California
Walters: When California politicians ignore policy risks, failure often results
California’s governors and legislators have a very bad habit of enacting major programs and projects without fully exploring their downside risks.
The most spectacular example occurred in 1996, when a Republican governor, Pete Wilson, and a Democrat-controlled Legislature decided to overhaul California’s electric power industry.
The legislation was hammered out in lengthy and secret negotiations that participants dubbed the “Steve Peace death march” for the state senator who ramrodded the effort. It was enacted with only cursory public input.
As a 2003 autopsy of the ensuing disaster chronicled, “The act was hailed as a historic reform that would reward consumers with lower prices, reinvigorate California’s then-flagging economy, and provide a model for other states. Six years later, the reforms lay in ruins, overwhelmed by electricity shortages and skyrocketing prices for wholesale power. The utilities were pushed to the brink of insolvency and are only slowly regaining their financial footing. The state became the buyer of last resort, draining the general fund and committing itself to spending $42 billion more on long-term power deals that stretch over the next ten years.”
Other examples of the bad habit abound, such as beginning construction of a bullet train linking the two halves of the state with only rudimentary assumptions of its costs, ridership and other important factors — a project that limps along nearly two decades later.
Two others are the immensely costly expansion of pension benefits for public employees a couple of decades ago, which has hammered local government budgets, and big increases in unemployment insurance benefits without increasing revenues, which resulted in a $20 billion debt to the federal government that is still growing.
That brings us to Senate Bill 769, which appears superficially to be a positive effort to expand infrastructure financing but could be another example of unanticipated consequences. The measure, introduced by Sen. Anna Caballero, a Merced Democrat, would create the Golden State Infrastructure Corporation, a state-owned nonprofit company that could borrow money or issue bonds and provide financing for public or private infrastructure projects.
State Treasurer Fiona Ma is the bill’s sponsor and would appoint the corporation’s top executive, who would answer to a five-member board of elected officials and governors’ appointees.
“By partnering public and private capital, SB 769 enables critical investments in climate resilience, water systems, energy infrastructure, housing and transportation, creating jobs and future-proofing California for generations to come,” Caballero’s office contends.
“California can’t afford to wait for Washington, or for outdated financing systems to catch up with 21st-century needs,” she said in a statement. “SB 769 is about building a resilient, modern California by creating a smarter, more flexible way to fund infrastructure that protects our communities, creates good jobs and prepares us for the challenges ahead.”
There are aspects to the proposal that should be triggering alarm bells.
There is no limit on how much debt the corporation could incur. The state would also not be liable if its financial structure collapsed. The decisions on financing private projects could be made secretly because the corporation would be exempt from some open meeting and open records laws.
The danger here is that with a potentially unlimited amount of money to be handed out with no public input, the political figures on the corporate board could be swayed to play favorites for reasons disconnected from infrastructure improvement.
We’ve seen scandals of that sort elsewhere in state government, such as in the Coastal Commission’s land use decisions and the California Public Employment Retirement System’s investments.
Without better safeguards and more sunshine, this is another scandal waiting to happen.
Dan Walters is a CalMatters columnist.
California
California gubernatorial candidates weigh in on juvenile justice during Bay Area event
Juvenile justice was one of the hot topics discussed Friday as six candidates for California governor gathered in the South Bay.
During the meeting of the California State Association of Counties, most gubernatorial candidates agreed that the current way of approaching juvenile crime might need a revisit.
The discussion came on the heels of a shooting at Valley Fair mall in the South Bay. Investigators claim the suspected gunman, a 17-year-old who was already on probation for a gun crime, opened fire on a perceived gang rival in the crowded mall on Black Friday. The crime and the teen suspect have since fueled an ongoing debate over California laws regarding teen offenders.
Here’s some of what three of the gubernational candidates had to say on the matter.
Steve Hilton: “On crime, we gotta challenge the ideology that has been pushed for so long: criminal justice reform, decarceration, not holding people accountable. That’s the disaster.”
Xavier Becerra: “We absolutely have to revisit anything that allows kids to be killed by kids.”
Katie Porter: “I think one of the lessons that the data probably shows about juvenile justice is when you allow the problem to continue, the interventions then don’t work.”
Both Becerra and Porter also noted that while they believe reform is needed, they don’t believe an “incarcerate them all” attitude is the answer.
NBC Bay Area was unable to speak about the issue with the other three candidates who attended the event.
California
Key California laws taking effect in 2026
A raft of new legislation is set to take effect for Californians in 2026 after Governor Gavin Newsom signed hundreds of bills over the past year.
The new legislation affects a wide range of issues, such as reducing drug costs, increasing the minimum wage and possibly barring police officers and federal agents from wearing face masks.
Why It Matters
Many of the measures reflect the state’s ongoing push to address affordability, equity and transparency—often amid tension with President Donald Trump’s White House.
The changes directly affect millions of residents, employers, landlords, students and consumers in the nation’s most populous state, serving as a bellwether for legislative trends nationwide.
What To Know
Here is a breakdown of some of the key laws set to go into effect in California in 2026:
- Minimum wage increase
The minimum wage is set to increase across the state from $16.50 to $16.90 per hour for all employees.
Several local municipalities are also increasing their minimum wages further, as they are allowed to set wages higher than the state minimum.
- Reduction to drug costs
From January 1, Senate Bill 40 would require large state-regulated health insurers to cap insulin co-pays at $35 for a 30-day supply. The same requirement takes effect for smaller plans in 2027.
Californians would also have access to low-cost, state-branded CalRx insulin, priced at $55 for five pens.
- Gender-neutral restrooms in schools
Starting July 1, every California public school must provide at least one gender-neutral restroom, as mandated by SB 760.
