Tom Steyer nearly ran against Gavin Newsom in 2018. Together, can they save California?

“You give me your finance team, give me the controller, and give me your department heads, and give me 48 hours, and I’ll come up with them.”

Gavin Newsom, then California’s lieutenant governor, uttered these words in early 2012 after a KQED reporter asked him what solutions he would propose to solve the state’s $27 billion budget deficit. Newsom arrogantly asserted that he could do a better job than Gov. Jerry Brown, who was then struggling mightily to save the state.

In 2020, Gov. Newsom’s bluff is being called. But faced with an unprecedented economic downturn due to the coronavirus pandemic, he has wisely decided to seek help from rivals and predecessors – including Brown.

On Friday, Newsom unveiled his new Task Force on Business and Jobs Recovery. It includes Brown, along with former governors Gray Davis, Arnold Schwarzenegger and Pete Wilson. It’s the smartest move he’s made since issuing the statewide stay-at-home order that likely saved thousands of lives.

By enlisting these ex-governors, Newsom accomplishes two things. First, he gets the benefit of their knowledge and experience. Second – and just as important – Newsom’s move gives the public a sense of unity and security. It lets people see California’s former governors pulling together in a moment of crisis, not as Democrats or Republicans, but as experienced leaders with a vested interest in our common future.

The economic toll of the coronavirus shutdown will devastate the state budget, bringing a painful end to California’s all-too-brief era of stability and surplus. It’s not yet clear whether this will be a recession or a depression, but most observers agree that the state’s multibillion-dollar reserves will evaporate. This historic downturn will exacerbate poverty and homelessness – and could stoke public anger if Newsom responds ineptly.

So, Newsom is smart to call on the collective knowledge of his predecessors. The panel to revive the state’s economy also taps the talent of prominent business leaders, including Apple CEO Tim Cook and Disney Executive Chairman Bob Iger.

Most interesting, however, is Newsom’s choice of Tom Steyer to lead the 80-person group. Steyer and Newsom circled each other warily for years as the billionaire philanthropist pondered a 2018 run for governor. He decided against it, then ran a quixotic 2020 presidential campaign.

I previously worked as an advisor to Steyer and never thought much of his electoral chances. But there’s no question that he has the best of intentions, an indefatigable work ethic and a deep knowledge of economic matters. During the 2020 race, he argued that his business background made him the best candidate to challenge Trump on the economy. Now, he’ll get a chance to prove it by helping Newsom save California.

The world of Golden State politics is small, and this task force proves it. Newsom’s current chief of staff, Ann O’Leary, will co-chair the group with Steyer. She previously worked with him at the Center for the Next Generation, a nonprofit focused on economic issues. Angela Glover Blackwell, founder and leader of PolicyLink, served on Steyer’s California Fair Shake Commission on Economic Inequality. Steyer convened the commission in 2015 to propose solutions for remaking California’s economy. Ana Matosantos, now Newsom’s cabinet secretary, helped author the commission’s 2017 report – as did I.

If Steyer had run for governor, his platform might have looked a lot like the Fair Shake report. It argued for strong public investments in education, housing and childcare to grow the middle class and solve economic inequality. The world has changed dramatically since then, and the new task force’s approach must shift to fit the current reality.

Newsom’s announcement provided some positive news after a rocky week that included an Associated Press story detailing how his actions don’t always live up to his words and a cringe-worthy ventilator fiasco involving Tesla CEO Elon Musk. It also comes one week after Newsom’s chief economic advisor, Lenny Mendonca, abruptly resigned late on a Friday.

Mendonca’s sudden departure was a troubling sign, but Newsom’s “team of rivals” task force is the perfect riposte. The big question: Will this body have real power and purpose, or is it just another publicity stunt that’s bound to fizzle?

It’s too early to tell, but one thing’s certain: This job will take more than 48 hours.

This story was originally published April 18, 2020 at 5:00 AM with the headline "Tom Steyer nearly ran against Gavin Newsom in 2018. Together, can they save California?."