POLICY WATCH – January 2026
In This Issue
Message from CEO
Nominate a Leader of the North Bay- Applications Open and Easy to do Online
Nominate a Teen Leader!! Do You Know an Outstanding Teen?
Billionaire Wealth Tax- Why it Won’t Work
San Francisco’s Childcare Subsidy- Viewpoint from a Missing Middle Family
Upcoming Events:
5th Annual North Bay Housing Action Summit, March 5th
Save the Date: Leaders of the North Bay Award Luncheon, April 24th
Members in the News
Like all of you, we’ve been following the recent news and recognizing how deeply current events are impacting people and communities nationwide. It’s hard to ignore. Regardless of personal beliefs or political views, there are moments that call on us to pause as people, employers, and community leaders. Lives are being lost, families are being affected, and uncertainty is felt across communities. These realities matter not only on a human level, but because stability, trust, and safety are essential to a functioning economy and a strong workforce.
At NBLC, we believe leadership means responding to difficult moments with empathy and a commitment to constructive engagement. The business community plays an important role in supporting safe, resilient communities and in fostering dialogue that brings people together rather than pulling them apart.
As we move forward, we remain focused on solutions that strengthen the North Bay, support employers and workers, and reinforce the shared values that allow our region to live, work, and grow together.
Best Regards,
Joanne
Leaders of the North Bay Awards Nominations are Open. It’s Easy. Click Here to Submit Online.
North Bay Leadership Council annually honors outstanding organizations, individuals and teams for their leadership in contributing to the prosperity and quality of life in Sonoma, Marin, and Napa Counties. Please fill out the online form and include a written statement to get your leader nominated today! You are welcome and encouraged to upload additional information about your leader. Please let us know why they deserve to be recognized as a Leader of the North Bay.
NEW - Nominate a Youth Leader. It’s Easy. Click Here to Submit Online.
Make a Difference in a Young Leaders Life. Support NBLC’s teen leaders through scholarships! This year, we will be recognizing young leaders at the Leaders of the North Bay awards luncheon for their exceptional service in various areas including community building, environmental stewardship, innovation, and leadership in advancing equity. With your support, NBLC can award more teens. Do you work with or know an amazing teen that deserves this award and should be celebrated? Nominate them today. Please feel free to share widely with teachers, coaches and neighbors.
One-time Wealth Tax Would Be a Problem for our State:
Just when Californians thought the tax conversation couldn’t get any more crowded, a familiar proposal has stepped back onto center stage: a one-time wealth tax aimed squarely at the state’s billionaires. Cheered on by organized labor and national progressive leaders as a fast way to fund urgent public needs, the idea has undeniable populist appeal. But it has also prompted a collective raising of eyebrows from business leaders, economists, and even some state officials, who note that similar experiments elsewhere have produced less revenue than promised and more moving vans than expected. As the debate resumes, the opinion piece below takes a clear-eyed look at whether a policy designed to make a political point can also make economic sense for a state that depends on investment, innovation, and long-term growth to support the priorities we all share.
Justin T. Callais, chief economist at the Archbridge Institute shares his view in this opinion piece; “California is considering a one-time 5% percent wealth tax on billionaires in the state, courtesy of the Service Employees International Union.
Rep. Ro Khanna, a Democrat who represents Silicon Valley, has been a key supporter of the proposal. Other national figures are endorsing the SEIU’s policy proposal, most notably independent Sen. Bernie Sanders of Vermont.
The proposal targets a tiny group of the mega-elite, with proponents claiming it can be used to fund health care and education initiatives in the state. But, before California voters buy into this ‘quick fix,’ they should look across the Atlantic.
Many European countries have been down this road before, and it has only led to capital flight and even more unsustainable budgetary issues. Nine European countries have repealed their wealth taxes; only three European countries still implement one.
Take France, for example. The country had a wealth tax from 1982 to 2017, and government officials reported that over 10,000 millionaires worth a combined 35 billion euros left the country. French economist Eric Pichet estimates that the proposal did raise 3.5 billion euros a year; however, the government lost 7 billion euros from capital flight.
More recently, Norway experienced its own issues. Over 30 Norwegian billionaires and mega-millionaires left the country in 2022 more than the previous 13 years combined. The plan was similar to California’s proposal. The proposal was expected to raise $146 million in new revenue; however, over $54 billion of capital left the country, leading to a net loss of nearly $450 million.
There are many core issues with this policy. First is a practical one: Within a country, it is incredibly easy for people to ‘vote with their feet’ and move to places that align with their preferences. In 2023, the Census Bureau estimates that nearly 7.5 million people moved from one state to another. Research suggests that people tend to move to places with lower taxes and a blossoming entrepreneurial environment.
Millions of people move a year, but it is even easier for the ultra-rich to move as residents, making California’s policy proposal a fool’s errand. Billionaires are disproportionately more likely to have secondary (or more) residences, making the idea of claiming residency in one state quite simple.
California is already hemorrhaging high-quality talent because of the state’s regulatory and tax policies. California’s tax scores find the state as the third most burdensome in the country, according to the Tax Foundation. Corporate, individual income and sales taxes consistently rank in the bottom 10 in the country. And the Census Bureau found that California had a domestic net out-migration of more than a million from 2020 to 2024.