- Police identification and mask ban
From January 1, local and federal law enforcement officers would generally be barred from wearing masks to conceal their identities and must display visible identification when performing enforcement duties.
These measures, codified in SB 627 and SB 805, are facing legal challenges from federal entities.
Tricia McLaughlin, a Department of Homeland Security spokesperson, said the department would not comply with the law.
- Ban on cat declawing
Declawing cats for nonmedical reasons is set to be prohibited statewide. The practice is widely condemned as inhumane by animal welfare advocates.
- Combating auto scams
Consumers who buy or lease a new or used car from a dealer would have the right to return it for a full refund within three days of purchase. California is set to become the first state in the nation to offer the protection.
- Single-use plastic bag ban
From January 1, major changes to the state’s plastics policy go into effect, banning all plastic carryout bags—even thicker varieties previously permitted. Stores would only be allowed to distribute recycled paper bags, subject to a minimum charge.
- AI transparency and protections
AI operators must clearly disclose when chatbots are not real people, and companies must implement safeguards to prevent chatbots from encouraging self-harm in minors.
Additional AI regulations are set to increase transparency, ban chatbots from impersonating health care professionals and require new police reporting on AI use.
- Required appliances in rentals
Landlords would be legally required to provide working refrigerators and stoves in rental apartments from January 1.
- Extended window for sexual assault lawsuits
A new law, AB 250, creates a two-year window—from January 1, 2026, to December 31, 2027—for adult survivors of sexual assaults to file lawsuits alleging a cover-up. It would allow these individuals to file cases even if the usual statute of limitations lapsed.
What People Are Saying
California Governor Gavin Newsom said in October regarding the legislation on drug costs: “I am pleased to sign SB 41, a bill that will lower health care costs for all Californians. This bill, together with related efforts in the 2025 budget and CalRx, represents the most aggressive effort in the country to lower prescription drug costs. California continues to lead the way in lowering costs, increasing transparency, and ensuring that the savings are passed on to payers and consumers.”
He wrote in a letter in September regarding the ban on officers wearing masks: “Acting on behalf of an authoritarian President, federal immigration authorities are spreading fear and terror throughout California with indiscriminate raids that have rounded up American citizens, people legally in the United States, working parents, and even children.
“America should never be a country where masked ‘secret police’ grab people off the streets and throw them into unmarked vans and speed away. It is unacceptable that government agents, guns in hand, have seized our neighbors while wearing masks under the pretense of protecting themselves when they are, in fact, hiding from public accountability and sowing fear to intimidate the American people.
“For the safety of both the public and law enforcement, Californians must know they are interacting with legitimate law enforcement officers, rather than masked vigilantes.”
Attorney General Pam Bondi said in November in response to the measure: “Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties. California’s anti-law enforcement policies discriminate against the federal government and are designed to create risk for our agents. These laws cannot stand.”
California
Trump admin making good on promise to send more water to California farms
The Trump administration is making good on a promise to send more water to California farmers in the state’s crop-rich Central Valley.
The US Bureau of Reclamation on Thursday announced a new plan for operating the Central Valley Project, a vast system of pumps, dams and canals that direct water southward from the state’s wetter north.
It follows an executive order President Donald Trump signed in January calling for more water to flow to farmers, arguing the state was wasting the precious resource in the name of protecting endangered fish species.
Secretary of the Interior Doug Burgum said the plan will help the federal government “strengthen California’s water resilience.”
It takes effect Friday.
But California officials and environmental groups blasted the move, saying sending significantly more water to farmlands could threaten water delivery to the rest of the state and would harm salmon and other fish.
Most of the state’s water is in the north, but most of its people are in the south.
The federally-managed Central Valley Project works in tandem with the state-managed State Water Project, which sends water to cities that supply 27 million Californians.
The systems transport water through the Sacramento-San Joaquin River Delta, an estuary that provides critical habitat to fish and wildlife including salmon and the delta smelt.
It is important for the two systems to work together, Karla Nemeth, director of the California Department of Water Resources, said in a statement.
She warned the Trump administration’s plan could limit the state’s ability to send water to cities and farmers.
That is because the state could be required to devote more water to species protection if the federal project sends more to farms.
Barbara Barrigan-Parrilla, executive director at Restore the Delta, said pumping more water out would result in more Delta smelt and juvenile salmon dying from getting stuck in the pumping system, and once the temperature warms, harmful algae blooms will develop that are dangerous to fish, wildlife, pets and people.
That could have economic impacts, she said.
“When you destroy water quality and divorce it from land, you are also destroying property values,” she said. “Nobody wants to live near a fetid, polluted backwater swamp.”
The Bureau of Reclamation denied the changes would harm the environment or endangered species.
The Central Valley Project primarily sends water to farms, with a much smaller amount going to cities and industrial use. Water from the Central Valley Project irrigates roughly one-third of all California agriculture, according to the Bureau of Reclamation.
The Westlands Water District, one of the largest uses of Central Valley Project water, cheered the decision.
It “will help ensure that our growers have the water they need to support local communities and the nation’s food supply, while also protecting California’s wildlife,” Allison Febbo, general manager, said in a statement.
During Trump’s first term, he allowed more water to be directed to the Central Valley, a move Democratic Gov. Gavin Newsom fought in court, saying it would push endangered delta smelt, chinook salmon and steelhead trout populations to extinction.
The Biden administration changed course, adopting its own water plan in 2024 that environmental groups said was a modest improvement. Newsom didn’t immediately comment Thursday on the new decision.
The Republican president renewed his criticism of the state’s water policies after the Los Angeles-area fires broke out in January and some fire hydrants ran dry.
The Central Valley Project does not supply water to Los Angeles.
Trump dubbed his January executive order “Putting People over Fish: Stopping Radical Environmentalism to Provide Water to Southern California.”
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