Good morning. It’s Wednesday, Dec. 31.
- Forecast calls for more rain to ring in the New Year.
- OpenAI is paying about $1.5 million per employee.
- And the bodies of three hikers are found on Mount Baldy.
Please note: There will be no newsletter Thursday or Friday. Regular programming resumes Monday.
Statewide
1.
No psychiatric hospital chain in California has grown faster than Signature Healthcare Services, which has clinched $230 million in state contracts over the last six years. But as the for-profit provider pursued aggressive business tactics, its facilities faced chronic understaffing. Between 2019 and 2024, 12 deaths at Signature hospitals were linked to deficient care. Dan Shearn quit after two years as director of nursing at Signature’s Santa Rosa hospital, which was repeatedly cited for infractions. “I can’t believe people like this are allowed to own hospitals,” he said. “It was so morally bankrupt.” S.F. Chronicle
2.
Another downpour is expected to close out 2025 in California, reviving mudslide risks and promising a soggy Rose Parade for the first time in decades. With southerly origins, an unusually warm system will sweep into California starting Wednesday, meteorologists said, strengthening to peak intensity on Thursday before dwindling by Friday. A second, colder storm is forecast to arrive by Saturday and focus more on Northern California. Weather West | Accuweather
3.
Law enforcement, including federal agents, will be barred from wearing masks.
Declawing cats will become illegal outside of medical necessity.
The Hindu celebration of Diwali will become an official state holiday.
And grocery store plastic bags will be banned — for real this time.
See a round-up of new laws being enacted in 2026. 👉 S.F. Chronicle | SFGATE
Northern California
4.
OpenAI is paying its employees more than any tech startup in history, by far, an analysis found. The San Francisco company’s stock-based compensation averages roughly $1.5 million per employee across a workforce of about 4,000. That’s 34 times the average employee compensation of 18 other large tech companies in the year before they went public. All told, OpenAI is expected to spend roughly $6 billion on worker compensation in 2025, amounting to 46% of its revenue. Wall Street Journal
5.
San Francisco approved what would be its third tallest building, an 820-foot-tall tower with more than 1,000 homes. The $1 billion project at 10 South Van Ness would be surpassed in height by only the Salesforce Tower and Transamerica Pyramid. Stalled for more than a decade, the proposal for a 67-story tower benefited from new legislation designed to fast-track approvals for projects that include affordable units in a housing market starved for supply. S.F. Chronicle
Southern California
6.
Three men were found dead on Mount Baldy in the San Gabriel Mountains on Monday, officials said. Rescuers headed to the mountain after a hiker reported witnessing his 19-year-old friend fall roughly 500 feet along the treacherous Devil’s Backbone trail. When they arrived, they found two additional bodies. The circumstances were unclear. Mt. Baldy is notoriously dangerous, especially in conditions of snow and high winds that prevailed this week. At least 14 people have died on its flanks since 2020. L.A. Times | KABC
7.
Starting in February, Los Angeles will cap annual rent increases for most multifamily apartments at 1% to 4%, down from 3% to 8%. While lawmakers said they were responding to widespread frustration over cost of living, economists warned that the change would only worsen matters, deterring investment and further straining housing supply. Minnesota’s Twin Cities are a case study, the Wall Street Journal wrote. In 2022, St. Paul imposed tough rent-control laws. Multifamily permits plummeted, even as they accelerated in nearby Minneapolis, which had no rent control.
8.
After the Los Angeles fires, hundreds of signs sprouted in ashen yards across Altadena with the slogan “Altadena is not for sale,” an expression of the hope to rebuild what had historically been a unique Black haven. Nearly a year later, a report released on Tuesday revealed that roughly 40% of Los Angeles’ burned lots have been bought up by corporate investors. Sheharyar Bokhari, an economist, said it’s a common reality after disasters: “It’s hard to value a vacant lot, so you could perhaps buy lower than what it should sell for and then flip it.” LAist
- “I don’t feel guilty for leaving anymore.” Here are the stories of nine families from a single block in Altadena. 👉 Washington Post
9.
The San Diego County Sheriff’s Office released video on Tuesday that appeared to show a man goading an officer to fatally shoot him, a phenomenon known as “suicide by cop.” On Dec. 21, Gary Gates, 51, approached deputies near the Imperial Beach Pier and told them, “This is going to be a crisis.” Gates then produced a knife, urged a deputy to pull his gun, and said, “Don’t miss.” As Gates moved closer, the deputy fired. Laying on the ground, Gates could be heard saying, “I forgive you.” He died later. Times of San Diego
10.
“It comes in like a hand, and then it just settles in your house. … You’re woken out of sleep. You can’t go back to sleep. You’re gagging in your bed.”
Despite widespread awareness of the toxic waste spilling across the U.S-Mexico border via the Tijuana River, little is understood about the health consequences for people living and working along the polluted waterway. inewsource talked to more than 100 people who work and live in the river valley. Many described experiencing similar symptoms: trouble breathing, sinus infections, chronic headaches, diarrhea, and nausea.
11.
Mickey Rourke is facing eviction from his Los Angeles home over unpaid rent. On Dec. 18, the celebrated 73-year-old actor was warned to pay $59,100 in back rent or vacate his three-bedroom home within three days, according to court records. A star in the 1980s, Rourke blew up his career through what’s been described as bad acting and bad choices before enjoying a comeback with his turn in the 2008 film “The Wrestler.” More recently, he agreed to leave “Celebrity Big Brother UK” after being warned of inappropriate behavior. L.A. Times | Rolling Stone
12.
When Patrick Nesbitt listed his 20-acre mansion in Santa Barbara County for $69.575 million, he adopted an unusual marketing ploy. His real estate agents hired a content studio to create a $25,000 movie trailer for the property in the style of “Game of Thrones.” With an assist from artificial intelligence, the video shows Nesbitt’s 10-acre polo field staging a medieval battle, complete with knights in armor and a dragon flying overhead. The agents think the approach is the future of big real estate sales. Wall Street Journal
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