California Politics 360 Full Episode | One month until highly-anticipated May budget revision
Governor Newsom and state lawmakers have less than three months to agree on a balanced budget before the next fiscal year starts on July 1.
GOVERNOR NEWSOM AND LAWMAKERS ARE ON THE CLOCK. THEY HAVE THREE MONTHS TO SOLVE THE STATE’S BUDGET CRISIS. THAT’S ESTIMATED TO BE SHORT BILLIONS. THE ROLE THE WAR IN IRAN HAS PLAYED IN CALIFORNIA’S FINANCIAL STATE, TACKLING RISING ELECTRICITY RATES. THE PUBLIC IS DEMANDING IT. I MEAN, YOU KNOW, THEY’VE BEEN STRUGGLING TO PAY THE BILLS HERE IN CALIFORNIA, AND THEY WANT TO SEE REAL ACTION AFTER SIMILAR EFFORTS TO CUT COSTS FAILED. WHY LAWMAKERS ARE HOPING A NEW PROPOSAL COULD BREAK THROUGH SITTING DOWN WITH CANDIDATES FOR GOVERNOR. I SEE SO MANY FAMILIES THAT ARE STRUGGLING RIGHT NOW AND, YOU KNOW, THE PEOPLE WHO WORK SO HARD AND THERE ARE PEOPLE WE KNOW, DEMOCRAT BETTY YEE ON HER VISION FOR CALIFORNIA. THANK YOU FOR JOINING US FOR CALIFORNIA POLITICS 360. I’M EDIE LAMBERT IN THIS WEEK FOR ASHLEY ZAVALA. WE’RE GETTING INTO CRUNCH TIME NOW FOR CALIFORNIA’S BUDGET. COVERAGE OF THE BUDGET SOMETIMES COMES ACROSS AS THIS MIND NUMBING SET OF HUGE NUMBERS, BUT REALLY IT’S ABOUT YOUR ROADS, YOUR SCHOOLS, HEALTH CARE, THE ENVIRONMENT, ALL OF THE SERVICES YOU EXPECT FROM THE STATE. AND GOVERNOR NEWSOM AND LAWMAKERS ARE DOWN TO THE LAST THREE MONTHS NOW TO AGREE ON A BUDGET FOR THE NEXT YEAR. HERE’S THE CHALLENGE. THE STATE IS FACING A MULTI-YEAR DEFICIT, AND THEY ARE SHORT BILLIONS TO PAY FOR PROGRAMS THAT PEOPLE DEPEND ON. THIS PROCESS STARTED BACK IN JANUARY. GOVERNOR GAVIN NEWSOM RELEASED A NEARLY $350 BILLION BUDGET THAT WAS BASICALLY A FIRST DRAFT. IN LESS THAN A MONTH, HE’LL RELEASE A HIGHLY ANTICIPATED REVISION BASED ON THE LATEST ESTIMATE OF HOW MUCH MONEY IS COMING IN. AND THAT’S WHERE LAWMAKERS AND THE PUBLIC WILL GET A BETTER UNDERSTANDING OF WHAT WILL BE FUNDED AND WHAT WILL BE CUT. SO FOR A LOOK AT WHERE THAT STANDS, H.D. PALMER IS HERE NOW WITH THE GOVERNOR’S DEPARTMENT OF FINANCE. THANK YOU SO MUCH FOR BEING HERE. THANKS FOR HAVING ME. WELL, LET’S START OUT WITH JUST THE CURRENT HEADLINES. THE WAR WITH IRAN. WE’VE SEEN BIG FLUCTUATIONS IN THE STOCK MARKET, THE PRICE OF OIL AFFECTING THE PRICE OF GAS. HOW DOES ALL OF THAT AFFECT OUR STATE’S ECONOMY? AND OF COURSE, LOOKING AT THIS RIGHT NOW, THE STATE BUDGET, WELL, IT AFFECTS US ALL AND IT COMPLICATES THE PROCESS OF GETTING A BUDGET DONE. THERE’S USUALLY SOMETHING THAT NOBODY EXPECTS WHEN WE’RE GOING THROUGH THE PROCESS OF GETTING IN BETWEEN JANUARY AND MAY. SIX YEARS AGO WAS COVID. LAST YEAR IT WAS THE THREAT OF TARIFFS. NOW IT’S THE IRAN WAR. ALL OF THOSE THINGS PLAY INTO HOW OUR ECONOMIC FORECAST IS GOING TO LOOK FOR THE UPCOMING REVISED BUDGET. AND THAT FEEDS INTO WHAT WE EXPECT TO