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Barack Obama urges California to ‘save democracy’ via Prop. 50

California Gov. Gavin Newsom poses for a photo with an attendee during the second day of the Democratic National Convention at the United Center in Chicago on Tuesday, Aug 20, 2024.
California Gov. Gavin Newsom poses for a photo with an attendee during the second day of the Democratic National Convention at the United Center in Chicago on Tuesday, Aug 20, 2024. USA Today

Good morning and welcome to the A.M. Alert!

OBAMA ENTERS THE PROP. 50 FRAY

Former President Barack Obama is the latest Democrat to throw his weight behind Gov. Gavin Newsom’s redistricting plan, following New York Rep. Alexandria Ocasio-Cortez and Speaker Emerita Nancy Pelosi.

On Tuesday, the Yes on Prop. 50 campaign aired an ad featuring Obama looking directly into the camera and claiming the U.S. is “counting on” Californians to approve a map on Nov. 4 that would shore up five Democratic seats in the 2026 midterms.

“Republicans want to rig the next election and wield unchecked power for two more years,” he says as images of President Donald Trump and immigration officials overlay onscreen. “With Prop. 50, you can stop Republicans in their tracks.”

“Listen to @barackobama,” Newsom wrote on social media.

The anti-redistricting side, which is split into two camps, has tapped a few powerful Republicans for help, but has not commanded the same level of star power. Former Gov. Arnold Schwarzenegger has come out against Prop. 50, but has not run any ads.

Newsom says allowing California to redistrict would offset similar GOP-led efforts elsewhere and stop Congress from enabling Trump’s destruction of democracy. The Democrats adopted an identical message during the 2024 election which former Vice President Kamala Harris lost to Trump.

Newsom told a Bee reporter in a recent Prop. 50 endorsement interview that he doesn’t see it as a losing strategy, saying the Pentagon’s illegal seizure of the National Guard to suppress protests in Los Angeles and Portland, and universities and businesses capitulating to Trump’s demands are all existential threats.

“Everybody talks about, ‘Let’s focus on the kitchen table issues.’ That’s what we do every single day,” Newsom said. “But look, the bottom line is, there are no kitchen tables when he’s (Trump) burning down the house.”

TECH WORKERS DRIVING STRONG CA TAX REVENUE

Via William Melhado

California’s tax revenue in recent months is well-above projections made earlier this year, according to preliminary data from the state’s tax agency, which one expert says is largely due to the rapid growth of artificial intelligence companies.

State income tax withholding for September, which is the amount employers pay California on their workers’ behalf, was nearly $1 billion above what was expected in the 2025-26 Budget Act.

“This amounts to an astonishing 19 percent growth above the prior year level,” the nonpartisan Legislative Analyst’s Office wrote in an October report.

Chas Alamo, a principal fiscal and policy analyst with the LAO, said those higher-than-expected tax collections have a clear source.

“Recent collections are being driven by enthusiasm for artificial intelligence (AI), which has pushed the stock market to record highs and thereby boosted equity-based compensation for the state’s technology workers,” Alamo said in a statement.

Alamo noted that last year his office estimated that California’s tech workers’ equity-based compensation, which excluded base salaries, accounted for as much as 10% of the state’s total tax withholdings. That number has continued to increase in 2025. Alamo said as much as half of the growth in income tax collections could be attributed to tech workers’ equity-based pay, which continues growing alongside their companies’ share prices.

Some economists have raised concerns that the rapid growth of AI companies could be an economic bubble.

State Controller Malia Cohen’s monthly cash report showed that California’s cash inflow since the beginning of the fiscal year in July is $4.5 billion, or 9%, higher than budget projections.

“California is through the first quarter of its fiscal year with revenues ahead of budget expectations,” Cohen said in a statement. “While this is welcome news, the state still faces a structural deficit amidst global economic uncertainty.”

QUOTE OF THE DAY

“No civilized country can endure a culture where open debate is met with gunfire, the pursuit of truth is met with bloodshed, and love of country is met with seething hatred.”

-President Donald Trump declaring Tuesday “National Day of Remembrance for Charlie Kirk”

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This story was originally published October 15, 2025 at 4:55 AM with the headline "Barack Obama urges California to ‘save democracy’ via Prop. 50."

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Lia Russell
The Sacramento Bee
Lia Russell covers California’s governor for The Sacramento Bee’s Capitol Bureau. Originally from San Francisco, Lia previously worked for The Baltimore Sun and the Bangor Daily News in Maine.
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