Orange County Democrats Exceed Expectations

OC Congressional Map via https://ocvote.gov

In a difficult election year, Orange County Democrats helped reduce the Republican House majority to just 5 seats by holding on to two vulnerable Congressional districts and ousting a high profile Republican incumbent.

• Mike Levin reelected – 52.2% (CA-49)
• Dave Min holds Katie Porter’s seat – 51.4% (CA-47)
• Derek Tran defeats incumbent Michelle Steel – 50.1% (CA-45)

Kamala Harris (59.8% to 47.1%) carried the county while winning statewide by substantial margin (20 points). Democrats accomplished these feats while voters were expressing extreme concern about crime (Prop 36 passed 74.5%) and rejected a number of historically favored positions including rent control (lost 36%), minimum wages (lost 38.5%). Also, Adam Schiff lost the county to Steve Garvey by 14,000 votes. He won the state with 58 percent.

OC voters did support ballot issues funding school bonds and climate (53%) and marriage rights (57%). In general, the OC was competitive for the parties and moderate to conservative on the issues.

One reason the county has become competitive for Democrats after a long history of Republican dominance is grass roots organizations. A top organized group in the county is the Democratic Women of South Orange County. With over 500 members they raised and donated more than $170,000 for candidates. Very importantly, they provide a forum for Democratic office holders and seekers, along with a myriad of top presenters. Their meetings regularly attract more than 300 attendees. They are making a difference in the OC.

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Trump’s Agenda Could be Volatile for Market

Donald Trump won the presidency largely on nostalgia for his economic success in his first term. In 2016, he inherited a recovery from the great recession of 2008 and then accelerated it with a substantial tax cut, jawboning down interest rates and lifting some regulatory burden. The Dow rose 10,000 points from 19,000 shortly after his November 2016 election to more than 29,000 in early 2020 (pre-COVID). But, as Joe Biden ends his term, the Dow has crossed 44,000, a spectacular 14,000 point rise during his four years. And the DOW is the laggard index with the NAZ up 32 percent and the S&P up 28, the second year of double digit increases for both.

But Trump’s Day One agenda of tariffs, massive deportations and cuts in federal discretionary spending could have significant costs in terms of economic disruption and inflation. Trump, himself, finally admitted that his program could cause prices to rise. In his Sunday, December 8, Meet the Press interview, when asked about possible high consumer prices from his trade penalties, said, “I can’t guarantee anything. I can’t guarantee tomorrow.”

Although corporate leadership, especially in the financial markets, see mostly positive results from Trumps’ agenda, the construction, agriculture, and hospitality industry have all predicted significant impact on their costs from mass deportations of undocumented workers. And most economists still predict a bad effect from more tariffs and the possible trade war they initiate.

The latest consumer price index report is up (2.7%) confirming inflation is not yet tamed and the Federal Reserve faces difficult decisions on keeping the current rate or continuing to lower it. The American economy is entering a volatile 100 days as Trump launches his administration.

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There Will Be Blood

First day of Legistlative Session 2023 | Photo: Hugh Carey, The Colorado Sun

The headlines tell the story, “There Will Be Blood,” Senator Jeff Bridges, chair of the JBC is quoted in Denver Axios in a report of the state budget with a $1 billion gap and draconian cuts expected. Denver just passed a restrained budget without their usual amendments for add-ons from City Council.

• State and local governments cut 2025 budgets. Colorado budget writers warn “There will be blood”. (Axios 12-2-24) “Denver Mayor Johnston unveils slim spending plan for city”. (Axios 9-12-24)

This restraint is not a surprise. Recent reports highlight factors contributing to Colorado’s and the Denver metro area’s new fiscal reality:

• Population growth slowed dramatically since 2020. “Coloradans are making fewer babies and migration can’t be counted on to fill the gap”. (Denver Post 11-18-24)
• Metro area and state sales tax revenue stopped growing in 2023 and is now below last year - “Sales tax recession”. (Ciruli Buzz 11-14-24) This is within the context of a myriad of recent local government tax and wage rate increases. ”Is Johnston’s tax in trouble?” (Ciruli Buzz 9-12-24)
• Jobs growth in Colorado slowed in 2024. “Colorado’s job picture weaker than previously known.” (Axios 8-22-24)
• Federal dollars from COVID relief have ended and the Trump administration promises a new austerity and even cuts. End of federal COVID money means shortfalls for states and schools. (Governing 2-2-24)

Persons and groups planning new taxes and expenditures in 2025 will have a difficult environment.

Democrats’ Missteps Move Public Opinion Against Immigration

Ellis Island Immigrants | Photos: NYC Public Library

The White House and much of the Democratic Party establishment support of a chaotic and inadequate border policy since 2021 helped lead to a flood of migrants, which was not firmly addressed until too late in 2024.

Not only did the White House gridlock provide the top issue Donald Trump used for his political recovery and final campaign, but new polls show public opinion, including among Democrats, has moved firmly against immigration. A sad legacy for Joe Biden and the Open Border, human rights advocates who captured a policy for their clients and ignored the political cost.

The latest Gallup poll captures the massive shift in political opinion which started in 2022. In 1920 and 21, opinion was closely divided across increasing, decreasing, or keeping the same level of immigration. “In your view, should immigration be kept at its present level, increased or decreased?” The public is now more than 3 to 1 in favor of decreased immigration above increased. The 55 percent majority that want immigration reduced is the highest since 2001.

The change is impacting all voters, with 88 percent of Republicans for a decrease (up 15% from 2023), independents now 50 percent for a decrease (up 11% since last year) and 28 percent of Democrats (up 10 percent from 2023).

It provides the political leverage for the incoming Trump Administration to seriously advocate a near shutdown of immigration, massive deportation (potentially millions) and 25 percent tariffs.

KOA Election Night Coverage

The 2024 presidential election was slated to be close but became a Donald Trump and Republican sweep.

850 KOA live coverage and analysis of the early returns Tuesday, November 5, highlighted the difficult night Kamala Harris and Democrats were likely to have. Managing the booth for iHeartMedia was executive producer Ryan Schuiling directing field reports and guest interviews, including Senators John Hickenlooper and Michael Bennet. Kathy Walker, news director, Jeana Gondek, morning host, and Ross Kaminski, talk show host provided reports and analysis.

By 8:30 p.m., the pattern was set as states were called for their electoral votes and U.S. Senate races. My analysis during the broadcast:

• Polling showed Democratic weakness with the Hispanic/Latino community and the early-reported, massive Dade County and Florida votes for Trump, was ominous for Democrats.
• Weakness in the Wisconsin returns for Harris highlighted the Blue Wall was fragile and Trump could win at least 5 battleground states. He won all seven.
• When Sherrod Brown lost his Ohio Senate seat, it became clear the Republican strength would affect down ballot races. At least six senate seats were in play. Republicans won 4 along with the House of Representatives.
• The highly competitive 8th Congressional District remained within a few thousand votes. Field reports observed both camps were hopeful but stressed, and went home as the snow piled up Tuesday night. By Saturday late votes gave the win to Republicans.
• Voters picked their way through a long and complicated ballot. Liberals in Colorado were pleased abortion and gay rights did well on the statewide ballot but the law and order position on parole, bail, and police funding dominated. Also, the Mayor of Denver lost his $100 million tax increase for housing. Statewide and Denver voters rejected bans of lion hunting, fur sales and a slaughterhouse. Finally, the multimillion dollar campaign for election reform failed.

The 2024 national election was a major shock for Democrats and much of the political/cultural establishment. America has entered a new political era and major changes are coming.

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