GET ON REVENUES, WHICH ALSO FEEDS INTO HOW BIG OF A PROBLEM DO WE HAVE TO SOLVE FOR. SO AS WE’RE LOOKING AT THIS IMPACT, WHAT HAVE YOU SEEN SO FAR? SOME OF THESE THINGS ARE LONGER. YOU KNOW, IT TAKES A WHILE FOR IT TO FILTER DOWN, BUT WHAT ARE YOU ALREADY SEEING? WELL, SO FAR IN TERMS OF REVENUES, WE’RE DOING PRETTY WELL SO FAR THIS YEAR COMPARED TO WHAT WE THOUGHT WE WERE GOING TO BE IN JANUARY. WE’RE ABOUT $7 BILLION AHEAD OF WHERE WE THOUGHT WE WERE GOING TO BE IN OUR FORECAST. OBVIOUSLY, A GOOD SITUATION, BUT APRIL IS OUR BIGGEST MONTH FOR OBVIOUS REASONS. APRIL 15TH, THE TAX DEADLINE DAY. WE ARE FORECAST SAYS THAT WE ANTICIPATE RECEIVING $21 BILLION IN PERSONAL INCOME TAX REVENUE JUST IN THE MONTH OF APRIL ALONE. AND HOW CLOSE WE ARE TO OUR FORECASTS IS GOING TO HAVE A BIG DETERMINING FACTOR ON WHAT THE REVISED BUDGET IN MAY LOOKS LIKE. AND SO WE’RE WAITING TO SEE WHAT THOSE FIGURES ARE. WE’RE UPDATING OUR ECONOMIC FORECAST. OUR FORECASTERS ARE TALKING TO THEIR COUNTERPARTS IN OTHER STATES AND EXPERTS OUTSIDE OF GOVERNMENT TO SAY, WHAT ARE YOU SEEING THAT WE SHOULD KNOW ABOUT THAT FINE TUNES OUR FORECAST. OBVIOUSLY, THE ISSUE IN TERMS OF THE WAR AND WHAT THAT’S DOING TO ENERGY PRICES IS VERY IMPORTANT BECAUSE THAT PLAYS THROUGH INTO THINGS LIKE CONSUMER SPENDING. ALL OF US HAVE SEEN AT LEAST WE’VE PROBABLY SEEN OUR GAS BILLS GO UP ABOUT A DOLLAR AND A QUARTER, A GALLON OVER THE LAST 7 OR 8 WEEKS. AND THE EXPERTS ARE TELLING US THAT EVEN IF THE WAR WERE TO COME TO AN END WITHIN THE NEXT WEEK, IT’S NOT GOING TO SNAP BACK TO WHERE IT WAS BEFORE IN TERMS OF OF THE PRICE OF ENERGY THAT’S GOING TO HAVE TO PLAY OUT OVER TIME. WE HAVE TO MAKE AN ASSESSMENT ON WHERE THAT’S GOING TO GO IN TERMS OF HOW IT AFFECTS THE ECONOMY. THE OTHER THING THAT COMES OUT OF THE GULF IS HELIUM. IT’S NOT JUST THE ISSUE OF WHAT GOES INTO THOSE INFLATABLE BALLOONS. HELIUM IS A CRITICAL PART OF SEMICONDUCTOR TECHNOLOGY, WHICH WE VERY MUCH INTO OUR OUR HIGH TECH ECONOMY IN THE STATE. SO WE’VE GOT TO LOOK AT ALL OF THOSE THINGS AS WE’RE GOING THROUGH AS WELL AS DOMESTIC DEVELOPMENTS, WHAT’S GOING ON WITH THE FEDERAL RESERVE IN TERMS OF INTEREST RATES, THINGS OF THAT SORT. INTERESTING TO TO THIS POINT, YOU WERE DOING A LITTLE BETTER DESPITE TARIFFS AND SOME OF THE OTHER THINGS THAT WE WERE TALKING ABOUT BEFORE THE WAR. SO WHERE DOES THE DEFICIT STAND NOW? AT THE TIME WE LAST ESTIMATED OUR DEFICIT IN JANUARY, WE ANTICIPATED HAVING TO CLOSE A $3 BILLION PROBLEM FOR THE FISCAL YEAR THAT BEGINS ON JULY THE 1ST OF THIS YEAR. ON TOP OF THAT, WE PROJECTED A SHORTFALL OF $22 BILLION FOR THE NEXT FISCAL YEAR. GOVERNOR SAID. IN THE BEGINNING OF THE YEAR I WANT TO SOLVE NOT JUST THIS COMING YEARS PROBLEM BUT THE FOLLOWING YEAR’S PROBLEM. EVEN THOUGH HE’S NOT GOING TO BE HERE. THE LEGISLATIVE ANALYST HAS