CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win
California is drowning in fraud, waste, and abuse—an estimated $80 billion annually, roughly 20% of the state budget. Former senior adviser to the UK Prime Minister Steve Hilton's CalDOGE investigation uncovered shocking examples: $1 billion in climate funds with only 7% reaching actual solar panel
1h 8mKey Takeaway
California is drowning in fraud, waste, and abuse—an estimated $80 billion annually, roughly 20% of the state budget. Former senior adviser to the UK Prime Minister Steve Hilton's CalDOGE investigation uncovered shocking examples: $1 billion in climate funds with only 7% reaching actual solar panel installations, the rest going to political nonprofits. The solution? Start auditing where money actually goes, demand transparency in every dollar spent, and hold government accountable like any business would. Real change begins when citizens understand that 'good intentions' without accountability equals systemic waste.
Episode Overview
Steve Hilton, Republican candidate for California governor and former senior adviser to UK Prime Minister David Cameron, discusses his candidacy and policy platform on the All-In Interview Show. As a naturalized American citizen who renounced his UK citizenship, Hilton proposes eliminating state income tax for those earning under $100,000 and implementing a 7.5% flat tax above that threshold. He estimates 20% of California's $350 billion budget ($80 billion annually) is lost to fraud, waste, and abuse, citing specific examples uncovered by his California Department of Government Efficiency (CalDOGE) investigation.
Key Insights
California's Structural Cost Crisis Has Three Drivers
Hilton identifies union power, excessive litigation (particularly through CEQA's private right of action), and climate dogma as the three structural forces making California unaffordable. These forces combine to make building costs 2-3 times higher than neighboring states. For example, 70% of CEQA lawsuits are used to block housing, most filed by unions to leverage project labor agreements that mandate union-only workforces at 2-3 times market wages.
Massive Government Waste Hiding in Plain Sight
CalDOGE investigation revealed $425 billion in fraud, waste, and abuse over five years—roughly $80 billion annually or 20% of the state budget. Specific examples include $928 million of a $1 billion climate fund going to political nonprofits instead of solar panels, and $350 million in cannabis tax revenue meant for substance abuse prevention redirected to voter registration and activism organizations.
Tax Relief Without Service Cuts Is Possible
Hilton's proposed tax plan (zero state income tax under $100,000, 7.5% flat tax above) would cost approximately $60 billion—merely returning the budget to pre-pandemic levels. California's budget has nearly doubled in 10 years and increased 75% in just five years. The proposal demonstrates that meaningful tax relief doesn't require cutting services, just eliminating the unsustainable budget growth and waste.
Bipartisan Agreement Exists on California's Problems
All gubernatorial candidates, including Democrats like Katie Porter, agree on the core problems: unaffordable cost of living, hostile business climate, massive overregulation, and inability to build anything efficiently. Porter even adopted Hilton's tax plan for those earning under $100,000. This consensus on diagnosis suggests potential for legislative cooperation, even in a Democrat-controlled legislature.
California Is Losing Its Manufacturing and Tech Edge
Despite being the tech capital, California is missing the AI and semiconductor manufacturing boom. Companies like HVAC manufacturers serving TSMC facilities are considering leaving because all new semiconductor fabs are being built in other states. The full-stack job creation—from manufacturing to installation—is happening elsewhere due to California's hostile business environment, threatening the state's long-term economic position.
Notable Quotes
"Mrs. Thatcher's for the workers and labor are for the layabouts"
"Over a third of Californians cannot afford to meet basic needs"
"We are we are on the brink of leaving I don't think people realize quite quite how near the cliff edge we are"
"Our estimate was 425 billion. So averaged over the years it's about 80 billion a year. So that's so it's around, you know, 20% or so."
"I think that's pretty much the story of California, which is things that start with good intentions actually end up being taken to an extreme where it just makes it too expensive to build at a rate that people can afford to buy the properties"
Action Items
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1
Investigate Your State or Local Government Spending
Use publicly available data to track how tax dollars are actually spent. Look for discrepancies between stated purposes and actual expenditures. Hilton's CalDOGE used AI tools and public reports to uncover billions in misallocated funds—citizens can do similar analysis on a smaller scale with their local governments.
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2
Understand the Hidden Costs in Your Area
Research what regulatory requirements, fees, and mandates affect building costs in your region. Compare fees like California's $30,000 per door versus Texas's under $1,000. Understanding these structural costs helps you advocate for specific policy changes rather than vague calls for 'affordability.'
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3
Track Private Right of Action Lawsuits
If your state has environmental or other laws with private right of action provisions, track how these lawsuits are filed and by whom. California's CEQA shows that 70% of such lawsuits block housing and are filed mostly by unions for leverage—exposing these patterns can drive reform.
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4
Demand Sunset Clauses and Performance Metrics
When your government proposes new taxes or programs with specific stated purposes, demand sunset clauses and clear performance metrics. California's climate fund example shows how money gets redirected without accountability. Build in automatic review and termination if goals aren't met.