After 10 years in business, Courtney Cowan is closing Milk Jar Cookies due to untenable financial challenges.
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Topline:
The Los Angeles restaurant scene lost some real gems in 2023. Between inflated food and labor costs, pandemic effects, and months of strikes, many operators were forced to close shop.
The reasons: Rising rent and minimum wage increases mean restaurants are making less profit, without the support of government relief programs that have dried up since the pandemic.
Strike impacts: Restaurants saw a 20-40% loss in revenue during the six-month dual Hollywood strikes by writers and actors in 2023.
On a Saturday afternoon at Milk Jar Cookies in Mid-Wilshire, Courtney Cowan tells customer after customer the same thing. She’s completely sold out.
“We opened at 10, so they started lining up around 9:15 or 9:30," she says. "We’re certainly serving everything we’ve got, trying to keep up with the beautiful demand."
Customers new and old have flocked to the shop to get one last taste of her delicious, signature dough. They’ve all heard the news: After 10 years, Cowan is reluctantly closing Milk Jar Cookies on Jan. 15.
Milk Jar Cookies has been inundated with orders since they announced their upcoming closure in late December.
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“It’s been bittersweet, because a lot of old faces have come,” she says. “My hope when I opened was to be like the Cheers of cookies, where we know everybody’s name. We’ve done that.”
Milk Jar Cookies is a true labor of love. Back in 2012, Cowan left her job in television to pursue her cookie dream full time. She opened a second Encino location in 2022. But in December, she announced both shops will close due to untenable financial hurdles.
“We’ve been fighting for our life for about six months,” she says through tears. “Unfortunately, it just became a mountain too high for us to climb.”
Cowan’s experience echoes that of many L.A. restaurateurs in 2023. Between steep food and labor costs, lingering pandemic effects, and six months of Hollywood strikes, it's been a devastating year for the food business. A long list of establishments were forced to reduce their operations or close their doors permanently.
Courtney Cowan opened Milk Jar Cookies in 2012, after leaving her job in television to pursue her cookie business dream full time.
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“When we’re busier than ever and we’re still overdue on bills … it just wasn’t enough,” Cowan says. “We’re just being squeezed from all sides.”
Pandemic pressure
Nearly four years ago, the world’s introduction to COVID-19 irreversibly changed the restaurant industry. Without the option of on-site dining, consumers moved toward carry out and delivery — shuttering countless restaurants.
Many of those that stayed afloat did so with the help of government relief programs that have now dried up, like Paycheck Protection Program loans and the Restaurant Revitalization Fund.
Walter Manzke's Petty Cash Taqueria closed on Oct. 20 after 10 years serving tacos and cocktails.
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Those were crucial for seasoned chefs Walter Manzke and Margarita Manzke to keep their signature restaurant, République, open throughout the pandemic.
Unfortunately, the opposite happened at two of their other businesses: Petty Cash Taqueria shut its doors in October, and Sari Sari Store followed in December.
“Financially, they just couldn’t take the hit. There was just not enough volume going in there where it made sense to continue on,” Walter Manzke says.
James Beard award-winning chef Margarita Manzke ran Sari Sari Store at Grand Central Market for nearly seven years until it announced its closure in mid-December.
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Sari Sari Store — which built its home in Grand Central Market — relied on the steady flow of downtown L.A. office workers. Manzke says that’s completely changed with hybrid work. Offices just aren’t as bustling as they were in 2019.
Almost 75% of restaurant traffic today remains “off premises,” according to the National Restaurant Association. Before March 2020, it was closer to 61% — meaning people are more reliant on their takeout options than they were pre-pandemic.
"People are always looking at that shiny next object, and it’s very difficult for a restaurant to keep up with that."
— Ben Brown, San Diego-based restaurant consultant
On top of that, Southern California consumers are far less brand loyal compared to previous decades, according to San Diego-based restaurant consultant Ben Brown.
“People are always looking at that shiny next object, and it’s very difficult for a restaurant to keep up with that,” he says.
He also points to a boom in competition right after pandemic closures were lifted, which may have backfired for the industry.
“A lot of groups wanted to bring a new dining experience to the world once the world reopened. It seems that the market wasn’t really there to support all those new concepts.”