SOME DIFFERENT ESTIMATES ON THAT. WE WERE WORKING THROUGH THOSE, AND WE WILL BOTH HAVE UPDATED ESTIMATES IN SEVERAL WEEKS. WHEN THE GOVERNOR’S REVISED BUDGET COMES OUT. BASED ON THAT UPDATED ECONOMIC FORECAST AND THE UPDATED REVENUE FORECAST AND WHAT’S HAPPENED ON THE SPENDING SIDE OF THE BUDGET SINCE WE LAST MADE OUR PROJECTIONS IN JANUARY, WHICH IS WHAT WHICH IS STILL BEING LOOKED AT RIGHT NOW. WE’RE STILL REVIEWING THOSE CASELOAD AREAS FOR THINGS LIKE MEDI-CAL, THE STATE’S VERSION OF MEDICAID. 1 IN 3 CALIFORNIANS GETS THEIR HEALTH CARE THROUGH MEDI-CAL, AND THAT’S A HUGE COST ISSUE FOR THE STATE. WE’RE UPDATING OUR NUMBERS ON THAT. WE WON’T HAVE THAT FINE TUNED. WE’LL BE FINE TUNING OVER THE NEXT SEVERAL WEEKS. AS YOU ARE LOOKING AHEAD, WE HAVE A DEMOCRATIC GOVERNOR. WE HAVE A DEMOCRATIC SUPERMAJORITY. WHERE WILL THE ACTUAL BATTLES COME IN ONCE THE REVISED HITS? WELL, I THINK YOU’VE SEEN A LITTLE BIT OF THAT SO FAR. THERE’S UNDERSTANDABLY WHEN THINGS ARE A LITTLE BIT BETTER THAN THEY WERE RELATIVE TO JANUARY. A LOT OF PEOPLE WANT TO RESTORE FUNDING FOR PROGRAMS THAT WE HAVE NOT FUNDED OR PROPOSING TO FUND IT AT PRIOR LEVELS GOING FORWARD, BECAUSE THE GOVERNOR SAID WE NEED TO CLOSE A TWO YEAR BUDGET GAP AND NOT ONE, UNDERSTANDABLY, SOME PEOPLE WANT TO GO BACK AND REVISIT SOME OF THOSE DECISIONS THAT WERE MADE LAST YEAR. OTHER PEOPLE ARE LOOKING TO THE REVENUE SIDE OF THE EQUATION, NOT THE GOVERNOR. HE DIDN’T PUT IT INTO JANUARY BUDGET, BUT SOME PEOPLE ARE TALKING ABOUT REVENUE INCREASES. SO ALL OF THOSE THINGS ARE GOING TO BE IN THE DISCUSSION MIX. THAT’S GOING TO HAPPEN REALLY IN REALLY TEE OFF. WHEN THE GOVERNOR’S REVISED BUDGET COMES OUT ON MAY THE 14TH. OKAY. THANKS FOR THE WORK YOU DO. IT IS TOUGH WORK TO COME UP WITH A BUDGET WHEN YOU DON’T ACTUALLY KNOW HOW MUCH MONEY YOU HAVE. SO WE APPRECIATE THAT. AND THANKS FOR KIND OF MAKING SENSE OF IT FOR US BECAUSE THESE ARE, YOU KNOW, COMPLICATED ISSUES. WE APPRECIATE THAT. SO WHO WILL VOTERS CHOOSE FOR CALIFORNIA’S NEXT GOVERNOR? NEXT ASHLEY ZAVALA CONVERSATION WITH DEMOCRATIC CANDIDATE BETTY YEE, INCLUDING HER PLAN TO TACKLE THE STATE’S MULTIYEAR BUDGET DEFICIT. JOIN US FOR THE 70TH CELEBRATION AT THE HAPPIEST PLACE ON EARTH. THIS YEAR, CALIFORNIA VOTERS WILL CHOOSE THEIR NEXT GOVERNOR. SO EVERY WEEK LEADING TO THE JUNE PRIMARY, WE’LL HEAR FROM ONE OF THE TOP TEN CANDIDATES RUNNING FOR THE STATE’S HIGHEST POSITION THIS WEEK. OUR POLITICAL DIRECTOR, ASHLEY ZAVALA, SAT DOWN WITH DEMOCRATIC CANDIDATE BETTY YEE TO GET HER THOUGHTS ON THE MAJOR ISSUES IMPACTING CALIFORNIANS. SITTING DOWN WITH BETTY YEE. I HAVE TO SAY, AS A NATIVE CALIFORNIAN, FIRST GENERATION CALIFORNIAN, AND YOU KNOW, I HAD A TOUGH UPBRINGING BEING A DAUGHTER OF IMMIGRANTS. BUT I SEE SO MANY FAMILIES THAT ARE STRUGGLING RIGHT NOW. THE DEMOCRATIC FORMER