California government spending up 75%—no better outcomes

In an All-In Podcast, San José Mayor Matt Mahan argues that California government spending has risen 75% without improved public outcomes. He says many indicators are flat or down, pointing to fiscal impact from weak oversight and accountability. Mahan blames bureaucratic inefficiencies for project paralysis, higher costs, and delays, arguing that California’s extensive environmental reviews and litigation raise development expenses. He also cites pandemic-era unemployment fraud totaling over $30 billion in fraudulent claims, describing it as a systemic waste and inefficiency problem. By contrast, Mahan says San José reduced crime and unsheltered homelessness without raising taxes by changing processes, reallocating funding, reducing fees, and cutting programs that weren’t delivering. He criticizes California’s legislative approach as performative politics—adding more process and cost via bills while not improving outcomes. He also argues that focusing only on revenue is a “misguided” solution and says effective governance should set public goals so the public can hold officials accountable for spending dollars that achieve results. Keywords: California government spending, fiscal impact, bureaucratic inefficiencies, environmental reviews, unemployment fraud, public accountability, governance outcomes.