Rising costs
Los Angeles is expensive. Running a restaurant here isn’t cheap — or easy. Food service is a notoriously low-margin business within a competitive market, says Brown.
The traditional restaurant model splits things 30/30/30/10: 30% of revenue toward labor, 30% toward food and beverage, 30% toward fixed costs like rent and utilities, and 10% (at best) left over in profit.
Nowadays, rising costs of rent, food, and labor are distorting that breakdown.
“What you’re seeing is restaurants getting squeezed on all levels for that 10% to dissipate, and for a restaurant to be lucky to turn a profit whatsoever,” says Brown.
The rising cost of food is a top concern for operators nationwide. In Los Angeles, 65% of restauranteurs reported that all or most of their vendors increased prices in the past year, according to data by restaurant management system TouchBistro.
Labor is also pricey. California offered one of the highest minimum wages in 2024, at $16 — up from $15.50 last year. Under Assembly Bill 1228, hourly wages at large fast food chains will increase to $20 starting in April. Small business owners hiring from the same pool of workers say they can’t compete.
“Of course, people need to have a living wage. There's no question about it. The problem is: how do you operate a business successfully in order to accommodate the rising cost of labor, when your customer is not willing to pay the price premium that comes with that?”
Silver Lake Spanish restaurant Bar Moruno closed in early November.
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Bar Moruno
In November, chef Chris Feldmeier made the painful decision to close his beloved Bar Moruno, an upscale Spanish restaurant in Silver Lake.
“Even if you’re running the best restaurant … your labor is up to 40%. It’s really hard, there’s not a lot of profit or anything left over,” he says.
As a “kitchen guy,” Feldmeier is all for higher wages. But he says the restaurant industry as a whole hasn't been able to keep up. “We ran a fantastic food cost to try to mitigate some of these hourly wages and stuff, and we still had a tough go at it.”
Restaurateurs like Feldmeier haven't been going down without a fight. Cost-saving measures like mandatory service charges and smaller menus are more common. "Many of these operations have had to fundamentally re-engineer how they conduct business," says Hudson Riehle, senior vice president of research for the National Restaurant Association.
Menu prices are 10-25% higher than they were in 2022, according to the James Beard Foundation.
Empty shelves within Milk Jar Cookies' industrial refrigerator are common as orders pour in during their final weeks in business.
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Over the years, Cowan raised her cookie prices from $3 to $4, and began selling supplemental items like snackable dough, ice cream, and merchandise. She still couldn’t keep up with steep rent increases and a utility bill now 50% higher each month, while still paying her staff a competitive wage.
“Every single facet of owning a business has become more expensive and more difficult,” she says.
Hollywood strikes
In this company town, small businesses struggled through last year’s dual strikes by writers and actors — even while supporting them.
Cowan offered discounts for both guilds, and passed out cookies on several picket lines. However, she says the stall hit some small business owners even harder than COVID.
“When all of the orders from that whole industry cease and evaporate for almost eight months, that makes a massive impact,” she says.
The California economy lost up to $7 billion from the strikes, according to estimates by Todd Holmes, professor of entertainment industry management at California State University, Northridge. He says restaurants saw a 20-40% loss in revenue.
“Normally, they might have three different deliveries they’re doing in a day to studio sets, and it went from three a day to maybe, one or two a week,” he says.
Milk Jar Cookies was among the places that counted on set deliveries and gifts for agents and managers, in addition to events that were canceled during the strikes. “Our whole town depends on that industry, whether it’s toy stores or doggy daycares or bakeries or restaurants,” says Cowan.
“I think that was a death blow to a lot of restaurants, including mine."
— Chris Feldmeier, chef-owner of Bar Moruno
Bar Moruno’s business also suffered from the loss of industry clientele in Silver Lake. Chef Feldmeier likens the entertainment industry to Los Angeles’ “steel mill" — if it shuts down, everything shuts down.
“I think that was a death blow to a lot of restaurants, including mine."
Winter blues
December was especially flooded with closure announcements, from classic gems like Marco’s Italian Restaurant to The Federal Bar in North Hollywood.
That’s probably not a coincidence; winter is a notoriously difficult time for restaurant operators, according to restaurant consultant Brown.