STATE CONTROLLER IS HOPING TO MAKE HISTORY BY BEING THE FIRST WOMAN ELECTED CALIFORNIA GOVERNOR. RIGHT NOW, THE STATE IS IN A SITUATION WHERE OUR BUDGET AND LEGISLATIVE EXPERTS HAVE SAID THERE WILL BE A NEED TO EITHER CUT SPENDING OR RAISE TAXES. WHICH DO YOU SEE YOURSELF CHOOSING? I THINK WE HAVE TO DO BOTH. WE HAVE TO DO BOTH. WE HAVE A STRUCTURAL DEFICIT. WE’VE BEEN SPENDING MORE THAN WHAT WE BRING IN FOR QUITE A FEW YEARS NOW IN TERMS OF CUTTING, CUTTING SPENDING. I WANT TO JUST BE SURE THAT WE ARE ALSO DOING EVERYTHING TO WRING OUT ALL THE INEFFICIENCIES IN GOVERNMENT AS WELL. AND THERE’S A LOT OF IT LIKE WHERE SO I WOULD SAY IN HEALTHCARE PARTICULARLY, WE HAVE JUST SO MANY LAYERS OF WHERE WE’RE GETTING TO THE POINT OF WHERE WE’RE GETTING A DECISION ABOUT HOW WE SERVE PEOPLE. AND SO I THINK THAT CAN BE STREAMLINED. YEE SAID SHE WOULD CONTINUE PROVIDING THE STATE’S HEALTH INSURANCE FOR LOW INCOME PEOPLE TO UNDOCUMENTED IMMIGRANTS ON PUBLIC SCHOOLS. SHE SAYS THE STATE NEEDS A MAJOR RESET. SCHOOL DISTRICT BUDGETS ARE SO BURDENED WITH A LOT OF COST DRIVERS AND AND NOT ANYTHING UNLIKE WHAT WE’RE ALL FACING WHEN UTILITY COSTS GO UP. YOU CAN MAGNIFY THAT FOR A SCHOOL DISTRICT. AND WHEN OUR HEALTH CARE COSTS GO UP, I MEAN, AGAIN, MAGNIFIED FOR SCHOOL DISTRICTS. SO I WOULD LOOK AT A COUPLE THINGS. ONE, THE RESET HAS TO BE WHERE ARE WE MAKING PROGRESS IN TERMS OF STUDENT PERFORMANCE AND CLOSING THE ACHIEVEMENT GAP AND COMMIT TO CONTINUING TO FUND WHAT WORKS AND NOT JUST KIND OF CREATE FUNDING FOR WHATEVER MAY WORK, BUT WE ACTUALLY HAVE PROVEN EXAMPLES OF HOW WE CAN SUSTAIN STUDENT ACADEMIC PERFORMANCE. HOW WOULD YOU LOWER COSTS FOR CALIFORNIANS, SPECIFICALLY? A COUPLE THINGS. I DO THINK THAT HOUSING IS JUST SUCH A STABILIZER. AND SO I WANT TO BE SURE THAT WE ARE DOING EVERYTHING WE CAN TO ACCELERATE ADDING MORE HOUSING TO OUR HOUSING STOCK SO THAT HOPEFULLY WE CAN STABILIZE PRICES AND HAVE PEOPLE HAVE MORE ACCESS TO, TO HOUSING, TO AFFORDABLE HOUSING. I WOULD LOOK AT STABILIZING RENTS AS WELL. THIS IS NOT TO PUT LANDLORDS OUT OF BUSINESS BY ANY MEANS, BUT WHEN YOU HAVE CHURNING IN A COMMUNITY THAT THEN HAS FAMILIES HAVING TO THINK ABOUT NOT BEING HERE FOR THE LONG TERM, I MEAN, THAT’S GOING TO AFFECT WHAT SCHOOLS ARE GOING TO HAVE TO DEAL WITH. I WOULD ALSO LOOK AT THINGS THAT ARE HAPPENING IN PEOPLE’S LIVES THAT ARE JUST RELATED TO THE DAILY COST OF LIVING, ELECTRICITY BILLS GOING UP, YOU KNOW, LOOKING AT MY PUBLIC UTILITIES COMMISSION IS GOING TO HAVE THE FULL AUTHORITY TO EXERCISE THEIR AUDIT POWERS TO BE SURE THAT EVERY RATE INCREASE THAT WE’RE GRANTING OUR UTILITIES ARE ACTUALLY BEING DIRECTED TOWARDS MAKING IMPROVEMENTS. WITH THE NATIONAL CONVERSATION ON GOVERNMENT WASTE, FRAUD AND ABUSE, YEE SAYS SHE HAS THE AUDITING AND TAXPAYER PROTECTION EXPERIENCE FROM HER TIME