Among those who have already said they are leaving California are two of the richest people in the world: Elon Musk and Larry Ellison. Another layer of tax complexity will only further drive California’s tax base to greener pastures.
In response to the new proposal, billionaires Peter Thiel and Larry Page have threatened to leave the state. Khanna subsequently and sarcastically posted to X that he will ‘miss them very much.’
However, if more billionaires do leave, Khanna and other California lawmakers will surely miss them, since they are the exact tax base that is needed to fund this proposal. California thrives on innovation and venture capital fueled by visionaries like Page and Thiel, and billionaires are among the largest benefactors for social and charitable causes.
Even Gov. Gavin Newsom opposes this proposal. He understands that billionaire threats are not bluffs, but rather almost a certainty given Europe’s failed track record in this regard. This won’t just impact tax revenues; it will cause a ripple effect on business, philanthropy and a further exodus of capital to friendlier states.”
Does Mayor Lurie’s Childcare Plan Come with a Catch? Hear One Parent’s Story:
If the health of our economy can be measured by the size of a parent’s smile on the first day of daycare, then San Francisco’s newly expanded childcare subsidies just delivered a collective grin across thousands of households. Mayor Daniel Lurie’s plan to offer free childcare to families earning under $230,000/year with scaled support beyond that threshold confronts one of the Bay Area’s most persistent affordability challenges head-on, easing the crushing cost burden that once forced too many parents to make impossible choices about work and family life.
Here in the North Bay, where families are squeezed between soaring housing costs and childcare expenses, the economic case for accessible early care has never been clearer. The region’s workforce challenges including stagnant job growth, fewer working families, and a shrinking labor force participation rate threaten long-term prosperity unless we address the barriers that push parents out of the workforce. Accessible childcare doesn’t just benefit families, it keeps skilled workers in the region, boosts productivity, and helps employers recruit and retain talent in a tight labor market.
Of course, a great plan is only as effective as its execution. Stakeholders from providers to parents have already flagged capacity concerns and the limits of one-time funding in Lurie’s plan. These are important conversations as we work toward a future where every child has access to enriching care from day one. But as any parent will tell you, the first step toward that future is making sure families aren’t priced out of taking it in the first place.
Below is one parent’s story:
“Thanks to Lurie, my baby will get free child care. But the plan comes with a catch.
The mayor’s new subsidy promises relief for a huge number of San Francisco families if the city can pull it off,” by Joe Fitzgerald Rodriguez, The San Francisco Standard.
Events:
5th Annual North Bay Housing Action Summit Hosted by Generation Housing
March 5, 2026 | 1:00 – 5:30 PM, (reception from 4:30 to 5:30)
Location: The Backdrop 1455 Corporate Center Parkway, Santa Rosa
Register Here: 2026 Housing Action Summit
Save the Date: Leaders of the North Bay Awards Luncheon
Friday, April 24th, 11:30am-1:30pm
Location: The Jonas Center, College of Marin, Novato
Sponsorship opportunities still available. Contact us today!
(707) 283-0028 or info@northbayleadership.org
Members in the News
SMART Board Recommends Calling Election for Tax Renewal Pitch
A proposed 30-year extension of a sales tax that provides approximately $51 million annually for Sonoma-Marin Area Rail Transit cleared another hurdle this week.
Recology Sonoma Marin and Other North Bay Waste Haulers Weigh in on Proper Disposal Methods
Current regional compost facilities aren’t able to process the materials in most compostable plastic bags, even if they’re certified as biodegradable, according to the website for Recology, the garbage hauler for the majority of Sonoma County.
Sonoma County Board of Supervisors Approves 2026–2031 Measure I Funding Allocations
First 5 Sonoma County, an independent public agency, developed the plan in partnership with parents, providers, and community leaders, including the Board-appointed Measure I Community Advisory Council, expanding on First 5’s long-standing efforts to promote optimal child development while seizing and maximizing new opportunities.
Burbank Housing and Partners Break Ground on Dry Creek Commons in Healdsburg
Burbank Housing, alongside the City of Healdsburg, Sonoma County, and California Housing & Community Development (HCD), has broken ground on Dry Creek Commons at 155 Dry Creek Road in Healdsburg.
Buck Institute for Research on Aging Study Points to Changes in Immune Cell Composition as a Driver of Epigenetic Aging in Response to Spaceflight
The research sets the stage for testing potential anti-aging interventions for those of us who have no plans to travel in space.
BioMarin Pharmaceutical Inc. Wins CVNL Heart of Marin Award for Corporate Community Service
The Corporate Community Service Award is presented to a business that has fostered and encouraged volunteerism and philanthropy among its employees. The 2025 Heart of Marin Award for Corporate Community Service was presented to BioMarin Pharmaceutical.
Congratulations to all NBLC Members Nominated for a CVNL Heart of Marin Award
For more than three decades, the Heart of Marin Awards has been the premier celebration of the individuals, businesses, and nonprofits who make Marin a healthier, more compassionate, and resilient community.
Redwood Credit Union Welcomes Jay Tkachukas Chief Information Officer
Jay Tkachuk has joined Redwood Credit Union (RCU) as Chief Information Officer. In his role, Tkachuk leads the IT organization, scaling transformative ideas into enterprise-wide impact and developing and implementing cutting-edge technology solutions that meet the evolving needs of RCU’s Members and team members.