“It’s colder out, and people dine out less. That said, if a restaurant is going to stay open during the winter, they’re typically going to want to stay open through the holidays.”
Many places depend on that holiday bump to get them through the rest of winter. January and February is when they’ll assess whether it was enough. That means more closures are likely over the next few months.
For Cowan’s Milk Jar Cookies, even the holiday rush — which they can usually count on — didn’t cut it this year. They didn’t get a single order from an entertainment industry company.
“It just wasn’t enough,” Cowan says. “With all the other steps we had taken, I was really hopeful that we could get on the road to recovery. It just became very obvious that it was a hill too steep.”
Closing up shop
In its final weeks, the energy inside Milk Jar Cookies resembles its bustling, pre-pandemic self, filled with “beautiful, blissful chaos,” as Cowan puts it.
Orders spit out of a kitchen printer as she greets dedicated customers with teary eyes and hugs, thanking them for years of patronage and heartfelt words. They jot notes in a guest book before saying goodbye.
Between taking orders, Cowan says goodbye to long-time customers and friends who pass through Milk Jar Cookies.
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Sallie Patrick — screenwriter and former co-worker from Cowan’s television days — walks into the shop, two kids in tow. Cowan gets emotional at the sight of her friend, who encouraged her to pursue her cookie dream in the first place.
“I’m so proud of her. It was so cool to show my kids an example of this woman who just decided to start this business, and was so successful at it,” Patrick says.
"On the best of days or the worst of days, you could come in and leave feeling a little better than when you came in."
— Courtney Cowan, owner of Milk Jar Cookies
For Cowan, it’s always been bigger than cookies. The outpouring of community support has reminded her that she’s not alone in that sentiment.
She's not sure what's next, but she's sure how she'll remember Milk Jar Cookies: “On the best of days or the worst of days, you could come in and leave feeling a little better than when you came in.”
Rose Duran, skates inside of The Garage Board Shop in East LA on Thursday, March 12. The mural behind her was painted by the Skate 4 Education after-school program students.
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Topline:
For 15 years, The Garage Board Shop in East L.A. has been a safe, welcoming place for students to go to do their homework, get tutoring, hang out with their friends and learn how to skate through its Skate 4 Education after-school program.
Program on pause: The program was put on pause Saturday after mounting issues, including a lapse from the initiative that has provided paid mentors and dwindling sales at the shop caused by immigration raids. Skate 4 Education founder Maria Patricia Ramblaz said she’s now looking for new funding sources to bring the after-school program back, but its future remains in limbo.
Why it matters: The abrupt closure of the program has left parents saddened and worried their children’s grades and personal development will also be affected. Ramblaz, known by students as Ms. Patty, told Boyle Heights Beat that when she announced the news last week, the kids sprang into action to brainstorm ways to save the program.
Read on... for more about what the pause means for students.
For 15 years, The Garage Board Shop in East L.A. has been a safe, welcoming place for students to go to do their homework, get tutoring, hang out with their friends and learn how to skate through its Skate 4 Education after-school program.
But the program was put on pause Saturday after mounting issues, including a lapse from the initiative that has provided paid mentors and dwindling sales at the shop caused by immigration raids. Skate 4 Education founder Maria Patricia Ramblaz said she’s now looking for new funding sources to bring the after-school program back, but its future remains in limbo.
“Our best option to ensure the program continues for future generations is a momentary pause to not only find funding but also regroup as a team to see how we will work moving forward,” wrote Ramblaz, who runs The Garage Board Shop as well as The Urban Warehouse nonprofit organization, in a letter sent to partners, sponsors and community members Friday.
The abrupt closure of the program has left parents saddened and worried their children’s grades and personal development will also be affected.
Ramblaz, known by students as Ms. Patty, told Boyle Heights Beat that when she announced the news last week, the kids sprang into action to brainstorm ways to save the program.
They planned to spread the word about the program by making TikTok videos and handing out flyers to their friends and teachers at school. One girl handed Ramblaz two folded dollar bills she had in her pocket that day, a gesture that Ramblaz said filled her heart with joy and sadness.
“These kids should be the next governor, the next mayor, but because we’re cutting the education, I don’t think it’s gonna give us a chance to open more bridges for the kids,” Ramblaz said.