AS STATE COMPTROLLER. WHAT MY TEAM AND I DID, WE SCRUTINIZED EVERY PAYMENT THAT WAS REQUESTED OF EVERY DEPARTMENT TO BE SURE THAT WE HAD AUTHORITY TO PAY. WE LOOKED AT WHERE THERE WAS DUPLICATION, WHERE THERE WAS WASTE, AND, YOU KNOW, OVER THE TEN YEARS THAT I WAS COMPTROLLER, WE WERE ABLE TO UNCOVER ABOUT $7.3 BILLION. BUT DURING THE PANDEMIC, YEE WORKED BEHIND THE SCENES TO QUICKLY APPROVE A QUESTIONABLE, NEARLY HALF $1 BILLION PAYMENT TO A MEDICAL STARTUP COMPANY FOR N95 MASKS, A DEAL THAT ENDED UP BEING FLAWED AND RESULTED IN A MAJOR BANK SUING THE STATE. YOU WERE SUPPOSED TO BE THE GAP. STOP THERE. JUST WHAT DID YOU LEARN FROM THAT SITUATION? WELL, I WILL SAY I DIDN’T APPROVE ANYTHING. I WAS IN TOUCH WITH THE VENDOR. THIS WAS IN THE EARLY DAYS OF THE PANDEMIC. PEOPLE WERE LOOKING FOR MASKS, PPE. I WAS IN THE OFFICE EVERY DAY WITH A LIMITED TEAM. WE WERE TAKING CALLS. STATE WORKERS WERE LOOKING FOR MASKS. FIRST RESPONDERS, LIKE NURSES, WERE LOOKING FOR MASKS. WE HAD OUR ESSENTIAL WORKERS, RATHER, WE HAD JUST EVERYONE CALLING, WHERE CAN WE GET MASKS? WHERE CAN WE GET MASKS? I GET A CALL FROM A VENDOR WHO WANTED TO LET ME KNOW. HE HAD A SHIPMENT OF MASKS AT THE PORT OF LONG BEACH. CAN SOMEBODY COME AND LOOK AT THEM? I CALLED THE GOVERNOR’S OFFICE. I LET THEM KNOW, AND THEY NEVER GOT A CALL BACK. AND THEY SAID, WELL, THAT SHIPMENT IS GONE. YOU KNOW, WHO ELSE CAN I TALK TO? THEN HE WANTED TO KNOW ABOUT THE STATE PROCUREMENT PROCESS. I DON’T MAKE PROCUREMENT DECISIONS. I DIDN’T AUTHORIZE ANYTHING. I REFERRED EVERYTHING ON ON CRIME. YI SAYS SHE DID NOT SUPPORT THE LAW. VOTERS PASSED TO RAMP UP CONSEQUENCES FOR REPEAT THIEVES AND DRUG DEALERS. SHE SAYS THE STATE NEEDS TO INVEST IN PROGRAMS THAT CAN HELP PEOPLE REENTER INTO SOCIETY WHO COMMIT CRIMES. WHAT GRADE WOULD YOU GIVE GOVERNOR GAVIN NEWSOM FOR THE LAST TWO TERMS AS GOVERNOR, I WOULD SAY BEFORE I GIVE THE GRADE, I WILL GIVE YOU GRADE. LET ME JUST SAY HOW MUCH I APPRECIATED HIM, PARTICULARLY DURING THE PANDEMIC. YOU KNOW, TO BE A GOVERNOR THAT WAS PRESENT JUST MAY NOT HAVE AGREED WITH HIM, BUT JUST, YOU KNOW, OBVIOUSLY IN COMMAND OF THE SITUATION AND BRINGING ALL THE RESOURCES TO BEAR ABOUT HOW TO MOVE CALIFORNIA FORWARD. SO I REALLY JUST GIVE THEM HIGH MARKS FOR THAT. I ALSO WANT TO APPLAUD HIM FOR JUST PUSHING BACK REALLY HARD AGAINST THIS TRUMP ADMINISTRATION. I WOULD, HOWEVER, DO THAT ON THE POLITICAL SIDE, NOT ON THE PUBLIC SIDE. JUST SO IT’S CLEAR THAT WHAT WE DO ON THE PUBLIC SIDE IS THAT WE’RE GOVERNING AND DELIVERING FOR CALIFORNIANS. AND THAT’S WHERE I THINK WE’VE KIND OF LOST OUR WAY. WE HAVEN’T BEEN KEEPING, YOU KNOW, KIND OF A STEADY FOOT ON THE PEDAL RELATED TO THAT, I WOULD GIVE HIM A B MINUS. IF YOU ARE ELECTED GOVERNOR, WHAT ARE THREE WORDS THAT YOU WOULD USE TO. DESCRIBE CALIFORNIA’S FUTURE UNDER YOU? ARE. COMPETENT, ACCOUNTABLE LEADERSHIP. RIGHT NOW ON CAL POLITICS. 