CA Governor Candidate Steve Hilton on Why California is Destroying Itself & How a Republican Can Win

Candidate Profile and Background

• Steve Hilton is a Republican candidate for Governor of California and a naturalized U.S. citizen who renounced his UK citizenship to run "All In."
• Born to Hungarian refugee parents in Brighton, England, Hilton grew up with a strong appreciation for freedom and opportunity after his stepfather fled the 1956 Soviet invasion of Hungary.
• He previously served as a Senior Advisor to British Prime Minister David Cameron (2010–2012) and held roles at Google, Facebook, and the Conservative Party before moving to Silicon Valley in 2012.

Economic and Tax Policy

• Hilton proposes a tax reform eliminating state income tax for households earning under $100,000 and implementing a 7.5% flat tax for all income above that threshold.
• The plan targets approximately 7 million households (over one-third of California's population) for tax relief, arguing the $100,000 threshold aligns with local definitions of "low income."
• Funding the tax cut relies on reducing the state budget by approximately $60 billion, returning spending levels to roughly 2019/2020 figures from the current nearly doubled baseline.
• Hilton estimates $425 billion has been wasted, fraudulently spent, or inefficiently allocated over the last five years, averaging $80 billion annually.
• Specific fraud reports released by his "California Department of Government Efficiency" (Cal DOGE) allege:
  • $1 billion diverted from the Climate Change Mitigation Fund between 2015–2025, with only $72 million spent on solar panels while $928 million went to non-profits for voter registration and advocacy.
  • $350 million from Cannabis Tax (Prop 64) intended for substance abuse prevention was distributed to over 500 non-profits primarily for voter activism.
  • $3.8 billion in "Project Homekey" funds largely benefited developers without delivering actual homelessness solutions.

Housing and Construction

• Hilton identifies union power, litigation (specifically CEQA), and "climate dogma" as the three structural forces driving California's unaffordable housing crisis.
• He asserts construction costs in California are double or triple those in neighboring states due to onerous building codes, including mandates for EV charging, solar panels, and reinforced parking structures.
• Hilton claims 70% of CEQA lawsuits are used to block housing projects and serve as leverage to enforce "project labor agreements" requiring union closed-shops and prevailing wages.
• Impact fees in California reportedly reach 30% of construction costs, compared to under 1% in Texas, with a specific fee of $30,000 per door in California versus under $1,000 in Texas.
• He notes that despite stricter environmental regulations, California still has the worst air quality in the country, while Texas maintains comparable or better air quality with fewer housing restrictions.

Energy Policy

• California imports nearly 80% of its oil, with Iraq identified as the number one source, due to the shutdown of 33 of its 40 oil refineries and a ban on new drilling permits by state agencies.
• Hilton attributes high gas prices ($7–$8/gallon) primarily to regulatory costs (CARB standards, taxes) rather than just taxes, noting a $2 premium over national averages is driven by inefficiency.
• He proposes using executive authority to immediately reverse the shutdown of oil production and approve side-tracking permits to double state oil production within two years.

Education

• California spends nearly $27,000 per student annually (one of the highest in the nation) yet suffers from the worst student outcomes, with only 35% meeting math standards and 40% meeting English standards.
• Hilton criticizes teacher unions for shifting focus from student outcomes to political activism and ideological goals.
• His proposed reforms include mandating phonics instruction, enforcing mandatory retention for students who do not read by the end of third grade, and grading individual teachers and schools based on publicly available test data.

Crime and Justice

• Hilton argues that California's crime rate is 30% higher than the national average due to a "catch and release" culture and overcrowded county jails resulting from state prison closures.
• State prison population has dropped from 165,000 in 2006 to 93,000, yet the correctional budget has doubled, undermining judicial accountability.
• He commits to immediately reversing prison closure programs, increasing capacity to relieve county jail pressure, and improving rehabilitation to reduce the nation's highest recidivism rates.
• Regarding Prop 47 (petty theft threshold), Hilton notes it was overturned by Prop 36 (70% approval) but remains poorly enforced by Democratic officials.

Homelessness

• Hilton proposes using state law enforcement resources to enforce existing laws and remove homeless encampments following the Grants Pass v. Oregon Supreme Court ruling, which overturned the Boise ruling that previously prevented removals without shelter.
• He mandates a requirement for sobriety (no drug/alcohol use) to access state-funded shelter services.
• He plans to challenge the federal "IMD Rule" (which prohibits Medicaid reimbursement for facilities with more than 16 beds) to establish large-scale mental health treatment facilities, arguing current spending on high-cost permanent housing is inefficient.
• Over 80% of the homeless population is identified by Hilton as suffering from drug addiction or severe mental health issues.

Political Strategy and Election Outlook

• Hilton is currently leading all polls in the crowded field and is favored to advance to the general election under California's "Top Two" primary system.
• He contrasts his "change" platform with potential Democratic opponents (Tom Steyer, Katie Porter, Javier Becerra), characterizing them as advocating for "more of the same" or further leftward policies.
• Hilton cites a 6.1 million vote total for Donald Trump in California (despite no campaign activity) to argue a strong Republican base exists to win a midterm election.
• He identifies the upcoming November 2026 voter ID measure as a catalyst for increasing Republican turnout and forming a multi-racial working-class coalition.
• The campaign narrative focuses on immediate affordability solutions: $3 gas, halved electric bills, and a $0 tax threshold for the first $100,000 of income.