EconDev Conversations with the Candidates

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Steve Hilton (R)

Sacramento, CA — The California Association for Local Economic Development (CALED) board of directors recently interviewed Steve Hilton regarding his positions and proposals on the economic issues facing the state. Hilton is an entrepreneur, small business owner, media personality, and author. Born in London to Hungarian immigrants, he is running as a Republican to become California’s next governor.

This virtual meeting is part of CALED’s bipartisan outreach to all major party candidates, providing a platform for leadership to hear diverse perspectives on economic development issues impacting local communities. Hilton is the fourth candidate to participate, with additional meetings anticipated over the coming months.

Hilton’s discussion emphasized California’s innovative spirit, the importance of workforce education, and his firm belief in decentralizing power. He advocated for government investment in both physical and human infrastructure — from roads and transportation to vocational training — to support a skilled workforce and thriving communities.

“I see my main role as governor in terms of helping business and economic development to take an absolute sledgehammer to this bloated monstrosity of state government, frankly, in order to allow businesses to just do what they need to do to create jobs, wealth, and opportunity in California,” said Hilton.

Hilton, who grew up in a working-class household in England, shared stories of working on construction sites in his youth before attending Oxford University. After working in politics as a policy researcher for Margaret Thatcher and later as a senior advisor to Prime Minister David Cameron, he emigrated to California and began teaching at Stanford University and consulting businesses on corporate responsibility.

“Good business is a social contribution; the act of starting and running a business, employing people, and making a product or service is a contribution to society and a value we must appreciate,” said Hilton.

He characterized California’s current economy as “lopsided,” noting that while tech giants in the Bay Area thrive and contribute to our large GDP, they do not employ enough people to sustain the broader population of the entire state.

“Work is going to other states, and the foundational problem is that we have a government and bureaucracy that is way too big and bloated, where it is impossible for smaller businesses to operate.”

While Hilton acknowledged that many of California’s multitude of regulations were likely well-intentioned, he believes the state’s main role should be to remove barriers to business growth and to develop the infrastructure necessary for businesses to build upon. To ensure these investments yield results, Hilton stressed that all policy claims must be backed by rigorous data.

He applied this vision to the specific challenges facing the rural Sierra region, where forest management, wildfires, and overregulation have stifled growth. To address these issues, Hilton outlined plans to revive the timber industry by decreasing the state’s dependence on lumber imports from Oregon and Canada.

“A good example of a rural economy boost is working on the issue of managing forests, reviving the lumber industry, biomass energy generation, and air quality regulations that are overprescripted that mitigate against common-sense approaches. A proactive approach could generate huge amounts of jobs, wealth, and opportunities in rural counties.”

Hilton proposed shifting the state’s “headspace” to ensure California does more than just design products that are ultimately built elsewhere. He argued that centralized state planning removes decision-making from local experts.

To revitalize manufacturing, Hilton suggested a “big and bold” reset to lower costs and change the mindset of investors.

“We are seeing a lot of duplication with regulation and oversight. State agencies have regulations as well as regions and counties, which creates an insane amount of bloat in the system and results in nothing getting done,” Hilton said. “If we start by eliminating the most centralized part, we can devolve power to the lowest possible level, resulting in subsidiarity.”

Regarding the workforce, he expressed concern over current education standards, noting that California trails other states in reading and math. He advocated for a shift toward vocational skills training within the public school system rather than a strictly academic focus.

Hilton concluded by sharing that “economic development is at the heart of the revival we need to make for California. Without jobs, wealth, and opportunity, nothing else is possible,” Hilton said. “My whole attitude is: it’s never about one person, but about the team you put together…together, we have an amazing opportunity to make this beautiful state we love so much, truly golden again.”

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Chad Bianco (R)

Sacramento, CA — The California Association for Local Economic Development (CALED) board of directors interviewed Honorable Sheriff Chad Bianco about his positions and proposals on a range of economic issues facing the state. Bianco was elected Riverside County Sheriff in 2018 and was re-elected in 2022. He is running as a Republican to become California’s next governor.

This meeting resulted from CALED’s outreach to all major party candidates to meet with its leadership and discuss their positions on economic development issues faced by local communities. Bianco is the third candidate to participate, and meetings with others are anticipated over the next few months.

The sheriff described California’s businesses as “the lifeblood of any community,” and emphasized his plan to reduce regulations, support workforce development programs and give more control to local governments.

