By Sam Barron | Thursday, 01 January 2026 08:33 PM EST
Steve Hilton, a candidate for the Republican nomination for California governor, declared that the state is “lighting money on fire.” A recent state auditor’s report revealed potential fraudulent spending of up to $76.5 billion in the state. The audit warned that ongoing failures in benefit programs, financial reporting, cybersecurity, and water infrastructure could lead to billions in additional costs and public safety risks.
State Auditor Grant Parks noted in the latest “high-risk” assessment that longstanding issues under Governor Gavin Newsom’s administration have not been resolved and, in some cases, have deteriorated further. “That was just from eight or nine areas of spending,” Hilton stated. “It didn’t include the $13 billion they’ll be spending next year on free healthcare for illegal immigrants that Democrats nationally denied was even possible.” Hilton added, “It doesn’t include another $55 billion that they lost over the course of the pandemic.”
Hilton further asserted that California has the highest unemployment rate and poverty rate in the country under Newsom’s leadership due to what he called “insane policies.” “That’s why we got to kick these people out,” Hilton said. “We’ve had 16 years of one-party rule. It’s a total disaster.”
Next week marks the first anniversary of the Palisades Fire, and Hilton claimed Governor Newsom and Los Angeles Mayor Karen Bass are covering up its causes. “Nothing’s been done to address the failings that led to this in the first place,” Hilton said. “The Palisades Fire was totally avoidable because it was a rekindling of a fire that had been there a week earlier, and they could and should have put it out but didn’t.”
“And instead of dealing with any of this, Karen Bass and Gavin Newsom and all the rest of them are just covering it up,” Hilton added.
