Cinema News: Wait to see the bill from governor wannabes

May 11, 2026 | View in browser

By George Skelton

Capitol Journal Columnist

Wait to see the bill for all those free goodies promised by gubernatorial candidates.

Here’s what the Democratic candidates for governor aren’t telling us: While promising the moon, they’ve avoided saying how they would keep paying for all of Sacramento’s current costly programs.

Termed-out Gov. Gavin Newsom and the Democratic-controlled Legislature have dug the state into a deep financial hole, and it faces severe deficit spending through the next governor’s first term.

The only honest solution is an unpopular mix of program cuts and tax increases, plus a focused, earnest and unlikely effort at making government more cost-effective and efficient.

The worst option would be the easy one that got Sacramento into its current mess: gimmicky budgeting that includes excessive borrowing, program delays rather than outright eliminations and fudged numbers.

Nonpartisan Legislative Analyst Gabriel Petek recently estimated “the state faces structural deficits running from $20 billion to $35 billion annually.”

He warned the state’s financial commitments funded by its revenue “[are] not sustainable” and added that mopping up the red ink “will likely require at least some — if not significant — spending reductions.”

The analyst pointed out that since 2019, under Newsom, state general fund spending has risen by $100 billion to $248 billion in the governor’s latest budget proposal in January. About 70% of the growth went to maintaining existing services and 30% was for expanding or creating new programs.

“In retrospect,” Petek continued, “the state could not afford to sustain its existing services while funding … expansions and new programs.”

Last week, the analyst reported some good news coupled with bad. He estimated a $25-billion boost in unanticipated revenue, driven by artificial intelligence enthusiasm and “the related stock market boom.” But, he added, “these surging revenues likely are not sustainable.”

The analyst said the stock market appears to be “in a speculative bubble, rivaled only by the dot-com boom” (that led to the Great Recession) “and the Roaring ‘20s” (that ushered in the Great Depression).

“The state should be prepared for revenues to be tens of billions lower within one or two years.”

Newsom will get another crack at legitimately balancing a budget on Thursday when he revises his spending proposal for the next fiscal year.

You can’t really blame the governor’s wannabe Democratic successors for dodging this fiscal thicket. Program cuts and higher taxes don’t attract voters. Moreover, the subject is weedy and boring. For that reason, I suspect, moderators didn’t even delve into it during three recent televised gubernatorial debates.

Regardless, budget-crafting is a governor’s most sacred duty and the source of much of their power. It would help voters to know where the candidates stand. Right now, they’re in hiding.

Former state Senate leader Don Perata, a Democrat, posted this last week about the chronic deficits:

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“Apparently, candidates find this untroubling or maybe someone else’s worry. None … even mentioned it during those juvenile television ‘debates’ and the hundreds of millions spent on campaign commercials.”

Instead, various contenders have been promising voters a Santa’s sleigh of goodies: state-run single-payer healthcare, free childcare, partial no-tuition college, suspension of the gas tax, no state income tax for people earning under $100,000 and generous subsidies for Hollywood filmmaking.

Billionaire hedge fund founder Tom Steyer and former Orange County congresswoman Katie Porter have been touting single-payer healthcare, an idea pushed by politically potent nurses unions and Democratic progressives. Private insurance would be eliminated and, under most proposals, so would the popular Medicare. The state would manage all medical insurance — more efficiently and at less consumer expense, advocates insist.

But this concept seems far beyond the state’s financial reach and operational capability. Its cost could exceed twice the current state budget. And I shudder to think of our state bureaucracy trying to handle healthcare for 39 million people. First, get the DMV working right and the botched bullet train rolling.

For many years, underdog gubernatorial candidate Antonio Villaraigosa — a former Los Angeles mayor — has called the single-payer notion “snake oil.” In a CNN debate last week, he termed it “pie in the sky.”

Centrist San José Mayor Matt Mahan chimed in, asserting: “The candidates who are fighting for single-payer don’t know how to pay for it, and they’re not being honest about it.”

Practically everyone jumped on new Democratic frontrunner Xavier Becerra — former state attorney general and U.S. health secretary — for seemingly being unable to specify whether he’s for or against single-payer.

“I’ve been consistent for over 30 years,” he said, trying to explain that he favors Medicare-for-all as “the most efficient way that we can do healthcare.”

It was a silly waste of debate time. They were arguing over oranges and lemons — both citrus, but different. Becerra should have just made clear that he’s opposed to single-payer and supports a separate version of universal healthcare: Medicare-type coverage with a supplemental private insurance option for all Californians. If that’s indeed what he favors.

Mahan bragged that he’s “the only candidate in this race who is calling for a suspension of the gas tax.” It’s a highlighted Republican talking point. But no other Democratic candidate advocates suspending the tax because it’s a screwy idea.

The roughly 60-cent-per-gallon state gas tax pays for filling potholes and more serious road repairs and improvements. Moreover, the next governor won’t take office until January. Suspending the tax then — even if the Legislature approved — wouldn’t reduce today’s soaring pump prices.

My take on the debates:

Becerra survived. He’s refreshingly calm but needs to be more crisp.

Steyer was articulate and may have attracted Bernie Sanders fans.

Porter is a talented debater, but seemed overly defensive about her past hot temper.

Mahan was fine, but he just got off the bench and it’s late in the game.

Villaraigosa was straightforward as usual, and finally had a broad audience.

All should bone up on budget-balancing and tell us their thinking.