“We are by far the most business-regulated state in the country,” said Bianco. “Control has to be given back to cities and counties. All of the regulations that are different than those in other states are preventing businesses from coming here, or are driving businesses to other states.”

Bianco, who has spent 32 years in public safety, presented himself as a champion of deregulation and someone who will work quickly to cut red tape at the state level. He spoke of his own difficulties in getting the attention of state lawmakers to help solve issues in his county, and expressed frustration that he and Riverside County needed to hire lobbyists to advocate for their constituents.

“The regulations that have been put in place, the power that’s been taken away from local government and taken to the state, is truly harming Riverside County government’s ability for economic development,” said Bianco.

“The state is not supposed to be running local government, but it has that umbrella of the overall economic tax money that, when it has to help, it can,” added Bianco. That’s how government was designed and how people expect government to operate.”

While on the campaign trail, Bianco said he has spoken to many small business owners who are struggling to find skilled workers. He expressed support for state-matched grants to fund local community investments, workforce development initiatives and to see manufacturers return to California.

“We no longer train welding, electrical skills or building trades in our educational system,” said Bianco.  He advocates for more vocational training programs that treat students as “future employees.”

“It’s not that businesses don’t like California, it’s that they don’t like the policies,” said Bianco. “They don’t like the government. They don’t like the regulations. They don’t like the taxes. If we don’t fix those issues, we are never going to bring more manufacturing into our state. We’ll just drive more out.”

In response to a question about housing, he called the term affordable housing a “misnomer.” Bianco argues that the reason homes are so expensive in California is that state and local laws drive up the cost for builders to build homes in the state, and that cutting restrictions will lower the cost of homes.

On homelessness, Bianco described himself as a “unique” candidate because of his law enforcement leadership experience. “Skid Row…will be gone within four years with me as your governor,” pledged Bianco, who proposed addressing drug addiction and mental illness as root causes and then shifting spending to redevelopment efforts.

Bianco concluded his thoughts on the benefits of local economic development. “Some communities don’t have any development, and they truly should. That’s how we’re successful, that’s how you grow and how you make your local [community] better. It’s what brings in more people to make you the best.”

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Antonio Villaraigosa (D)

Sacramento, CA — The board of directors of the California Association for Local Economic Development (CALED) met with the Honorable Mayor Antonio Villaraigosa last week to discuss his positions and proposals on a range of economic issues facing the state. Villaraigosa, who has held several elected positions including former Speaker of the California State Assembly (1998-2000) and Mayor of Los Angeles (2005-2013), is running as a Democrat to become California’s next governor.

The meeting resulted from CALEDs bipartisan outreach to all major party candidates to provide an opportunity to meet with CALED’s leadership to share their perspectives on economic development issues important to local communities. For the convenience of candidates and local officials, these meetings are held over Zoom. Previously, CALED’s leadership met with former State Controller, the Honorable Betty Yee.

Villaraigosa’s discussion covered California’s business climate, housing, redevelopment tools, and local-state collaboration. He expressed support for a thoughtful approach to housing and economic development, reducing red tape for businesses, and enhancing current economic development tools — like creating a form of redevelopment 2.0.

“The next governor is going to have to trim programs and make a lot of tough choices,” Villaraigosa said. “There’s balance in that we need to grow the economy.” Villaraigosa recognized that local government is where ”the rubber meets the road” on economic development, and requires better collaboration from the state. He pointed out the window behind him at the Los Angeles skyline and exclaimed, “There are no cranes out there!”

Villaraigosa described himself as a problem solver with experience at every level of government. He shared that when he became mayor, he learned that it took two years, and permitting approvals from 12 different departments, to open a restaurant in Los Angeles. In response, he got everyone in a room and helped reduce the process to six months.

Still, he acknowledged that there is always more to learn, and was interested in the variety of local economic strategies and approaches. As governor, he said he would establish a local economic development council in collaboration with CALED and other organizations to streamline processes and prioritize problem-solving over bureaucracy.

CALED members briefed Villaraigosa on some of the state regulatory hurdles with the Surplus Land Act they were facing when disposing of land for economic opportunity. While reiterating the importance of housing, Villaraigosa expressed a willingness to explore how to better reconcile state laws and policy objectives on local economic development and housing.

Villaraigosa praised local government innovation in using post-RDA financing tools, like Enhanced Infrastructure Financing Districts (EIFDs), and said the state must do more to support those efforts. “The next governor has got to focus on economic development and give the cities and counties the tools they need to succeed.”