360.COM. AND WE WANT TO HEAR FROM YOU. SEND US AN EMAIL TO CONTACT AT CAL POLITICS 360.COM. ELECTRICITY RATES HAVE BEEN RISING ALL ACROSS THE COUNTRY, AND CALIFORNIANS ARE DEALING WITH THE FOURTH MOST EXPENSIVE ELECTRICITY RATES IN THE NATION RIGHT NOW. STATE LAWMAKERS ARE CONSIDERING A PROPOSAL TO REDUCE THE RATES BY 30%. EARLIER THIS WEEK, LYSEE MITRI SAT DOWN WITH THE BILL’S AUTHOR, ASSEMBLY MEMBER JAMES GALLAGHER. AND HERE’S PART OF THAT CONVERSATION. ELECTRICITY RATES. WE KNOW RATES HAVE GONE UP 40% IN THE PAST SIX YEARS. YOU HAVE A PROPOSAL TO TRY TO TACKLE THAT. WHAT HAS THE RESPONSE BEEN LIKE FROM YOUR COLLEAGUES ON BOTH SIDES OF THE AISLE? YEAH, I MEAN, WELL, SINCE 2013, WE’VE HAD RATES GO UP EVERY YEAR ANNUALLY ON AVERAGE 12% A YEAR. AND SO THAT’S A HUGE INCREASE THAT WE’VE SEEN WAY PAST, YOU KNOW, THE, YOU KNOW, INFLATION. AND, YOU KNOW, IT’S SUCH A HUGE ISSUE FOR MY CONSTITUENTS. I HEAR ABOUT IT ALL THE TIME. LIKE THE RATES JUST KEEP GOING UP AND UP. AND YOU KNOW, THE WHOLE. SORT OF PROBLEM WITH THAT IS THAT, YOU KNOW, WE KNOW AND WE’VE SEEN REPORT AFTER REPORT THAT THERE ARE WAYS WE COULD CUT RATES AND THAT WE COULD BRING DOWN COSTS, YOU KNOW, FOR THE CONSUMER. AND SO I’M JUST SAYING, HEY, IT’S ABOUT TIME WE DID THAT. LIKE, LET’S TAKE SOME OF THESE RECOMMENDATIONS. LET’S FIND WAYS TO ACTUALLY LOWER PEOPLE’S RATES. I DON’T WANT TO JUST STOP THEM FROM GOING UP. I WANT TO STOP. I WANT TO ACTUALLY MAKE THEM GO DOWN BECAUSE PEOPLE NEED RELIEF NOW. AND YOU DID HAVE A SIMILAR PROPOSAL THAT YOU INTRODUCED LAST YEAR, THAT ONE, IT’S MY UNDERSTANDING, DIED IN THE APPROPRIATIONS COMMITTEE. WHAT’S DIFFERENT THIS YEAR? HAVE YOU BEEN ABLE TO TALK TO SOME OF THE STAKEHOLDERS, THE CALIFORNIA PUBLIC UTILITIES COMMISSION? WELL, ONE, I THINK THE PUBLIC IS DEMANDING IT. I MEAN, YOU KNOW, THEY’VE BEEN STRUGGLING TO PAY THE BILLS HERE IN CALIFORNIA, AND THEY WANT TO SEE REAL ACTION. AND SO I’M HOPEFUL THAT WE’LL BE ABLE TO GET SOMEWHERE THIS YEAR. I MEAN, JUST TO GIVE SOME EXAMPLES, WE KNOW THAT THERE’S BEEN SEVERAL PROGRAMS THAT HAVE BEEN IDENTIFIED AS NOT COST EFFECTIVE BY THE PUC. YOU KNOW, THOSE ARE PROGRAMS THAT WE COULD TACKLE TO GET PEOPLE RELIEF. THERE’S THE CLIMATE CREDIT. WE COULD INCORPORATE THAT INTO RATES INSTEAD OF PEOPLE JUST GETTING LIKE A 30 TO $40 CLIMATE CREDIT ON ONE MONTH DURING, YOU KNOW, THEIR, YOU KNOW, DURING THE YEAR, WE COULD ACTUALLY INCORPORATE THAT INTO SAVINGS AND THEIR RATES. SO THEIR RATES ACTUALLY GO DOWN. SOME OF OUR CLIMATE POLICIES, CAP AND TRADE, FOR EXAMPLE, WE PAY MORE IN ELECTRICITY RATES BECAUSE OF THAT. AND YET THAT MONEY GOES INTO A FUND THAT RIGHT NOW IS GETTING IS SHORT CHANGING WILDFIRE PREVENTION FUNDING. YOU KNOW, HIGH SPEED RAIL IS GETTING $1 BILLION, RIGHT? WHILE