A place for students to thrive
When Rose Duran, 10, went home after learning the program would shut down, she surprised her parents with her idea to bring it back.
“I don’t want a quinceañera anymore,” she told her mother, Itzel Tlapalco, asking to donate the money that her family has been saving for her huge, coming-of-age celebration for years. “I want to help Miss Patty.”
Rose has been attending the Skate 4 Education after-school program since she was 7 years old, following in the footsteps of her older brother, who got involved after walking into the store to buy a skateboard with his parents over three years ago, Tlapalco said.
Maria Patricia Ramblaz talks to Itzel Tlapalco and Guillermo Duran about the Skate 4 Education program being put on pause inside The Garage Board Shop on Thursday, March 12.
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Tlapalco and Guillermo Duran said their son was struggling in math at the time, and soon after starting, they saw significant improvement in his grades thanks to the tutoring and attentiveness of the mentors at the program.
“It helped him a lot; he developed significantly at school, and he came here to learn even more,” Duran said in Spanish. They saw the same improvement when their daughter began participating, too.
Tlapalco said she has tried to understand her daughter’s homework, but she can’t help as well as the mentors at The Garage Board Shop do. She’s now worried her grades will take a hit.
Bernardo Lopez has been bringing his two daughters, Eliana and Emily, to the after-school program for over a year and said the girls offered to donate their birthday money to save it. They have also been spreading the word to their friends at school, Lopez said.
The program has been a great way for his daughters to socialize with other children and stay off of their phones and tablets, he added. “That’s really important because they don’t have that anymore,” he said. ”I feel like kids don’t have that anymore.”
A plan to keep it going
The program began 15 years ago, when Ramblaz set out to create the type of education program that she needed when she was a young student growing up in Boyle Heights.
Maria Patricia Ramblaz stands in the classroom located at the back of The Garage Skate Shop on Thursday, March 12.
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Over the years, with the help of grants from the county and organizations including L.A. Care, LA2050, Nike and Southern California Edison, Ramblaz was able to create a multifaceted program with paid mentors via America’s Job Center of California, offering students homework help and working with them on projects and activities. Through getting good grades and completing their assignments, students were rewarded with skate supplies at the shop, giving them a place where they could not only stay on track in school, but also spend time with friends and lean into their skating hobby.
Ramblaz said that this school year, AJCC was only able to provide paid mentors through December, with a new cohort set to start in July. Normally, she’d cover the gap out-of-pocket, but over the last year, her business has faced rising costs and the lasting effects of immigration raids.
Last June, U.S. Immigration and Customs Enforcement raids hit her business hard. She went from making $400 a day on average to suddenly only making one or two sales per day in the weeks following the raids. Now, sales have steadily gone up, but it’s still not like before. Ramblaz said she’s had to take money out of her retirement fund to cover rent and bills at the shop.
The raids also caused some families to stop bringing their kids to the after-school program out of fear. Attendance went from 12 to 15 students a day to 3 to 5. Parents pay a $50 donation per month to keep their children enrolled, so the drop in attendance has also caused the program to take a financial hit.
Her only option, she said, is to put the program on pause to continue seeking out other avenues for funding.
Ramblaz said she needs about $50,000 to guarantee that the program survives for the rest of the year. That money would cover mentors’ salaries and pay for school supplies, projects, activities and snacks for the students.
Ramblaz said she has submitted over 30 grant applications in the past few months. Some remain under review, and others have been denied.
“It’s really depressing,” Ramblaz said. “This is my dream. This is my mission.”
Labor leader and civil rights activist Dolores Huerta speaks at an event in 2024.
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Topline:
Labor rights icon César Chávez is accused of sexually assaulting fellow farmworker leader Dolores Huerta in the 1960s, according to a New York Times investigation released Wednesday. Chávez is also accused of sexually assaulting two underage girls in the 1970s, the report said.
Dolores Huerta's statement: Huerta, 95, said she was reluctant to share her story because of Chávez’s status and kept the secret because she "believed that exposing the truth would hurt the farmworker movement I have spent my entire life fighting for,” she said in a statement issued Wednesday.
Labor rights icon César Chávez is accused of sexually assaulting fellow farmworker leader Dolores Huerta in the 1960s, according to a New York Times investigation released Wednesday. Chávez is also accused of sexually assaulting two underage girls in the 1970s, the report said.
