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CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win
Brief
Hilton’s campaign also emphasizes rooting out what he described as massive fraud and waste. He described four CalDoche reports estimating $425 billion in misallocated funds over five years (~20% of spending annually) and gave concrete examples: $1B in cap‑and‑trade mitigation money with only $72M reaching solar installations; $350M from cannabis‑tax allocations sent to hundreds of nonprofits; and $3.8B tied to Project Homekey. On housing he traced cost escalation to union leverage (project labor agreements, prevailing wage), CEQA litigation (private right of action used to block projects), and climate mandates (EV and solar requirements), citing a $30,000 per‑door fee in California vs. under $1,000 in Texas and asserting Texas produces ~3x more housing per capita. Energy and climate policy were discussed as well: Hilton said California now imports about 80% of its oil, has shrunk refinery capacity (from ~40 to 7), and that regulatory permitting (CalGEM) — changeable by the governor — restricts local production and raises prices. He argued education outcomes are poor despite ~$27,000 per‑pupil spending (47% basic English, 35% basic math) and proposed phonics, third‑grade reading gates, school/teacher grading and expanded choice. On crime and homelessness he urged reversing prison closures to relieve county jails, enforcing anti‑camp laws post‑Grants Pass v. Oregon (2024), compulsory sobriety requirements for services, and using IMD waivers to build larger mental‑health treatment capacity. The hosts repeatedly questioned legislative and political feasibility; Hilton stressed the electorate’s appetite for change, the potential of a Trump‑era Republican turnout base, the upcoming top‑two primary mechanics, and voter‑ID on the November ballot as elements of his path to victory.
Why it matters
Steve Hilton said he renounced his UK citizenship and is now a naturalized U.S. citizen running as a Republican for California governor (episode published 2026-04-29).
Key details
- Hilton proposed a tax plan: zero state income tax for households earning up to $100,000 and a 7.5% flat state income tax for incomes above $100,000; he estimated ~7 million households (roughly one-third) would benefit and that the change would require ~18.5% less revenue (~$60 billion) achieved by ~20% spending cuts.
- Hilton and his CalDoche team published four fraud reports estimating $425 billion of waste, fraud, and abuse over five years (~$80 billion/year, ~20% of annual spending); cited examples include $1.0 billion from the cap‑and‑trade mitigation fund where $72M went to solar installations and $928M to nonprofits, $350M from cannabis tax allocations, and $3.8B in questionable Project Homekey spending.
- On housing, Hilton attributed high costs to three structural forces: union power, litigation (CEQA), and climate-driven regulations; he claimed fees run about $30,000 per door in California versus under $1,000 in Texas and said Texas builds roughly three times as many new units per capita.
- On energy, Hilton said California now imports nearly 80% of the oil it consumes, has declined from ~40 refineries to 7, and sources significant crude from Iraq and South America — he argued regulatory permitting (CalGEM) rather than legislation has constrained in‑state production and can be changed by gubernatorial appointments.
- On education, Hilton cited California spending of about $27,000 per pupil with only ~47% meeting basic English standards and ~35% meeting basic math standards; he advocated phonics, third‑grade reading benchmarks with retention if unmet, school‑ and teacher‑level grading, and expanded school choice. On homelessness he argued enforcement (post‑Grants Pass v. Oregon, 2024), compulsory sobriety for services, and IMD‑waiver-backed mental‑health facilities would replace expensive supportive‑housing projects.