WILDFIRE PREVENTION IS GETTING LESS THAN 200 MILLION. THAT’S COMPLETELY BACKWARDS, RIGHT? WE SHOULD BE DOING THAT TO REDUCE THE RISK THAT WE DON’T HAVE THESE CATASTROPHIC WILDFIRES. SO THERE’S LOTS OF THINGS THAT WE CAN DO. YOU KNOW, THAT COULD HELP REDUCE THOSE RATES. AND MY GOAL WITH THIS LEGISLATION IS BY 30%. I THINK THAT’S EASILY ACHIEVABLE. SPEAKING OF PG&E, SPECIFICALLY, THEIR ELECTRICITY PRICES HAVE GONE DOWN FOUR TIMES IN THE PAST TWO YEARS. THEY SAY IT’S NOW 11% LOWER THAN THEY WERE IN JANUARY OF 2024. IS THAT ENOUGH? I KNOW THAT’S WHAT THEY SAY. YOU KNOW, THE BOTTOM LINE IS NO ONE SEES THAT IN THEIR RATES. AND IN FACT, LIKE THE FIXED CHARGES HAVE GONE UP. AND SO AND EVERYBODY’S MONTHLY BILLS IS STILL HUNDREDS OF DOLLARS. YOU KNOW, TWO YEARS AGO, WE SAW SIX RATE INCREASES. AND I SAID 12, YOU KNOW, 12% ANNUALLY IS WHAT WE’VE SEEN ON AVERAGE. YOU KNOW, IT’S NOT SUSTAINABLE. PEOPLE CANNOT PAY THAT. AND WHEN THERE’S REAL WAYS TO REDUCE RATES, I’LL GIVE YOU ANOTHER ONE. I MEAN, YOU KNOW, THEY ARE COMING IN AND GOING TO THE PUC WITH THEIR WILDFIRE MITIGATION PLANS AND ESSENTIALLY GETTING THOSE RUBBER STAMPED. YOU KNOW, I’M HELPING SUPPORT LEGISLATION THIS YEAR THAT HELPS AUDIT THOSE FUNDS. AND IT’S ALSO PART OF MY LEGISLATION, 2700 AUDIT THOSE FUNDS. LIKE ARE THEY DOING EVERYTHING THAT THEY ARE THEY DOING THINGS THAT THEY NEED TO DO, OR ARE THEY DOING MORE THAN IS REALLY NECESSARY? AND IF SO, THEN THAT SHOULD BE GIVEN BACK IN, IN REBATES, YOU KNOW, REDUCTIONS AND RATES, YOU KNOW, TO CONSUMERS, TO RATEPAYERS. AND SO LIKE, THESE ARE ALL THINGS THAT WE COULD LOOK INTO THAT ULTIMATELY WOULD HELP LOWER RATES. ASSEMBLY MEMBER GALLAGHER ALSO TALKED ABOUT WHAT’S NEXT IN THE PROCESS AND THE LIKELIHOOD OF HIS BILL REACHING THE GOVERNOR’S DESK. YOU CAN FIND THAT ON CAL POLITICS, 360.COM VOTERS WILL BE DECIDING WHO’S IN CHARGE OF RUNNING AND PROTECTING OUR ELECTIONS. A LOOK AT THE RESPONSIBILITIES OF THE SECRETARY OF STATE. THIS YEAR, CALIFORNIA VOTERS WILL DECIDE WHO THEY WANT TO LEAD FUTURE ELECTIONS. SO BEFORE YOU VOTE, WE WANT TO EXPLAIN WHAT EXACTLY THE SECRETARY OF STATE OVERSEES. KURTIS MING BREAKS IT DOWN. CALIFORNIA IS ELECTING A SECRETARY OF STATE THIS YEAR. BUT WHAT DO THEY ACTUALLY DO? LET’S TAKE A LOOK INTO IT. THEY ARE CONSIDERED CALIFORNIA’S CHIEF ELECTIONS OFFICER. WHILE ELECTION LAWS ARE RUN BY EACH COUNTY, THE SECRETARY OF STATE COORDINATES WITH THE ELECTION OFFICERS AND MAKE SURE ELECTION LAWS ARE FOLLOWED. THE SECRETARY OF STATE PUBLISHES THEY ALSO COLLECT AND REPORT ELECTION RETURNS, AND THEY TEST THE VOTING EQUIPMENT. AND AT THE END OF THE ELECTION, THEY CERTIFY THE RESULTS OUTSIDE OF ELECTIONS, THE SECRETARY OF STATE KEEPS A RECORD OF EVERY OFFICIAL ACT OF THE GOVERNOR AND LAWMAKERS. THAT INCLUDES EVERY LAW THAT’S PASSED. THE SECRETARY OF STATE