Huerta, 95, said she was reluctant to share her story because of Chávez’s status and “for the last 60 years have kept a secret because I believed that exposing the truth would hurt the farmworker movement I have spent my entire life fighting for,” she said in a statement issued Wednesday.
Just one day prior, the United Farm Workers union says it would not participate in any César Chávez Day activities March 31 after it learned of “troubling” allegations against Chávez, who co-founded the labor organization in 1962.
Huerta helped organize a labor strike in 1965 with organizers, including Chávez. She told the New York Times that Chávez raped her in 1966.
On Wednesday, she confirmed the reporting and reflected on her years of silence in a detailed statement.
Crisis intervention, counseling, prevention education, 24-Hour Sexual Assault Crisis Hotline, and support services for survivors of sexual assault and abuse.
Sexual Assault Survivors: (909) 626-4357 (HELP)
Child Abuse Hotline: (626) 966-4155
Read the full statement in her own words:
“I am nearly 96 years old and for the last 60 years have kept a secret because I believed that exposing the truth would hurt the farmworker movement I have spent my entire life fighting for.
“I have encouraged people to always use their voice. Following the New York Times’ multi-year investigation into sexual misconduct by César Chávez, I can no longer stay silent and must share my own experiences.
“As a young mother in the 1960s, I experienced two separate sexual encounters with César. The first time, I was manipulated and pressured into having sex with him, and I didn’t feel I could say no because he was someone that I admired, my boss and the leader of the movement I had already devoted years of my life to. The second time, I was forced, against my will, and in an environment where I felt trapped.
“I had experienced abuse and sexual violence before, and I convinced myself these were incidents that I had to endure alone and in secret. Both sexual encounters with César led to pregnancies. I chose to keep my pregnancies secret, and after the children were born, I arranged for them to be raised by other families that could give them stable lives.
“Over the years, I have been fortunate to develop a deep relationship with these children, who are now close to my other children, their siblings. But even then, no one knew the full truth about how they were conceived until just a few weeks ago.
“I carried this secret for as long as I did because building the movement and securing farmworker rights was my life’s work. The formation of a union was the only vehicle to accomplish and secure those rights, and I wasn’t going to let César or anyone else get in the way. I channeled everything I had into advocating on behalf of millions of farmworkers and others who were suffering and deserved equal rights.
“I have never identified myself as a victim, but I now understand that I am a survivor — of violence, of sexual abuse, of domineering men who saw me, and other women, as property or things to control.
“I am telling my story because the New York Times has indicated that I was not the only one — there were others. Women are coming forward, sharing that they were sexually abused and assaulted by César when they were girls and teenagers.
“The knowledge that he hurt young girls sickens me. My heart aches for everyone who suffered alone and in silence for years. There are no words strong enough to condemn those deplorable actions that he did. César’s actions do not reflect the values of our community and our movement.
“The farmworker movement has always been bigger and far more important than any one individual. César's actions do not diminish the permanent improvements achieved for farmworkers with the help of thousands of people. We must continue to engage and support our community, which needs advocacy and activism now more than ever.
“I will continue my commitments to workers, as well as my commitment to women’s rights, to make sure we have a voice and that our communities are treated with dignity and given the equity that they have so long been denied.
“I have kept this secret long enough. My silence ends here.”
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covers important issues that affect the everyday lives of Southern Californians.
Published March 18, 2026 2:32 PM
A statue of labor leader and civil rights activist César Chávez is displayed at the César E. Chávez Memorial Park in San Fernando.
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Justin Sullivan
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Getty Images
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Topline:
A new investigation from the New York Times has made public sexual assault allegations against labor icon César Chávez, with accusations that he abused young women and minors for years. Chávez’s legacy began in Los Angeles, so we’re looking at how he influenced the city and what we may have to reckon with.
Start of his career: Chávez began with political organizing here with the Community Service Organization, where he helped get low-income Latinos out to vote. He rose up the ranks and became its national director before leaving for the Central Valley.
Mark on L.A.: His professional and personal life was here for a time. Chávez lived in Boyle Heights and later had a home near Koreatown where he’d stay while in town. One expert shared how his civil rights advocacy was a catalyst for the Chicano movement in L.A.
