News

Last Monday Governor Newsom issued a press release previewing a “balanced” budget for 2025-26 so imagine our surprise when his proposed budget released today disclosed that balance was achieved by transferring $7.1 billion from the Rainy Day Fund.

Before there was DOGE there was Arnold Schwarzenegger who when elected governor in 2003 hoped to implement big reforms and sweep cronyism from the State Capitol.

Later this month Daniel Lurie will take office as mayor of San Francisco and in April Oakland will hold a special election to elect a new mayor. Both will contend not only with deficits but also with the problem of spending on current services being crowded out by spending on past services.

My heart sank last week when Congress added $200 billion in debt by passing legislation with broad support from both Republicans and Democrats that expands a financial windfall for retired state and local employees.

As you know, we are desperately in search of candidates for governor in 2026 who will challenge powerful interests even when doing so could jeopardize their political prospects.

At the root of California’s poor public services is legislation signed by Governors Ronald Reagan and Jerry Brown in 1968, 1975 and 1977 that conferred collective bargaining rights on the public employees who provide those services. In the private sector, labor and management report to different parties…

When we wrote to you last month about our priorities we described the 2026 race for governor as “wide open,” but since then we’ve heard that Kamala Harris may run and that if she does, some candidates would make way for her. We hope the rumors aren’t true.

When GFC launched in 2011, our principal goal was to liberate state legislators from public employee union influence. As we have previously reported, so far we have failed in that endeavor. While we have had some success against less powerful special interest groups, public employee union influence is on another level…

In early January Governor Newsom will present the Legislature with a proposed budget for the next fiscal year. The last budget dealt with a large deficit caused by excessive spending. To address that deficit, Newsom and the Legislature raided the Rainy Day Fund, borrowed money, shifted funds and deferred spending, steps that should be reserved for deficits caused by recessions, not by excessive spending.

Governor Gavin Newsom has called a special session of the Legislature for early December. The announced reason is to prepare California for the consequences of a Trump Administration but the real reason is to raise Newsom’s national profile.