Alex Madison | May 9th, 2016
What’s Next?: California’s Legislative and Regulatory World

What’s Next? is pleased to interview Matt Klink, one of California’s savviest public affairs strategists and a partner in the Los Angeles-based government and public affairs firm Ek, Sunkin, Klink, and Bai.
Matt, what happens in Sacramento doesn’t always stay in Sacramento and, in fact, often travels eastward to state capitals and to Washington, D.C. Why is that and do you see any change in that trend?
Klink: I do not see any change in trends starting in Sacramento and traveling east, particularly because of the liberal or progressive bent of the entire state of California. Democrats control every single statewide office, both houses of the legislature by large majorities, and it has become a progressive experiment laboratory for such things as the $15 minimum wage and six days of paid sick leave in the city of Los Angeles. On energy, they also have a robust cap and trade program that is generating a lot of money for the state but is one of the primary reasons that Californians pay some of the highest gas prices of any in the country. Active labor unions will probably become more so depending on what happens in Washington. D.C., this November. So I think the trend of California leading the way, if you will, is only going to get more pronounced.
So what in your mind are two or three of the biggest issues confronting the business community in Sacramento right now?
Klink: Right now the business community faces a couple of issues that come to the forefront. One is simply the cost of doing business in California. There is so much red tape whether it™’s at the local level, or the state level, all the way up to the federal level. Plus the highest fuel prices in the nation, or the continental United States, Hawaii pays more but they are literally an island. High tax rates overall on many things make the cost of doing business in California very significant. High labor costs don’t help either.
Speaking of significant, the referenda situation in California continues to escalate. What does this election cycle look like?
Klink: So for November 2016, the California ballot will be exceptionally long. We could have as many as 15 initiatives on the statewide ballot. That™’s due in part to the low number of signatures required to qualify for the ballot and to the fact that the legislature and governor decided to put everything on the November ballot because they assumed turnout would be higher in a presidential year.
California voters will likely see multiple tax increases, efforts to legalize marijuana in the state of California, prescription drug pricing that would be negative for the pharmaceutical industry with limited consumer benefit. Multiple initiatives make for a long, complicated ballot and will likely lead to significant ballot drop off, meaning voters who vote at the top for president and our first competitive Senate race since the early 90s but will not make it to the bottom of the ballot. So we still could have a low turnout election for some of the initiatives at the bottom of the ballot. But very significant (and costly) tax measures will be on this ballot.
If you were counseling a client, what is the single thing you would advise them to do to protect or inoculate themselves in Sacramento.
Klink: We tell our clients, specifically those who want to come and build a bigger footprint in California, that doing so takes time – you have to come and build relationships. You know, what Tip O’Neill said – “All politics are local†– remains true.
You need to be on the ground in the communities where you want to do business. That™’s what the legislators expect – that™’s what they demand, because you have to know what the people are saying and doing. You can’t fly in and spend a lot of money quickly and expect to influence a decision. It takes time and it takes commitment and staying power because that™’s what the legislators need in their districts. They want long-term jobs and stability; they want to build relationships with companies that have good corporate social responsibility programs. So we counsel clients to think long term not short term.
Alex Madison | May 9th, 2016
What’s Next?: California’s Legislative and Regulatory World

What’s Next? is pleased to interview Matt Klink, one of California’s savviest public affairs strategists and a partner in the Los Angeles-based government and public affairs firm Ek, Sunkin, Klink, and Bai.
Matt, what happens in Sacramento doesn’t always stay in Sacramento and, in fact, often travels eastward to state capitals and to Washington, D.C. Why is that and do you see any change in that trend?
Klink: I do not see any change in trends starting in Sacramento and traveling east, particularly because of the liberal or progressive bent of the entire state of California. Democrats control every single statewide office, both houses of the legislature by large majorities, and it has become a progressive experiment laboratory for such things as the $15 minimum wage and six days of paid sick leave in the city of Los Angeles. On energy, they also have a robust cap and trade program that is generating a lot of money for the state but is one of the primary reasons that Californians pay some of the highest gas prices of any in the country. Active labor unions will probably become more so depending on what happens in Washington. D.C., this November. So I think the trend of California leading the way, if you will, is only going to get more pronounced.
