real-world consequence of the landmark settlement: The company swung to a net loss in the first three months of the year, its quarterly revenue erased — and then some — by payments associated with resolving the lawsuit with Dominion, an election technology firm.”

IN DEDICATION — “Fox News dedicates London bureau to journalist Pierre Zakrzewski, who was killed covering war in Ukraine,” by Fox News’ Brian Flood

PLAYBOOKERS

OUT AND ABOUT — The National Park Service and Friends of the National World War II Memorial co-hosted a V-E Day commemoration at the National World War II Memorial yesterday morning, commemorating the 78th anniversary of the end of World War II. SPOTTED: Ukrainian Ambassador Oksana Markarova, Jeff Reinbold, Jane Droppa, Roger Readwin, William Horton, George Arnstein, Frank Cohn, Dixon Hemphill, Harry Miller, Alex Kershaw and retired Army Major Gen. John Herrling.

— Maria Teresa and Raj Kumar hosted a party at their residence to celebrate Ambassador Michael Froman’s new role as president of the Council on Foreign Relations last night. SPOTTED: Rep. Sara Jacobs (D-Calif.), Nancy Goodman, Michael and Afsaneh Beschloss, Symone Sanders-Townsend, Andrea Mitchell, Gayle Smith, Evan Ryan, E.J. Dionne, Alan Fleischmann, Dafna Tapiero, Adrienne Elrod, Ken Thomas, Stephanie Young, Erin Wilson, Jonathan Capehart, Aaron Williams, Andrew Steer, C.D. Glin, Jirair Ratevosian and Micheal Ighodaro, Swanee Hunt, Eric Braverman, Chad Griffin and Tony Tijerino.

— Tom and Susie Kahn hosted a private dinner at their residence on Sunday night for Latvian Ambassador Māris Selga and his wife Marika to honor Latvia’s close alliance with the U.S. and its strong support for Ukraine. SPOTTED: Mike Abramowitz, Susan Baer, Anne Witkowsky, John Barker and Tom Davis.

TRANSITIONS — Russell Lopez is joining AmeriCorps as chief of comms and marketing. He previously led development and implementation of strategic comms in the U.S. Patent and Trademark Office. … Seth Brasher is now director of external affairs for Radiance Technology. He previously was operations coordinator for Sen. John Kennedy (R-La.).

… Sarah Newsome will be digital education manager for the Chief Executives Organization She previously has been comms director for Rep. Rob Wittman (R-Va.) … Gloria Labbad is now principal and general counsel at Invariant. She previously was a partner and corporate counsel at FGS Global.

WEDDINGS — Andy Jones, of Federal Street Strategies, and Rachel Nichols, a nurse practitioner at a local clinic, got married on April 22 at Hook Hall in Washington, D.C. Sen. Ben Ray Luján (D-N.M.) presided over the ceremony along with the couple’s attendants, Evelyn Jones and Alexander Jones. PicAnother pic

ENGAGED — Patrick Cole, a DMV area executive with First Citizens Bank, and Blake Brown, a civics outreach manager at Google and a Biden White House and DNC alum, got engaged on Friday on the beach in Riviera Maya. The two met in their apartment building gym, with masks on, at the peak of the pandemic. Pics

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NFX’s James Currier: Where unicorn ideas come from and why founders ‘have to keep pivoting’

TechCrunch+ Newsletter
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By Walter Thompson

Tuesday, May 09, 2023

Welcome to TechCrunch+ Tuesday

Welcome to TechCrunch+ Tuesday image

Image Credits: Haje Kamps / TechCrunch

Are you a seed-stage founder who's building a unicorn?

Last month, at TechCrunch Early Stage, I spoke to NFX Founding Partner James Currier about where ideas for billion-dollar companies come from.

Currier, who was an angel investor in Patreon, Lyft and DoorDash, said startups that grow into unicorns have three basic forms of defensibility:

  • Network effects: Your product becomes more valuable as more people use it.
  • Embedding: Integrate your services so deeply, customers "cannot rip them out."
  • Data loops: Gather, process and act on real-time data.

"This is really only talking about world-changing, big-ass businesses with a lot of impact that could be a billion dollars or more in value," he said.

After giving a presentation he'd previously shared at Harvard Business School, Stanford and MIT, Currier outlined the mental models unicorn founders adopt and offered candid advice for early-stage entrepreneurs, including his thoughts on building a founding team:

"You have to figure out what you and your team are capable of doing. There are all these big pivots that you need to take, but you might not have the people for it. And then it's a real tear-down."