Separating the man from L.A.: Chávez left such a mark on L.A. that there are multiple places where his name is plastered, like schools and parks. Now that the allegations are out, local leaders are figuring out what should go and how it should be replaced.
Read on … to see what community members think needs to happen next.
While César Chávez became a labor icon because of his work to elevate farmworkers and improve labor conditions in California, he had a complicated legacy that included infidelity and backlash over his views on undocumented immigrants.
But now, that’s gotten worse.
A new investigation out Wednesday from the New York Times, with more than 60 interviews, has brought to light multiple allegations that Chávez used his powerful role to sexually abuse young women, including the co-founder of the United Farm Workers union, Dolores Huerta, and underage girls for years.
Before this bombshell dropped, many still regarded him as a hero who played a pivotal role in building Latino political power. In Los Angeles, we have streets named after him. Schools. Even a public holiday at the end of this month.
The revelation will have wide ramifications nationally, but in Southern California, his local legacy will need to be reckoned with over the coming weeks and months.
LA’s outsized role
Fernando Guerra, professor of Chicana/Chicano studies at Loyola Marymount University, said the news came as a gut punch.
“It feels personal because of how much you incorporated what he stood for,” he told LAist. “ It speaks to the frailty of humans that even when they present themselves publicly in one way, how different they are privately.”
Chávez’s journey began with L.A. and political organizing at the Community Service Organization, or CSO. His job was to get low-income Latinos out to vote, which led to a national director role based in L.A. During this time, Chávez lived in Boyle Heights with his wife and kids.
He was also one of the catalysts for the Chicano movement in L.A., such as the East L.A. Walkouts and the Chicano moratorium marches.
“ It truly helped create a moment in Los Angeles where Latinos, Chicanos specifically and Mexican Americans, began to recognize that they could seek and mobilize for their rights.” Guerra said.
And when he left to organize farmworkers in the Central Valley, that led to the creation of the United Farm Workers union, which he co-founded with Huerta. The organization eventually bought him a house south of Koreatown to serve as a homebase for him to stay at and organize while in town.
His footprint here was undeniable, and many wanted this towering figure to be celebrated. So, we put his name on a lot of things, such as libraries, schools, university departments, parks and streets across L.A. County and beyond. And his likeness can be found here too — in murals, exhibits and statues.
That will probably change soon, as local leaders already are calling for renaming. Some ideas being floated are to change the public holiday to Farmworker Day and the street to Dolores Huerta Avenue. Guerra said that’s the right move.
“ While César Chávez’s name and his legacy will be tainted forever, it does not negate the farmworker movement,” he said. “It does not negate the blood, sweat and tears of thousands of people … and the impact that it had on California.”
Crisis intervention, counseling, prevention education, 24-Hour Sexual Assault Crisis Hotline, and support services for survivors of sexual assault and abuse.
Sexual Assault Survivors: (909) 626-4357 (HELP)
Child Abuse Hotline: (626) 966-4155
The community and family react
During AirTalk on LAist 89.3, listeners called and wrote in to share their perspective on the allegations, echoing what Guerra said.
Jorge in Long Beach said that while the news is unfortunate, it’s an opportunity to honor the farmworker labor movement itself and to uplift other labor leaders, including the legacies of Dolores Huerta and Larry Itliong.
“I do not think the Filipino community receives enough credit for being at the forefront of the farmworker labor movement,” he wrote. “Chávez, or anyone else, must never, ever again be considered bigger than the movement or overshadow others who served.”
Monica in Hawthorne said she’s a Mexican American who spent a lot of time learning about Chávez’s role in her community when she was in grade school. She was in tears hearing Huerta’s statement, which covered how Chávez raped her.
“I did projects on him every chance I could,” she wrote. “This is heartbreaking. My heart goes out to her, her family and all survivors.”
LAist reached out to the Chávez family for comment on the allegations. In a statement, they shared how they’re devastated and that the news is deeply painful for the family.
“We wish peace and healing to the survivors and commend their courage to come forward. As a family steeped in the values of equity and justice, we honor the voices of those who feel unheard and who report sexual abuse,” the statement read. “We carry our own memories of the person we knew. Someone whose life included work and contributions that matter deeply to many people.”