So what in your mind are two or three of the biggest issues confronting the business community in Sacramento right now?
Klink: Right now the business community faces a couple of issues that come to the forefront. One is simply the cost of doing business in California. There is so much red tape whether it™’s at the local level, or the state level, all the way up to the federal level. Plus the highest fuel prices in the nation, or the continental United States, Hawaii pays more but they are literally an island. High tax rates overall on many things make the cost of doing business in California very significant. High labor costs don’t help either.
Speaking of significant, the referenda situation in California continues to escalate. What does this election cycle look like?
Klink: So for November 2016, the California ballot will be exceptionally long. We could have as many as 15 initiatives on the statewide ballot. That™’s due in part to the low number of signatures required to qualify for the ballot and to the fact that the legislature and governor decided to put everything on the November ballot because they assumed turnout would be higher in a presidential year.
California voters will likely see multiple tax increases, efforts to legalize marijuana in the state of California, prescription drug pricing that would be negative for the pharmaceutical industry with limited consumer benefit. Multiple initiatives make for a long, complicated ballot and will likely lead to significant ballot drop off, meaning voters who vote at the top for president and our first competitive Senate race since the early 90s but will not make it to the bottom of the ballot. So we still could have a low turnout election for some of the initiatives at the bottom of the ballot. But very significant (and costly) tax measures will be on this ballot.
If you were counseling a client, what is the single thing you would advise them to do to protect or inoculate themselves in Sacramento.
Klink: We tell our clients, specifically those who want to come and build a bigger footprint in California, that doing so takes time – you have to come and build relationships. You know, what Tip O’Neill said – “All politics are local†– remains true.
You need to be on the ground in the communities where you want to do business. That™’s what the legislators expect – that™’s what they demand, because you have to know what the people are saying and doing. You can’t fly in and spend a lot of money quickly and expect to influence a decision. It takes time and it takes commitment and staying power because that™’s what the legislators need in their districts. They want long-term jobs and stability; they want to build relationships with companies that have good corporate social responsibility programs. So we counsel clients to think long term not short term.
- Brand
- Apology Mania Sweeps the Nation
- Risk Management in a Cancel Culture
- Amazing Grace
- Meet Nancy Pelosi
- Delta Airlines and the Georgia Voting Controversy
- Richard Levick on Volkswagen’s April Fool’s
- The Final Episode of M*A*S*H
- Should Companies Consider Appointing Chief Paranoia Officers to Combat Disinformation?
- Can Capitalism Really Be “For Humanity?”
- The Fifth Estate: A Business Guide for Surviving “The Troubles”
- Here We Come
- Corporate Revolt Over Campaign Donations Shakes Political World
- Communications
- Apology Mania Sweeps the Nation
- Risk Management in a Cancel Culture
- Amazing Grace
- Corporate Leadership in an Age of Unrest
- Ten Rules For Corporations And Social Issues
- Delta Airlines and the Georgia Voting Controversy
- Developing a Crisis Management Program
- “I Never Felt as Unsafe as I Did That Day”
- How America Scores Changes Youths Through Soccer and Poetry
- Everyone Gets Disrupted
- The Politics Industry
- Look
- Company News
- The Final Episode of M*A*S*H
- Reflections on a Turbulent Year: 2020
- Here We Come
- Recent Awards & Recognition
- Won’t You Be My Neighbor?
- What’s a Director to Do?
