Fact-Checking the May Budget Revision
Fact-Checking the May Budget Revision
After six years of budget shortfalls, rising homelessness, and an exodus of residents and businesses, Gov. Gavin Newsom unveiled his $321.9 billion May Revision to California’s 2025–26 state budget on Wednesday — which he acknowledged is upside down by roughly $12 billion. Now, with just weeks until the June 15th deadline, he must work with...
By California Policy Center
Budget Bloat and Blame Games: Inside Newsom’s May Revision
Budget Bloat and Blame Games: Inside Newsom’s May Revision
On Wednesday, Gov. Gavin Newsom released his May budget revision, proposing $321.9 in total spending for the next fiscal year. Now he must work with the legislature to pass a budget bill by the June 15th deadline. In a press conference outlining his budget to reporters, Newsom focused on blaming the Trump administration for California’s...
By Sheridan Karras
Green Hydrogen in California
Green Hydrogen in California
Last week I received an email from a representative of a company planning to build a large scale green hydrogen production facility in California. In reviewing the details announced in this email, which was almost certainly sent to other analysts and journalists, I saw an opportunity to take another look at the challenges facing any...
By Edward Ring
Newsom forced to roll back unwise Medi-Cal expansions
Newsom forced to roll back unwise Medi-Cal expansions
After the state unwisely expanding Medi-Cal in recent years, the program has descended into a fiscal crisis. Now Gov. Gavin Newsom proposes to roll back some of the expansions, but it may be too little too late given pending actions at the federal level. Covering more than one-third of Californians, the Medi-Cal program’s costs are projected to...
By Marc Joffe
California Seeks Federal Funding for the “Worst Transit Project in the US”
California Seeks Federal Funding for the “Worst Transit Project in the US”
When Marc Molinaro takes up his position as the new federal transit administrator, he will have the opportunity to save taxpayers a quick $5.1 billion. All he has to do is decline to provide federal funding for what a high-profile transit advocate recently dubbed “the worst new transit project in the United States”: the extension...
By Edward Ring, Marc Joffe
Principles of New Environmentalism
Principles of New Environmentalism
Last month, in recognition of the annual celebration of Earth Day, it seemed appropriate to compile a list of ten common myths that constitute the major premises of modern environmentalism. That list, along with explanations of why each of these premises is unfounded and counterproductive, can be summarized as follows: 1 – There is no climate crisis....
By Edward Ring
Trump’s First 100 Days Have Shattered California’s Left-Wing Illusions
Trump’s First 100 Days Have Shattered California’s Left-Wing Illusions
President Trump has pushed aside Governor Gavin Newsom and driven the nation’s most populous state toward something approaching sanity. President Trump’s (second) first 100 days have generated some amount of horse excrement. It’s hard to see how it serves Trump’s interests to anger allies in advance of a trade war with China, to drive the economy into...
By Will Swaim
In California State and Local Government, DEI Costs Millions and Distracts Management
In California State and Local Government, DEI Costs Millions and Distracts Management
Although public opinion, most private organizations, and the federal government have turned against Diversity, Equity, and Inclusion (DEI), it remains deeply embedded in the culture of California state and local government. As a result, taxpayers and ratepayers are funding millions of dollars of government DEI-related expenditures annually, and the spending is likely to persist without...
By Marc Joffe, Mark Moses
Saving California’s Rural Water Users
Saving California’s Rural Water Users
Despite its status as an agricultural superpower, eclipsing every other U.S. state in farm output, California’s farming sector wields relatively little influence in Sacramento. When you evaluate the state’s GDP components, the sectors that dominate are financial, IT, and services, at around a half-trillion each, followed by manufacturing and government at around $400 billion and $300...
By Edward Ring
CARB and the Low Carbon Fuel Standard: Unaccountable, Ineffective, and Driving Up Costs Across California’s Economy
CARB and the Low Carbon Fuel Standard: Unaccountable, Ineffective, and Driving Up Costs Across California’s Economy
The California Air Resources Board has entrenched itself as one of the least accountable, least effective, and most costly bureaucracies in the history of California politics. The goal of CARB is simple: to lower the amount of greenhouse gas emissions in California. The way CARB aims to achieve this is primarily by adjusting the Low...
By Timothy Belev
SEIU 721’s Strike Impacts County Services While Union Pushes for Bigger Payouts
SEIU 721’s Strike Impacts County Services While Union Pushes for Bigger Payouts
May 1, 2025 – Yesterday evening, SEIU 721 (a union representing government employees throughout Southern California) wrapped up their two-day strike consisting of more than 55,000 workers. Picketing, protests in Downtown LA, and sitting in the streets have characterized this union strike over a new labor contract with Los Angeles County. On April 29, the...
By Sheridan Karras
Is California Doomed to Repeat Pension History?
Is California Doomed to Repeat Pension History?
California’s state and local governments are struggling to find the cash needed to pay government employees the retirement benefits they promised. As the League of California Cities observed, pension costs for many of their members have been rising to “unsustainable levels”. Now, remarkably, the state Assembly is ready to make that problem far worse –...
By Marc Joffe
How to Add 10 MAF/yr to California’s Water Supply
How to Add 10 MAF/yr to California’s Water Supply
There is a good chance that a Californian is going to be nominated to become the new Commissioner of the Bureau of Reclamation. One source of opposition to his confirmation could be senators representing states that share with California the waters of the Colorado River, concerned that a Californian will not sufficiently take into account...
By Edward Ring
Whatever happened with Proposition 4?
Whatever happened with Proposition 4?
An overview of the bond measure and what it means for California’s budget. Voters were sold a shiny promise — now California is billions deeper in debt. Last November, California voters approved Proposition 4, which authorized $10 billion in bonds for “safe drinking water, wildfire prevention, and protecting communities and natural lands from climate risks.”...
By Sheridan Karras