California’s Spending Problem Spirals Out of Control
California boasts the 5th largest economy in the world, yet somehow can’t manage its own checkbook. Despite record-high taxes, billions in federal and state funding, and expansive social programs, the state government has repeatedly failed to deliver measurable results — or even basic financial transparency.
Voters and taxpayers are rightly asking: Where has all the money gone?
Billions Spent, Virtually No Accountability
Let’s take a look at California’s spending “track record”:
$24 billion spent on homelessness between 2018 and 2023 — yet audits show the state cannot track how the money was used; meanwhile homelessness is at record highs.
$33+ billion approved for high-speed rail, yet only 22 miles of track laid over 17 years — with no train running, no major city connected, and costs now projected to exceed $100 billion.
$8.5 billion per year spent to provide full Medi-Cal coverage to undocumented immigrants — a policy that exceeded cost estimates by nearly $3 billion in just its first year.
Despite these staggering investments, California faces a $45 billion budget deficit. And still, its leadership demands more federal dollars, pushing the boundaries of legal accounting through Medicaid financing tactics that inflate costs and maximize federal reimbursements — a maneuver many watchdogs call “federal money laundering.”
“Technically Legal” Is Not Good Enough
California’s leaders are quick to assure us that these practices are “technically legal.” But legality isn’t the same as integrity. Hiding behind loopholes while squandering billions in taxpayer money is a violation of fiduciary duty, plain and simple.
From provider tax schemes in Medi-Cal to the shell game of homelessness grants, California’s bureaucracy has perfected the art of spending without accountability. This isn’t just bad governance — it’s systemic dysfunction.
Highest Taxes, Worst Management
California ranks #1 in state income tax.
#1 in sales tax.
#1 in gas tax.
Yet despite this, our roads are crumbling, housing is unaffordable, and crime and homelessness are rising in major cities.
How does a state that collects so much deliver so little?
A Lemonade Stand Could Do Better
The truth is painful: a kid with a lemonade stand is more transparent, efficient, and accountable than the California state government.
At least that kid:
Tracks revenue and expenses.
Delivers a product that people want.
Knows if they’re making or losing money.
Doesn’t spend $30 to build a $1 cup.
California’s government, by contrast, spends billions on programs it can’t measure, projects it doesn’t complete, and services that serve fewer and fewer Californians effectively.
Billions Lost, but Outrage for a Free Plane
While Democrats raise alarms about a $400 million plane donated to the U.S. government by Qatar — costing taxpayers nothing — Gavin Newsom, a governor with presidential ambitions, can’t account for tens of billions in actual taxpayer dollars already spent.
One international gift sparks outrage.
But massive waste at home?
That gets a pass.
At this point, a kid with a lemonade stand might be a better fiscal steward than California’s current leadership. Newsom’s gross mismanagement isn’t just embarrassing — it’s dangerous to the future of the state.
Time for Real Accountability
This is not a partisan issue — it’s a citizenship issue. Every taxpayer, regardless of party, deserves a government that:
Tracks where every dollar goes.
Measures outcomes honestly.
Stops hiding behind bureaucracy and “technical” compliance.
California doesn’t have a money problem. It has a management problem — and that starts at the top.
Enough excuses. Enough waste. It’s time to demand the same competence and honesty from our government that we expect from a child running a sidewalk lemonade stand.
Take a look at COLAB’s latest video, “The Great Fee Heist”
Thank you Brian for reminding us why the American Psychological Association should now list “Liberalism” as a mental illness. If the massive mismanagement of public funds that you skillfully point out isn’t fraud, money laundering, corruption and criminality…what is it? Simply incompetence, the likes of which has never been seen before in human history?
Kudos to the US Senate for putting the kibosh on the California EV mandate. Of course, AG Bonta promptly filed a lawsuit against the Trump Administration and indicated that 23 other lawsuits filed on behalf of Californians and that Trump was a “repeat offender.” Seriously, is Rob Bonta really this stupid? Filing frivolous lawsuits while California is going broke?
All this going on while the Dem brainiacs in Sacramento got the idea of shutting down 2 refineries which are predicted to send gas prices soaring to between $8-9/gal. I just returned from Kansas City where gas prices were, wait for it….$2.99/gal!
Folks, we’re circling the bowl in this State and the Democrats need to be sent packing and/or prosecuted!
In the rouge gallery of state fiscal mismanagement, one can never leave out the majority of tax dollar outlays made to our state public education system which also fails all fiscal and mission accountability.
Shortly after property tax protection Prop 13 was passed, California voters additionally passed passed Prop 98, to demonstrate their continued support and priority for California public education. Since its passage, Prop 98 now automatically dedicates, with no strings attached, 50% of all general funds every year to be allocated to state public education: 90% to K-12 and 10% to community colleges.
In return we now have a #45 ranked K- 12 system nationwide. Plus additional demands were just placed on local property taxpayers to fund a $100 million dollar plus new gymnasium at SBCC, since SBCC has refused to balance their operating budgets for years too.
The most glaring and unintended outcome for this automatic Prop 98 funding for public education was the immense growth and power of California Teachers Association union, who along with SEIU/CSEA, became the primary political brokers in this state since they have so much "free" money now automatically at their disposal. Governor Jerry Brown admitted they are now the unelected fourth branch of our state government, and neither Brown nor Newsom make a move without getting the teachers union's pre-approval.
Can voters cancel Prop 98 due to its primary mission failures today? We must look into this for real fiscal reform in this state. How long should we be forced to fund abject failure. Even always lower ranked Mississippi is now running circles around California K-12 with their "education miracle" student success numbers today.
This should shock the conscience of every voter and tax payer in this entire state. Yet it continues to fly under the radar ,with no small cover-up help by that very same California Teachers association union and their handmaiden SEIU.