- LEVICK Announces Partnership with BCG
- A New Look
- Albert Krieger, 1923-2020
- LEVICK Announces Partnership with Jipyong
- Speaking to In-House Counsel
- Childhood Lessons
- Crisis
- Apology Mania Sweeps the Nation
- Risk Management in a Cancel Culture
- Amazing Grace
- Corporate Leadership in an Age of Unrest
- Ten Rules For Corporations And Social Issues
- Meet Nancy Pelosi
- It’s War: The New Dilemma for Corporations and Social Issues
- Matt Gaetz’s Strategic Struggle Makes Him a Target
- Delta Airlines and the Georgia Voting Controversy
- A Call for Elected Officials to Protect Voting Access
- Richard Levick on Volkswagen’s April Fool’s
- Developing a Crisis Management Program
- Finance
- The World of Financial Crimes with Tom Ajamie
- Can Capitalism Really Be “For Humanity?”
- GameStop: The Buck Starts Here
- Here We Come
- The Threat to Free Markets
- Advisory & Insurance Services
- WATCH: Revolutionizing Litigation Finance
- Litigation Finance: Revolutionizing Litigation
- Consumer-Focused Solutions for Financial Health
- Event: Consumer-Focused Solutions for Financial Health
- Sports: Power and Money in a New Age of Social Justice
- The Balancing Act: The Role of Whistleblowers in American Commerce and Government
- Guest Column
- Guest Blog: The Mainstream Media Gets an A for Intellectual Arrogance, an F for Journalism
- Buckle up Directors: Cybersecurity Risk and Bankruptcy Risk Are Not Mutually Exclusive
- Buckle up Directors: Cybersecurity Risk and Bankruptcy Risk Are Not Mutually Exclusive
- South Africa: The Slow Decline of the ANC
- Why CSR Fails and How to Fix It
- What to Expect Following the European Elections?
- Buhari Inaugurated. What Now for Nigeria?
- Marketing- It’s Up To You…
- Crisis Management lessons from the air-crash investigation model
- The Future of War
- Health
- Reflections on a Turbulent Year: 2020
- Food Issues & the Biden Administration
- Covid-19: The Pandemic that Never Should Have Happened
- Pharma’s Post-Pandemic Policy Outlook
- Keeping Hope Alive
- Real Herd Immunity
- The Fiction of College Sports Amateurism
- Mac Summit: Crisis Communications in a Post-Covid, Post-Election World
- Travel Industry Communications in the Age of Covid-19
- Track of Time
- Is C-19 Taking Women Lawyers’ Careers Back to the 1950s?
- Post-Pandemic PR Strategy
- In Memoriam
- Snider’s Super Foods: Locally World Famous
- Speak Truth With Love, Not Anger
- In Memoriam: Stephen Susman
- Letter to the Movement
- John Lewis’ Life Bridged the Best of America
- Albert Krieger, 1923-2020
- In Memoriam of Marcia Horowitz
- Jim Lehrer Passes Away
- Martin Luther King, Jr.
- Harold Burson Passes Away
- Interviews
- CommPRO: Ruth Bader Ginsberg’s Life & Legacy
- Richard Levick on “My Wakeup Call”
- Primerus Webinar: Into the Wind
- The Future of Baseball Post-Pandemic
- Webinar: The End of Brand Neutrality
- Thought Leadership & Organic Growth
- Man & Superman
- LEVICK Announces New Webinar Series with Turbine Labs
- Navigating Coronavirus Challenges in the Insurance Industry
- VIDEO: How to Anticipate & Avoid a Crisis
- What’s Next? with Julie Chase
- What’s Next?: California Electoral Behavior
- Law Firms
- Litigators: Your Friend for Hire
- Digital Upskilling in Legal: More Than Just New Technology
- An Insider’s View of the Legal World
- Fighting for the Rule of Law with Marshall Harris
- Why Should I Apologize? Lawyers vs. Communicators
- You Took a PPP Loan. Now Get Ready to Talk About It.