Thanks for reading,

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

Read More

Hidden in plain sight: 5 red flags for investors

Hidden in plain sight: 5 red flags for investors image

Image Credits: Steven White / Getty Images

Investors may review hundreds of pitches each year, which means they're compelled to make decisions quickly. It's not a great system — because it's largely based on relationships, bias is baked into the recipe.

And given the rapid pace of dealmaking, "even the most experienced angel investors — and VCs — can overlook red flags that are subtle and not immediately apparent," writes Marjorie Radlo-Zandi.

Drawing from her years as a mentor, an angel and a board member, she shares five scenarios that should give investors second thoughts, e.g., "where the founder has a romantic or spousal relationship with a staff member."

Read More

TechCrunch Disrupt 2023

Sponsored by TechCrunch

Come to San Francisco from September 19 - 21 to learn something new and network with other founders and investors.

Early Bird sale ends in 3 days!

Are you spending too much on paid acquisition?

Are you spending too much on paid acquisition? image

Image Credits: Darieus / Getty Images

Every startup isn't ready to hire a full-time marketer, but that's no excuse to toss money out the window on paid acquisition.

In his latest TC+ column, growth marketer Jonathan Martinez explains how to use Google Sheets to create a regression analysis spreadsheet to capture and improve metrics for weekly spending and customer acquisition.

"What's great about this kind of analysis is that it provides a clear depiction of what your optimal expenditure is at the paid channel level," he writes.

"If you're looking to get analytical and have a minimum of 90 days of data at varying levels of spending, a regression analysis is your answer."

Read More

Generative AI and copyright law: What's the future for intellectual property?

Generative AI and copyright law: What's the future for intellectual property? image

Image Credits: Sean Gladwell / Getty Images

In an article written by Gai Sher and Ariela Benchlouch from the Innovation and Technology practice group at Greenspoon Marder LLP, the authors recap a recent guidance document released by the U.S. Copyright Office and examine multiple legal developments in the space.

"While the future of AI and its legal ramifications remain uncertain, we are seeing the emergence of competing interests come to light between authors, AI companies and the general public," they write.

Read More

How to find the right investors for your startup

How to find the right investors for your startup image

Image Credits: pchyburrs / Getty Images

You can't tell a compelling story unless you know your audience, which is why effective founders exhaustively research investors before they send a pitch deck.

In his latest article, Haje Jan Kamps shares a six-step process that helps first-timers articulate which traits they're looking for and "how to identify investors that invest in your space, stage and geography."

Read More

Western sanctions against Russia: Tips for tech companies managing compliance risk

Western sanctions against Russia: Tips for tech companies managing compliance risk image

Image Credits: LeMusique / Getty Images

After its unprovoked invasion of Ukraine, much of Russia’s tech talent fled and Western nations levied sanctions to isolate its economy.

The U.S, the EU, the UK and other countries recently moved to punish Russia further with additional embargoes, “including expanded export controls over drone components, electronics, industrial equipment, and other items,” writes Anthony Rapa, a partner at law firm Blank Rome.

In this TC+ post, Rapa offers a detailed overview of the latest export controls and addresses concerns “over the ongoing diversion to Russia of items restricted under sanctions.”

Read More

Read more stories on TechCrunch.com

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California Today: What to Know About California’s Reparations Efforts

A conversation with Kurtis Lee, a New York Times economics correspondent covering the state's reparations task force.
Author Headshot

By Soumya Karlamangla

California Today, Writer

It's Tuesday. What to know about California's reparations efforts. Plus, Los Angeles's innovative solutions for multifamily housing.

Members of the public during a meeting of the task force studying reparation proposals in Oakland on Saturday.Jason Henry for The New York Times

As social justice protests swept the country in 2020 after the murder of George Floyd, California took a first-in-the-nation step in the name of racial equity.

The state created a task force to study and recommend reparations for Black Californians, putting into motion an idea that had stalled for decades at the federal level.

The nine-member panel spent months conducting research and holding listening sessions from the Bay Area to San Diego. And in its final report, approved over the weekend, the panel recommended a sweeping statewide reparations program, including a formal apology to Black residents and billions of dollars in payments.

Though California never officially allowed slavery within its borders, discriminatory practices like redlining and school segregation held Black Californians back for generations.

"This really is a trial against America's original sin, slavery, and the repercussions it caused and the lingering effects in modern society," said Assemblyman Reggie Jones-Sawyer, one of two state lawmakers on the task force.

The numbers are stark. The median wealth of Black households in the United States is $24,100, compared with $188,200 for white households, according to the Federal Reserve.

I spoke to Kurtis Lee, an economics correspondent for The New York Times in Los Angeles who has been closely covering the state's reparations efforts. Here's our conversation, lightly edited for clarity.