The family said it remains committed to farmworkers and the causes Chávez championed. They’re asking for understanding and privacy as they process this “difficult” information.
Gas prices surpass $5.99 per gallon at a station in Encino on March 9, 2026. Gas prices have recently surged in the state as the U.S. war with Iran intensifies.
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Topline:
Experts say the latest gas price spike is driven by global oil markets and the Iran conflict, while California’s higher base price stems from refinery closures, the state’s market and environmental rules.
Why now: Amid a spike in gas prices fueled by President Donald Trump’s war in Iran, at least two Democratic contenders for California governor are capitalizing on the moment to push for policies they say would give drivers a break. Recent proposals from former Los Angeles Mayor Antonio Villaraigosa and San Jose Mayor Matt Mahan reflect how Democrats are trying to use rising gas prices, a potent election-year issue, to distinguish themselves as prioritizing the cost of living. Their Republican opponents have been saying the same for months.
Other Dem candidates: Top-polling Democratic candidates Katie Porter, Tom Steyer and Eric Swalwell have not weighed in on what they would do to mitigate gas prices. Steyer and Swalwell on Tuesday night both dismissed the proposals of Villaraigosa and Mahan as unserious.
Read on... for more about the pitches.
One candidate wants to suspend a host of state environmental policies that boost the price of gas. Another wants to suspend the 61 cent-a-gallon state gas tax.
Amid a spike in gas prices fueled by President Donald Trump’s war in Iran, at least two Democratic contenders for California governor are capitalizing on the moment to push for policies they say would give drivers a break.
Recent proposals from former Los Angeles Mayor Antonio Villaraigosa and San Jose Mayor Matt Mahan reflect how Democrats are trying to use rising gas prices, a potent election-year issue, to distinguish themselves as prioritizing the cost of living.
Their Republican opponents have been saying the same for months.
Villaraigosa is calling for a moratorium on a variety of state greenhouse-gas reduction rules that he called “failed policies.” They include carbon emissions limits at refineries, standards to reduce carbon in fuels and other rules he blames for forcing refineries to close. Such policies collectively add about 50 cents to the price of each gallon of gas, state estimates show.
Villaraigosa has received several campaign donations from the fossil fuel industry, including from Chevron, Marathon, the state’s largest oil and gas producer California Resources Corporation, and executives of two Kern County drilling companies.
Mahan supports temporarily suspending the state gas tax, but in an interview said he wouldn’t rule out also curbing some of the state’s refinery regulations.
Both candidates are lower-polling moderates, and their proposals are similar to ideas the two top-polling Republican candidates have been pushing.
Republican Steve Hilton has promised to lower the price of gas to $3 a gallon statewide by cutting the gas tax in half and eliminating policies that reduce emissions. Chad Bianco would do away with the gas tax altogether. Both Republicans would expand in-state oil drilling and keep refineries open, a goal Villaraigosa and Mahan also share.
Top-polling Democratic candidates Katie Porter, Tom Steyer and Eric Swalwell have not weighed in on what they would do to mitigate gas prices. Steyer and Swalwell on Tuesday night both dismissed the proposals of Villaraigosa and Mahan as unserious. Steyer's spokesperson Danni Wang said he would rather focus on making "sure oil companies aren’t reaping excess profits" while Swalwell's spokesperson Micah Beasley said he would prioritize keeping refineries' fuel inventories stable as the state transitions to clean energy. Porter's campaign did not respond to inquiries.
Democratic strategist Andrew Acosta said the ideas from Villaraigosa and Mahan could help the moderate Democrats boost their campaigns’ affordability bona fides, but he questioned whether they will make a difference in a crowded race in which voters are not yet paying much attention.
The latest polling shows Mahan and Villaraigosa tied with just 3% of likely voters’ support, but a quarter of those surveyed remain undecided on a candidate. Both have been dwarfed in ad spending by self-funding billionaire candidate Steyer, and Acosta said the gas proposals won’t gain traction if the candidates don’t spend big to promote them on TV.
“It could be a ploy, or good politics. Will anyone hear it? I don’t know,” Acosta said of the gas proposals. “It’s a little harder to get anyone’s attention just on the race itself, let alone this issue.”
Why are California's gas prices so high?