- Beyond Black Swan: Positioning the law firm for the new normal
- A Salute to Personal Courage and the Rule of Law
- Cyber Risk Institute Expands Its Profile
- When a client becomes a law firm’s PR nightmare
- The General Counsel’s Dilemma
- A First Look at the Google Antitrust Suit
- Litigation
- Litigators: Your Friend for Hire
- An Insider’s View of the Legal World
- Buyers’ Guide to In-House Tech
- Fighting for the Rule of Law with Marshall Harris
- Why Should I Apologize? Lawyers vs. Communicators
- A Conversation with Abbe Lowell
- Leveraging Legal Expertise in Communications
- You Took a PPP Loan. Now Get Ready to Talk About It.
- Beyond Black Swan: Positioning the law firm for the new normal
- A Salute to Personal Courage and the Rule of Law
- Cyber Risk Institute Expands Its Profile
- When a client becomes a law firm’s PR nightmare
- Our Work
- Bridging the “Preclinical Gap” in Childhood Cancer Research
- Recent Awards & Recognition
- The Cyber Bad Guys Are Getting Worse
- Crisis Communications & The Age of Cancel Culture
- Standing on the Shoulders of Giants
- Video: Conversations with American Legends
- Staying Ahead of the Crisis
- A New Era of Insurance Marketing
- Infographic: Judgment Free Zone
- Infographic: Barriers to Entry
- Infographic: History Meter
- Assistance for Law Firms Engaged in Pro Bono
- Public Affairs
- You’re the Media and You’re Going to Die
- The Politics Industry
- The Politics Industry with Katherine Gehl
- Real Washington with Former White House Press Secretary Joe Lockhart
- From Shareholders to Stakeholders with Don Springer
- The Regulatory Hall of Fame
- Richard Levick on U.S.-China Relations
- The Price of Courage
- Can Capitalism Really Be “For Humanity?”
- GameStop: The Buck Starts Here
- Impeach, Indict, Heal? A Discussion of Post-Trump Washington
- “Crooked Dominion Machines,” Impeachments, Insurrections & The First 100 Days
- Risk
- Should Companies Consider Appointing Chief Paranoia Officers to Combat Disinformation?
- The Price of Courage
- Ingredients of Decency
- ESG Performance and Credit Markets
- The Coronavirus Saga is Just Beginning
- No. 1 Risk of the Decade
- The Risk Evolution of Corporate Risk
- Extend Risk Management Reach
- Collective Action
- Risk Identifying Software
- The New Risk of Doing Nothing
- Political Unrest In Hong Kong
- Social
- A Call for Elected Officials to Protect Voting Access
- How America Scores Changes Youths Through Soccer and Poetry
- Look
- Should Companies Consider Appointing Chief Paranoia Officers to Combat Disinformation?
- The Price of Courage
- Bridging the “Preclinical Gap” in Childhood Cancer Research
- The Ministry of Common Sense
- How to Stop the Madness
- A Remembrance of Tommy Raskin
- No ‘justice’ in rep’s vote
- A Call for Orderly & Peaceful Transition of Power
- Recovering from the Greatest Sacrifice
- Technology
- Digital Upskilling in Legal: More Than Just New Technology
- Should Companies Consider Appointing Chief Paranoia Officers to Combat Disinformation?
- Bridging the “Preclinical Gap” in Childhood Cancer Research
- 3 Tech Lessons Businesses Must Learn From COVID-19
- Constella Intelligence Announces Hunter for Improved Investigation Capability
- Cyber Risk Institute Expands Its Profile
- Digital Politics: The Future of Voting Technology
- Ethics in Electronics
- The Cyber Bad Guys Are Getting Worse
- A First Look at the Google Antitrust Suit
- The Pause
- Cybersecurity Incidents of the Summer
- This Week
- A Remembrance of Tommy Raskin
- A New Year’s Resolution
- Over the River and Through The Woods
- Dropping the Mic
- Won’t You Be My Neighbor?
- The Cyber Bad Guys Are Getting Worse
- What We Hear
- Track of Time
- Video: Conversations with American Legends
- Conversations with American Legends
- A New Era of Insurance Marketing
- American Legend