This is Essential Politics, our daily look at California political and government news. Here's what we're watching right now:
- A scathing state audit says University of California President Janet Napolitano's office failed to disclose surplus cash and paid some staffers high salaries.
- An effort to ban the so-called '"Netflix tax" on streaming video failed in an Assembly committee.
- Challengers have emerged for two Republican incumbents, Rep. Devin Nunes (R-Tulare) and Rep. Ed Royce (R-Fullerton).