As candidates blame taxes and climate rules for high gas prices, experts point to a more complicated, less politically convenient reality: The recent spike is largely driven by a global oil shock tied to the war with Iran, not state policy.
Nevertheless the war increases a deeper vulnerability for California, where gas prices climbed above $5.50 a gallon Tuesday compared to nearly $3.80 nationally: As refinery capacity declines and reliance on imports grows, global disruptions can trigger higher prices in California than anywhere else.
“The current increase is almost entirely due to global oil markets,” said Paasha Mahdavi, a UC Santa Barbara political science professor and energy policy expert. “The problem, though … is that our starting point is so much higher than nationally.”
State analyses show California’s higher gas prices come not only from taxes and climate programs but also a large remaining “mystery surcharge,” an unexplained markup oil companies add to gasoline prices.
That unexplained premium averaged about 41 cents per gallon between 2015 and 2024, costing drivers an estimated $59 billion, according to the state’s petroleum market watchdog.
“Gas prices are much higher in California for reasons that have to do with the market for refined gasoline,” said Michael Wara, a Stanford legal scholar who focuses on climate. “It's something that is in the control of the industry.”
The oil industry blames California policies.
Prices “are higher in California because of taxes and compliance costs, but also because state policies have driven refineries and crude production out, said Jim Stanley, a spokesman for the Western States Petroleum Association, in a written statement.
Stanley declined to comment on Villaraigosa’s proposal for a regulatory moratorium.
Villaraigosa’s call to “overhaul” the state’s air resources board and for “an immediate moratorium on costly regulations overburdening California refineries” is a familiar refrain.
The air board’s climate programs — including the low carbon fuel standard and the state’s cap-and-trade program, recently rebranded as cap-and-invest — have faced repeated political and industry pushback, especially as regulators consider updates that could affect refinery costs.
Those climate policies raise fuel costs but have also generated billions for clean energy and transportation programs.
California's air board has faced mounting criticism over both programs — the fuel standard drew opposition from Republicans, the oil industry, and even environmental justice advocates when it was revised in 2024, and this year oil companies, some Democratic lawmakers and Villaraigosa have warned that tightening cap-and-trade rules could accelerate refinery closures.
A touchy political issue
An even easier target in campaign promises is the gas tax, which lawmakers voted to raise in 2017.
It has risen by 20 cents per gallon since then, to 61 cents, and generates nearly $8 billion a year — the vast majority of state funding for highway and road repairs.
It’s also been a touchy issue for Democrats, especially in swing districts.
Porter, running as a Democrat to flip a GOP-held Orange County congressional seat in 2018, backed a failed Republican-led ballot measure to repeal that gas tax increase and ran ads declaring that “I oppose higher gas taxes.”
The move cost her a labor endorsement — unions generally support the tax because the revenue pays for projects their members work on — but it helped her head off claims that she supported the hike as she ran as an economic progressive.
Taking the gas tax off is an easy thing to do.
— Ryan Cummings, chief of staff at the Stanford Institute of Economic Policy Research
Two Democratic lawmakers have lost their seats to Republicans in recent years after criticism about the gas tax.
Now Mahan, a Democrat, is pitching a gas tax holiday. He suggested that it last for the “duration of the war,” with a ballpark goal of keeping average prices below $5 a gallon.
“I would leave it to the experts in Sacramento to set that limit, but I think something around $5 is reasonable,” he said.
Asked how he would pay for road and highway repairs in the meantime, Mahan said he would find other funding elsewhere in the state budget.
Ryan Cummings, chief of staff at the Stanford Institute of Economic Policy Research, said he’s skeptical a suspension would save drivers because it’s possible gas companies would pocket some of the savings.
But he also warned against any governor removing the tax without providing alternative funding for road maintenance; reinstating a tax in the future would be seen as raising the price of gas by 60 cents a gallon at once.
If history is any guide, voters would likely balk at that: In 2003, facing a recall, then-Gov. Gray Davis tried to reinstate a vehicle license fee that the state had lowered for years. Opponent Arnold Schwarzenegger leapt to attack him for tripling the “car tax,” a move that observers agree helped him oust Davis.
“Taking the gas tax off is an easy thing to do,” Cummings said. “Putting it back on is extraordinarily difficult — and essential.”