Newsletter - March 2026

Most people keep track of their income and their expenses. That is considered just good common sense. Citizens also have another place where income and expenses matter. That is government spending. Oh, where does government get its money to spend? That's right! From the people. So: who is keeping track of the income and expenses of the government? It should be the taxpayers but isn't it interesting how so many expenses are buried in mounds of regulations, boards and commissions? Let's take a look at how some of our tax money is spent in California. 

After the Camp Fire (2018), Governor Gavin Newsom pledged to upgrade California's antiquated 911 emergency response communications system. Therefore, between 2015 and 2019 California paid four technology companies over $450 million to build out its Next Generation 911(NG911) system. This is a more advanced emergency communication tool that would provide dispatchers with enhanced location services and other ways for the public to communicate with first responder operators. 

However, the system did not work so California Office of Emergency Services (OES) decided to abandon the plan and start again from scratch. Political journalist Dan Walters accurately noted that the "governmental landscape is littered with information technology projects that have failed to deliver the promised benefits, have experienced huge cost overruns or have been abandoned." 

How about "green projects" and government-subsidized energy schemes? The Ivanpah Solar Electric Generating System is a "solar thermal plant" in the Mojave Desert that uses mirrors to heat water and generate electricity. It was originally a large-scale renewable project which cost in the billions. It is slated for a partial shutdown/decommissioning because it did not meet the energy production targets and contracts with PG&E have been terminated. The plant is not competitive and kills birds by the thousands. By the way: the system requires natural gas in order to remain fully operational. 

We must note the fraud that occurred during COVID. The Employment Development Department (EDD) failed to verify the identities of individuals who were receiving benefits. Transnational organized criminal groups from China and Africa received billions of dollars which were used for child trafficking, drugs and terrorism. At the same time California taxpayers were struggling to stay afloat. $50 Billion in fraud was the cost of Covid in California.

Of course, we cannot ignore the train to nowhere. The California High-Speed Rail Authority was established in 1996 and voters approved funding via Proposition 1A in 2008. Construction started on the first 119 mile segment in the Central Valley in 2015. The High-Speed Rail project that was supposed to provide modern, rapid train service from San Francisco to Los Angeles has now cost roughly $13.8 to $15.7 Billion in state and federal funds as of early 2025. The full cost for the San Francisco to Los Angeles system is now projected to exceed $100 Billion to $128 Billion. It was initially estimated to cost $33 Billion. The project was supposed to be completed by 2020. At this time there is no working rail track. Secretary of Transportation Sean Duffy has pulled the plug on $4 Billion federal funds for the train. 

EDD spent over $4.6 Million on monthly service fees for over 6,200 mobile devices that remained unused for four or more consecutive months.

$24 Billion has been spent on homelessness initiatives with limited accountability or a cohesive, effective statewide plan. There are no clear metrics to measure results.

The California Air Resources Board (CARB) overpaid an employee by $171,446 because of poor documentation of leave hours.

The Department of Veterans Affairs failed to report over $400,000 in taxable housing benefits for employees.

Caltrans has been cited for spending including $50,000 for a single conference table and $64,200 for televisions.

State audits have been requested by lawmakers and taxpayers have paid for these audits. Grant Parks, the State Auditor, has provided detailed recommendations on fixing waste, fraud and oversight failures across state government. CBS News discovered that in most cases lawmakers did not act on the auditor recommendations. Lawmakers failed to enact roughly three out of every four state audit recommendations directed at the Legislature. More than 300 outstanding statutory fixes have been unresolved. 

Majority party leaders have quietly killed dozens of audit-backed bills in committee. Governor Newsom has vetoed at least a dozen more. The state has often paid no attention to auditor warnings which lead to as an example long-term paid leave for employees. 

Financial and tax issues have caused the departure of many Californians to other states. The state has been saved by the high-tech industry which has produced prodigious amounts of tax revenue from stock options and capital gains by the very wealthy. Unfortunately, our governor has proposed a "billionaire tax." Now, what do you think all of those billionaires will do? Leave California as a starter. Nothing like killing the goose that laid the golden egg. 

Let's not ignore the latest idea coming from Governor Newson.  In February, his administration announced $35 Million in new "humanitarian funding" to connect illegal immigrants facing federal deportation proceedings with attorneys, food assistance and legal navigation services. This comes in addition to the $125 Million California has already committed to the same cause. By the way: the Legislative Analyst's Office projects that the state's structural deficit will reach $35 Billion annually by 2028.

As we review the use of taxpayer money it becomes clear that many people in government are not doing the job the way it should be done. Elected officials and government staff have a job to do which is to follow the law and guarantee that the people's money is used as it is supposed to be used. California taxpayer money is meant for the people of California and their needs. Too much taxpayer money has gone to people who have no right to the funds and often have very dangerous goals. Unless California taxpayers learn, study the issues and VOTE, the Golden State will turn a very rusty color. The Gold is already tarnished.