promises

SACRAMENTO —  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:

“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.

What else you should be reading

The must-read: How MAGA Sheriff Chad Bianco is shaking up the 2026 California gubernatorial primary
The other must-read: Tom Steyer tries to sell voters on his own personal change
The L.A. Times Special: Abortion access just took another blow. California wasn’t spared

Until next week,
George Skelton

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A TOP travel company has launched a new guarantee for customers that allows them to get a refund the same day their flight is cancelled.

On The Beach has launched a new initiative for travellers this summer, where, if their flight is cancelled, they will get a refund on the same day.

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The holiday package provider is the first to offer ‘Cancelled Flight Cover’, and it is included on all On The Beach packages.

The perk will come into play if your flight is either cancelled or rescheduled by 12 hours or more, with On The Beach first trying to find you the “next best flight”.

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It comes as airlines and travellers face uncertainty this summer, with possible cancellations across Europe due to fuel supply concerns.

Some airlines are already cutting flights but other providers usually take up to 14 days to refund customers.

Caspar Nelson, holiday expert at On the Beach, said: “Holidaymakers deserve certainty, especially when disruption strikes.

“We’re proud to be the first package holiday provider to commit to same-day refund processing for cancelled flights, giving customers the confidence to book knowing we’ve got their back when it matters most.

“If the worst happens and a flight is cancelled, we’ll move quickly to either find a new route or return every penny of their holiday money that same day.

“This means they can get a new break booked, make alternative plans fast, and get back to looking forward to their summer instead of worrying about it.”

Canadian Prime Minister Mark Carney took office last year amid a flurry of aggressive actions by his country’s southern neighbour. A recently sworn-in United States president, Donald Trump, slapped tariffs on Canadian exports and threatened to make the US neighbour the 51st state.

The actions were particularly damning as Canada had deep trade and security ties with the US, not only sending nearly 80 percent of its exports to that market, but also often following lockstep on geopolitical policy and strategic moves.

All that was thrown aside when Trump took office, and Canada, under former Prime Minister Justin Trudeau, was one of the first countries he slapped with tariffs.

After a year of dealing with a mercurial and unpredictable US president, experts applaud Carney as “standing strong and resolute”, not just in the face of Trump’s threats, but also against internal critics.

“The most notable aspect of the last year was both a bullet dodged and a savvy bit of statecraft to avoid a rush to do a deal on trade and invest with the US the way many other countries did,” said Brett House, a senior fellow at the University of Toronto’s Munk School of Global Affairs & Public Policy.

“Commitments from this president are absolutely worthless, and the biggest accomplishment of the first year has been standing strong and resolute in the face of internal critics,” House told Al Jazeera.

Indeed, Carney has used Trump’s attacks on allies and others to refocus Canada’s foreign policy and place in the world.

With the US no longer the anchor of a rules-based order, and with there now being a “deep rupture” caused by changes in Washington, “Carney has aimed to build at home and diversify abroad, as Ottawa’s dependence and long ties have now become a source of weakness,” said Vina Nadjibulla, the vice president of the Asia Pacific Foundation of Canada.

“And he’s doing this at a speed, scale and ambition that we haven’t seen in recent years” in Ottawa, Nadjibulla said.

‘Rupture’ in global order

Some of that stance was evident in January, when Carney, in a speech in Davos, said there was a “rupture” in the global rules-based order and that Middle Powers like Canada and others had to rise strategically to address geopolitical tensions.

But it was visible in his actions even before Davos, when he had reached out to countries that had historically been important trade partners but where relations had been frozen due to political tensions under his predecessor, Trudeau.

For instance, Carney invited Indian Prime Minister Narendra Modi to the G7 meeting in Canada to initiate a reset of ties with New Delhi that had been in a deep freeze since Trudeau alleged in 2023 that India was involved in the killing of a Sikh separatist activist on Canadian soil.

Carney also recalibrated Canada’s relations with China, which had been tense since Canadian authorities arrested a key official of Chinese telecommunications firm Huawei as she was transitioning through the Vancouver international airport in December 2018. China retaliated against the arrest of Meng Wanzhou, which was carried out at the request of US authorities, by detaining two Canadians.

Carney has also deepened relations with Japan, South Korea, Australia, and others, making sure to align on security and economic issues, and has drawn Canada closer to Europe, Nadjibulla pointed out.

Domestic push

In the lead-up to elections last year, Carney “positioned himself as a centrist, a moderate, and went to great lengths to distance himself from the image of Justin Trudeau,” said Sanjay Jeram, the chair of the political science department at Simon Fraser University in Burnaby, Canada.

“He hasn’t shown much interest in discussing things outside the economy, international relations and trade, and even when asked, has avoided those questions and steered the conversation back to what he believes is his true purpose. Or that could be his political strategy, or a bit of both.”

Under that pragmatist persona, “Carney takes the world and the economy as it is, rather than what we hope it to be”, which allows him to be judged on pragmatist metrics, Jeram said, referring to criticisms that Carney is overlooking concerns related to political interference or human rights in his dealings with foreign partners.

“Canadians have bought that [stance] so far,” Jeram added.

Indeed, Carney’s approval ratings are up. According to a March Ipsos poll for Global News, 58 percent of Canadians approve of him, up 10 percent from a year before, while 33 percent do not.

While there has also been significant movement on paper to remove federal barriers to facilitate business and trade within the country, there have also been concerns about certain policy pushes. A major projects bill, for instance, is meant to fast-track big infrastructure projects, but critics are concerned that it undermines the importance of consultation, especially with the Indigenous communities whose land these projects could go through.

“Carney recognises we need more of infrastructure to be able to diversify trade,” the Asia Pacific Foundation’s Nadjibulla said.

As he settles into his second year, Carney’s main challenge will be to see if he can deliver on his first-year announcements.

One of his biggest challenges this year will be a successful conclusion of the review of the trade pact between the US, Canada and Mexico, known as the USMCA, which starts on July 1 and which has helped shield Canadian exports from US tariffs.

The “US has signalled that a successful review could hinge on Canada lining its external tariffs in line with US tariffs, but that’s at cross purposes with Canada’s efforts”, said the University of Toronto’s House, especially as Canada has lined up deals with China on electric cars and agriculture.

Nadjibulla added that “2026 will be harder, because it will be about implementation and delivery, especially against the US-Canada dynamics.”