Villaraigosa also emphasized the need to support rural and urban areas alike. He noted that while his local experience was as mayor of Los Angeles, he recognized that the leaders of small cities and rural counties face similar challenges. “The only difference between me and you,” he stated, “is the size of the stage.”

Discussing statewide issues, Villaraigosa said he would support a range of housing options — from homeless and affordable to workforce and market-rate options — to set up communities for sustainable growth. He also shared that it was critical that communities feel safe. Ensuring public safety is a top priority for him.

In closing, Villaraigosa stressed the importance of expanding economic opportunities. “I know what a good job can do to change a man or a woman’s life. We can’t remain the world’s fourth-largest economy with the highest poverty rate,” he said. “Economic development is the key to getting people out of homelessness and poverty; we must make investments to grow our economy and create good jobs. I am not afraid to advocate for that, and I’m not standing down. The best way for us to grow is to grow together.”

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Betty Yee (D)

Sacramento, CA — The California Association for Local Economic Development (CALED) invited the Honorable Betty Yee to interview with the Board of Directors and discuss her positions and proposals on a range of economic issues facing the state. Yee, the former State Controller and State Budget Director is running as a Democrat to become California’s next governor.

She is the first gubernatorial candidate to accept CALED’s invitation to discuss furthering economic development in California, an opportunity that has been extended to all major Democrat and Republican candidates. Meetings with other candidates are anticipated to occur over the next several months.

The conversation with Yee covered a range of topics related to economic development and the state’s economic future, including California’s business climate, manufacturing, workforce development, the relationship between state and local governments, and redevelopment tools. Yee expressed her support for improving the state-local partnership, streamlining regulations, and bringing back local redevelopment agencies (RDAs) if elected California’s next governor.

“Let’s put the right guardrails on and have that be the focal point of our state/local relationship for what we’re delivering for the public,” said Yee when discussing re-establishing RDA’s, which she acknowledged would have its challenges. In a related discussion, Yee pledged to support the efforts of existing infrastructure financing districts.

Yee, the daughter of immigrant parents who owned a small business in San Francisco, spoke in detail with the board about the challenges of California’s business climate and the need to support businesses both small and large. She acknowledged that as businesses grow, they often consider moving to other states because of California’s lack of affordability and the burden of taxes and regulations.

Among her proposals is a sector-specific pilot program to reduce interagency complexities and provide navigators to support businesses in complying with state requirements.

“I think we all would agree, some regulations are purposed, but there has to be an element of reasonableness for how many we need, and I think it’s time to unravel this on a top-level,” said Yee, in hopes this would spur a return of manufacturing to the state.

Since announcing her candidacy in March 2024, Yee has traveled throughout California, including rural areas, and repeatedly noted to the board that “innovation happens in all corners of the state.” She said, if elected, she would work with local governments and agencies to help grow rural economies through economic development partnerships, workforce initiatives, programs with K-12 and higher education, apprenticeships, and supporting grants.

In this conversation, CALED officials also identified the challenges they face with land acquisition and disposition authorized under one set of laws to support local economic development efforts, that is conflicting with other state laws and regulatory efforts.

“I think the beauty of state/local partnership is the understanding of when the state needs to step in and when the state needs to get out of the way. It’s a healthy collaboration when we’re able to understand what the goal is that we’re trying to achieve, and if there are barriers that are a matter of state policy that we need to change, we can certainly pursue those,” Yee replied.

In response to a question about the challenges of homelessness and affordability, Yee proposed a multi-pronged approach to help get people into housing and connected with resources, while trying to support the organizations that are offering assistance.

She pointed to a program in Alameda County that brings one-room units to encampments to provide temporary shelter to those experiencing homelessness, and pitched an effort to help prevent people from becoming homeless in the first place.

“I think the response to homelessness has been a mess. We spent over $24 billion in state funds on homelessness programs, and I will be the first to say I don’t know what we got for it,” Yee told the board.

Yee also spoke of the need for California to stand out in the broader market. The state became the world’s fourth-largest economy in 2024, and Yee called for the state to work with global partners to grow and support local economies.

“Our secret sauce is the diversity of our regions, the diversity of our talents and the diversity of our industries,” said Yee. “We need to grow our economy. We need to figure out how to sustain a global economy and how we can become much more financially and fiscally resilient from the federal government.”