In just a few years, California went from a $100 billion budget surplus to a $30 billion structural deficit. How does the world’s fourth-largest economy wipe out that much cash so quickly? In this mini-episode State of Gold takes a hard look at CA’s out of control "spending spree" as well as the rampant waste and fraud plaguing Sacramento.

Noted experts break down the "regressive" nature of California’s current path, where middle-class residents are squeezed by electricity and gas prices while state government spending doubles over the past decade. Wipeout reveals the "perverse financial incentives" that allow social problems to grow, and fail, despite record spending.

Chapters
00:00 – The $100 Billion Wipeout: From Surplus to Deficit
00:08 – The Real Math: 60% Revenue Growth vs. 72% Spending Growth
00:16 – Fraud Exported: $30 Billion Sent to Scammers
00:34 – The 2022 Surplus vs. Today’s Structural Deficit
00:52 – Boiling the Frog: Expanding Government Beyond Inflation
01:11 – Twice the Spending, Half the Quality: The 10-Year Decline
01:19 – Misaligned Priorities: School Renaming & Zoom Classrooms
01:31 – Education Failure: Bottom Quintile Results Despite Billions Spent
01:51 – Fraud Everywhere: From Special Districts to Wildfires
02:00 – The Audit Gap: Why Lawmakers Ignore Solutions
02:30 – Siphoning Funds: Interest Groups and Spending Decisions
02:47 – Breaking the Basics: Failing to Deliver on Record Budgets
02:58 – The Tax Loop: Solvency vs. Accountability
03:15 – Next Week: The Existential Threat of the Billionaire Tax

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Guest:

Senator Catherine Blakespear

Guest Bio:

Catherine Blakespear represents the 38th District, covering northern San Diego County and southern Orange County. A lawyer and former journalist for the Los Angeles Times and Associated Press, she transitioned into public service as the Traffic Commissioner for Encinitas before serving eight years in local government, including six years as Mayor. Now in the State Senate, Blakespear chairs the Environmental Quality Committee and the Transportation Subcommittee on LOSSAN Rail Corridor Resiliency. Her legislative focus includes increasing housing affordability, preventing gun violence, and finding structural solutions to California’s homelessness humanitarian crisis.

Show Summary

It costs an average of $700,000 and takes seven years to build a single unit of housing in California—a reality Senator Catherine Blakespear calls "anathema to my sense of humanity". In this episode of State of Gold, Jon Slavet and Senator Blakespear tackle the "multi-billion dollar question" of why California’s housing and homelessness crises continue to spiral despite hundreds of new laws.Blakespear shares her unique perspective as a former Mayor who once fought against high-density mandates, explaining why she now believes the state must balance local control with the urgent need for a million new homes. The conversation takes a sharp turn into the "shocking" reality of the state's homelessness response. Blakespear reveals her firsthand findings after touring Care Court, describing it as a "resource-intensive group therapy" that fails to scale because it remains entirely voluntary.

In a rare moment of candor from the Democratic side, Blakespear argues it is time to move the "pendulum" back toward involuntary commitment for the gravely disabled, stating that leaving people to die in the elements is a violation of human rights. From the complexities of the insurance market and the Cap-and-Invest program to a debate over Gavin Newsom’s leadership, this episode is an essential look at the policies required to reclaim the "Golden State."

Chapters

00:00 – The Waiting Room: California’s Housing Math Problem
01:12 – From Mayor to Senator: The Battle Over High-Density Housing
02:43 – Public vs. Private: Solving the Million-Home Shortage
03:41 – Local Control: Why Some Cities Fight State Mandates
06:19 – Developers, Density, and the Insurance Crisis
08:28 – The "Stab in the Heart": Addressing the Humanity of Homelessness
09:06 – Functional Zero: Why "Permanent Housing Only" is Failing
11:24 – The Case for Involuntary Commitment: Moving the Pendulum
13:53 – Exposing Care Court: Why Voluntary Care Isn't Scaling
16:48 – Cap and Invest: Climate Goals vs. Affordability
19:43 – The Billionaire Tax and the Innovation Economy
21:49 – Assessing Gavin Newsom: Practicality vs. Policy

Connect with Catherine Blakespear

• Facebook: https://www.facebook.com/senatorblakespear/about/
• Twitter: https://x.com/Cblakespear
• Instagram: https

Enjoyed the episode? Subscribe to our podcast, leave a review on Apple Podcasts or Spotify and join the conversation on Instagram and LinkedIn with the hashtag #stateofgoldpodcast

Connect with State of Gold

• X: https://x.com/realjonslavet
• Linked In: https://www.linkedin.com/company/stateofgold/about
• Instagram: https://www.instagram.com/stateofgoldpodcast/?hl=en
• Website: www.stateofgold.com

California is at a tipping point. With over two-thirds of residents believing the state is on the "wrong track," the race for the Governor’s mansion has turned into a high-stakes battle for the future of the Golden State. In this special episode, recorded live from the April 2026 CA GOP Convention, Jon Slavet sits down with the state’s brightest Republican political minds to break down the chaos of the primary season and the path to a Republican victory.

The conversation centers on the "insanity" of current leadership and the rise of optimistic conservative voices like Steve Hilton. The panel dives into the sudden "implosion" of Democratic frontrunner Eric Swalwell and the reshuffling of the voter pool that follows. They also pull back the curtain on the "math problem" facing Republicans: Can they successfully navigate a top-two primary to shut out the Democrats, or will a splintered field leave the GOP on the sidelines?

From "kitchen table issues" like the affordability crisis and public safety to the influence of national endorsements, this episode provides a strategic roadmap for how a Republican can win over independents and center-right Democrats in a state where they are outnumbered 2-to-1. It is a candid look at the policies, personalities, and "political earthquakes" that will define California’s next chapter.

Chapters

00:00 – Live from the GOP Convention: Is it Darkest Before the Dawn?
01:33 – The "Wrong Track" Majority and the Search for a Plan
02:44 – The Hilton Strategy: Positioning Beyond the MAGA Tag
03:18 – Nationalizing the Race: How Democrats Avoid Owning Their Record
04:42 – Crossing the Chasm: Appealing to Independents Post-June 2nd
06:57 – The Swalwell Implosion: Allegations of Mortgage and Election Fraud
09:33 – Kitchen Table Wins: Prioritizing People Over Partisanship
12:01 – Hilton vs. Bianco: The Power of the Ballot Designation
13:19 – The Primary Math Problem: Avoiding a Democratic Shutout
15:20 – Tom Steyer and the $500 Million "Ego Trip"

Enjoyed the episode? Subscribe to our podcast, leave a review on Apple Podcasts or Spotify and join the conversation on Instagram and LinkedIn with the hashtag #stateofgoldpodcast

Connect with State of Gold

• X: https://x.com/realjonslavet
• Linked In: https://www.linkedin.com/company/stateofgold/about
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• Website: www.stateofgold.com