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Roughly 2.5 million Californians identify as Black or African American. Could all of them qualify for payments?

Not necessarily. Last year, the state task force voted that any reparations should be based on lineage — basically, any descendant of an enslaved African American or a free Black person living in the United States before the end of the 19th century would qualify. How exactly people will prove that lineage has not been completely determined, and would be worked out through any legislation.

The panel considered awarding reparations in the form of tuition or housing grants, but ultimately landed on direct payments instead. What is the most that someone could get under this plan?

In theory, a lifelong state resident who is 71 could be eligible for roughly $1.2 million in total compensation for housing discrimination, mass incarceration and additional harm outlined in the report. These are preliminary estimates, and all of this falls on state lawmakers in Sacramento to create and pass legislation.

Right. So what happens next?

The task force will present its report to the Legislature ahead of a July 1 deadline, and from there, it's up to lawmakers to get to work. Constituents here in California, politicians in other states, historians and economists are definitely going to be watching to see what comes about.

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California had a budget surplus when the panel was created, but it does not now. How might that affect the outcome?

Back in 2020, the state was in a different financial position. A few months ago, Gov. Gavin Newsom, who supported the creation of the reparations task force, announced that the state is facing a roughly $22 billion deficit. When it comes to reparations, that will probably come up in debates in Sacramento among legislators.

For more:

Enjoy all of The New York Times in one subscription — the original reporting and analysis, plus puzzles from Games, recipes from Cooking, product reviews from Wirecutter and sports journalism from The Athletic. Experience it all with a New York Times All Access subscription.

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Rowers white-water rafting near Placerville in April.Haven Daley/Associated Press

The rest of the news

SOUTHERN CALIFORNIA
CENTRAL CALIFORNIA
  • Aid for Planada: Central Valley legislators have submitted a request for $20 million from the state in disaster-relief funds for Planada, a community in Merced County that is still struggling to recover from devastating flooding this winter, The Fresno Bee reports.
  • Community hospital could face permanent closure: After shutting its doors in January and filing for bankruptcy in March, Madera Community Hospital faces an uncertain future, with its license set to expire May 26, The Fresno Bee reports.
NORTHERN CALIFORNIA
  • T-Mobile store closes: The retail landscape of downtown San Francisco is looking a little more barren with the permanent closure of T-Mobile's flagship store in Union Square, SFGate reports.
  • Oakland strike: Educators in Oakland are continuing their strike, urging district officials to consider negotiating on more than economic issues, CBS News reports.
  • Diocese declares bankruptcy: Contending with hundreds of sexual abuse lawsuits spanning decades, the Roman Catholic Bishop of Oakland has filed for bankruptcy on behalf of the diocese, The Los Angeles Times reports.
A ghost town in Bodie State Historic Park.George Rose/Getty Images

Where we're traveling

Today's tip comes from June Oberdorfer, who lives in San Jose. June recommends visiting the ghost town of Bodie in Mono County:

"I've been to Bodie several times, and there is something otherworldly about it, as if it were frozen in the instant the gold mining was abandoned. It's easy to imagine stories about the people who occupied the many houses, stores, and churches, and then left quickly for new opportunities. It's a photographer's paradise."

Tell us about your favorite places to visit in California. Email your suggestions to CAtoday@nytimes.com. We'll be sharing more in upcoming editions of the newsletter.

Dr. Ross E. DeHovitz and his wife, Ann DeHovitz, visited the Museum at The Times, a collection at the news organization's headquarters, last week.David W. Dunlap

And before you go, some good news

Dr. Ross E. DeHovitz, a semiretired pediatrician in Palo Alto, fell into the habit of reading The New York Times every day when he was in medical school. He even perused the tiny paid notices at the bottom of the front page known as "reader ads" — little notes from Times readers to the world.

So when it came time to pop the question to his girlfriend, Ann, in 1989, DeHovitz decided to place a reader ad himself: "Ann, my love for you is forever! Please marry me. Love, Ross."

Once the newspaper arrived at Ann's apartment in San Francisco, he asked her to read the newspaper to him aloud, telling her he had had a very bad day. She humored him, and read all the way through Page 1 and moved onto Page 2 before DeHovitz stopped her. He asked her to turn back to the front page, which is when she spotted the two tiny lines of type dedicated to her.

"Hell, yes, I'll marry you," she answered.

Read the couple's full story in — where else? — The Times.

Thanks for reading. I'll be back tomorrow. — Soumya

Briana Scalia, Johnna Margalotti and Geordon Wollner contributed to California Today. You can reach the team at CAtoday@nytimes.com.

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