DISPATCHES FROM THE BLUE ZONES: Quixote Studios Lays Off 70, Winds Down L.A. Locations Amid Production Slump.

Hudson Pacific Properties bought the company in 2022 for $360 million, but has since had to write down the entire value of its Quixote unit due to heavy operating losses.

“Obviously, clearly it was not the best deal we’ve ever done, but if you compare that to everything else we’ve done, then we’re doing okay,” said Victor Coleman, the chairman and CEO of Hudson Pacific, at an investor conference in March. “We think that we have multiple alternatives with that asset that we can make it zero or at least flat at the end of the year.”

Quixote is kind of a big deal in L.A., where film and TV production jobs are down something like 40% from post-COVID highs.

Previously: Hollywood Is Sick — but It’s L.A. That’s Dying.

HILL AIDES SEE MISCONDUCT? Well, assuming the latest CNCT Capitol Pulse survey is indicative of the actual situation, it appears few aides working on Capitol Hill claim to have seen sexual misconduct by anyone on the congressional campus. Check it out on HillFaith.

NYC Mayor Mamdani’s latest pitch to tax the rich “not happening,” Gov. Kathy Hochul says.

The budget battle between New York City and New York state lawmakers is intensifying.

New York City Mayor Zohran Mamdani and City Council Speaker Julie Menin are calling for a new way to tax the rich. They want the state to reduce something called the Pass-Through Equity Tax credit, aka PTET.

“The PTET is essentially a loophole that allows high-income earners to reduce their federal tax burden,” Mamdani said.

Menin joined the mayor in calling for the new revenue stream, which could mean another $1 billion to help close the city’s budget gap.

Gov. Kathy Hochul slammed the door on their proposal.

“That’s not happening,” Hochul said. “We are not changing PTET.”

Hochul seems smarter than Mamdani in that she knows when the sheep won’t take any more fleecing.

HIGHER EDUCATION BUBBLE UPDATE:

WHEN THEY TELL YOU WHO THEY ARE…:

HMM: United flight from SFO disrupted by ‘possible drone strike.’ “The pilots aboard United flight 1980 reported the strike prior to arriving at San Diego International Airport around 8:30 a.m. The airline said the flight landed safely and the 48 passengers deplaned without interference. A maintenance check found no damage on the aircraft.”

OPENAI BATTLE:

KRUISER’S MORNING BRIEFING: The Democrats’ Gerrymander Gloating Hits a Brick Wall. “Democrats have been operating ‘under the cover of civil rights law’ to racially gerrymander themselves into Congress. Our new junior senator from Arizona — Ruben Gallego — got his start in Washington by being elected to the House of Representatives from one such district. SCOTUS righted a wrong, and the Dems are apoplectic. Expect the progressive ‘pack the court’ talk to get louder now.”

NARRATIVE: TRUMP IS THE MOST UNPOPULAR PRESIDENT IN HISTORY!

Reality:

THE ELECTION OF BARACK OBAMA WAS A TRAGEDY FOR THE NATION ON MANY LEVELS:

WELL, GOOD: Biden-Era ‘Gun Dealer’ Rule Dead.

Decisions by decision, the Trump47 Administration is sweeping away un-American Biden regulatory overreach. A lot of us may be frustrated by the pace of change, with things that should have been overturned in 2025 still lingering on into this year. But the aircraft carrier of state can take quite a while to turn.

Case in point: A Biden-era ATF proposal to make ordinary American citizens register as gun dealers if they want to sell a single gun, a rule the Department of Justice finally stopped trying to defend.

The administration doesn’t always start off on the right foot on gun policy, but they usually come around.

K-12 IMPLOSION UPDATE:

CORN, POPPED: