PROGRAMMING NOTE: This is our final California Playbook of the year. We’ll be off for the holidays but back to our regular schedule on Jan. 6. We wish you and yours a Merry Christmas, Happy Hanukkah, Blessed Kwanzaa and a Happy New Year! THE BUZZ: DOUBLE TAKE — The usually low-profile world of California tax governance punctured mainstream Democratic politics this week following a head-turning vote. At the center is Democratic Controller Malia Cohen, who sits on the state Board of Equalization — which oversees fee collection and tax administration issues. Cohen broke with fellow Democrats on a 3-2 vote to make Republican Ted Gaines chair of the board, irking members of her own party. “Supporting a Trump-loyalist for the leadership post wouldn’t be my first choice,” California Democratic Party Chair Rusty Hicks said in a statement, adding that he’s “focused on promoting Democrats who deliver for all Californians.” Cohen’s move puts her crosswise with Democrats as she charts her political future. She previously told allies she was considering a run for state treasurer in 2026. She’s said to be standing down on switching offices of late and was still fundraising through a reelection campaign account as recently as last week. But that does not close the door on a run for treasurer in which she’d presumably seek the state party’s endorsement. One Democratic board aide said Cohen's move was not only politically damaging to her, but could also have real-world implications for tax policy. As chair of the equalization board, Gaines will also be awarded one of just three seats on the Franchise Tax Board, an entity with power over myriad tax collection issues in the nation’s largest state. “That’s a big seat that won’t go to a Democrat,” said one Democratic board aide, granted anonymity because they were not authorized to speak publicly.
Gaines will still be part of a 2-3 Republican minority on the equalization board, but Cohen’s support was nevertheless striking in a state where the Democratic supermajority almost always elevates party members to leadership posts on legislative committees as well as state agencies and boards. Her aisle-crossing move seemed to catch even fellow equalization board members off guard. It was “somewhat of a surprise,” Sally Lieber, a Democrat on the equalization board who was seeking another year as chair, told Playbook. “Pardon?!” Republican equalization board member Mike Schaefer exclaimed after Cohen voiced her support for Gaines ahead of the vote earlier this week. Democratic equalization board member Antonio Vazquez voted for Lieber to stay in power. So too did Lieber, who said she had not been considering another year as chair until the November election. “Although not in office yet, former President Trump has already called for a shutdown of the federal government,” Lieber told Playbook. “We don't know yet what we're going to be facing, but the signs are not good, and I just think that we have to all be pulling in the same direction.” Cohen meanwhile praised Gaines and said he deserved a year atop the equalization board.
“Historically, the Board of Equalization has elected the Chair among members regardless of party affiliation,” Cohen told Playbook in a statement. “While I may not agree with Mr. Gaines on every issue, he has provided critical leadership on several significant property tax matters. We believe in working across the aisle at the BOE and I look forward to continuing to work with all of my colleagues on the Board in 2025.” GOOD MORNING. Happy Friday. Thanks for waking up with Playbook. You can text us at 916-562-0685 — save it as “CA Playbook” in your contacts. Or drop us a line at dgardiner@politico.com and bjones@politico.com, or on X — @DustinGardiner and @jonesblakej. WHERE’S GAVIN? Traveling out of the state.
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