HAS A LIMIT OF TWO FOUR YEAR TERMS. SO HOW MUCH DOES THE SECRETARY OF STATE MAKE? LAST YEAR, THE JOB PAID $184,000. BACK TO YOU. AND AGAIN RIGHT NOW ON CAL POLITICS 360.COM. YOU CAN WATCH THIS WEEK’S FULL INTERVIEWS. WE ALSO WANT TO HEAR FROM YOU. WHAT ISSUES DO YOU WANT US TO COVER? SEND US AN EMAIL TO CONTACT AT CAL POLITICS 360.COM. THANK YOU FOR JOINING US FOR THIS WEEK’S CALIFORNIA POLITICS 360. WE’LL SEE YOU NEXT WEEK.
California Politics 360 Full Episode | One month until highly-anticipated May budget revision
Governor Newsom and state lawmakers have less than three months to agree on a balanced budget before the next fiscal year starts on July 1.
Updated: 11:00 AM PDT Apr 11, 2026
Next month, Governor Gavin Newsom will release his highly anticipated revision of the state budget. Governor Newsom and state lawmakers have less than three months to agree on a balanced budget before the next fiscal year starts on July 1. Edie Lambert sits down with H.D. Palmer with the Department of Finance to get an update on California’s financial state ahead of the May Revision. This year, California voters will decide who they want to be their next Governor. Every week leading to the June primary, we will hear from one of the top 10 candidates running for the state’s highest position. This week, Ashley Zavala sat down with Democrat Betty Yee to get her thoughts on the major issues impacting Californians. A proposal to reduce electricity rates by 30% moves forward at the State Capitol this week. Assembly Member James Gallagher explains the impact he hopes his legislation makes. We take a closer look at the responsibilities for California’s Secretary of State ahead of the June primary.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
Next month, Governor Gavin Newsom will release his highly anticipated revision of the state budget.
Governor Newsom and state lawmakers have less than three months to agree on a balanced budget before the next fiscal year starts on July 1.
Edie Lambert sits down with H.D. Palmer with the Department of Finance to get an update on California’s financial state ahead of the May Revision.
This year, California voters will decide who they want to be their next Governor. Every week leading to the June primary, we will hear from one of the top 10 candidates running for the state’s highest position. This week, Ashley Zavala sat down with Democrat Betty Yee to get her thoughts on the major issues impacting Californians.
A proposal to reduce electricity rates by 30% moves forward at the State Capitol this week. Assembly Member James Gallagher explains the impact he hopes his legislation makes.
We take a closer look at the responsibilities for California’s Secretary of State ahead of the June primary.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel