California Underground: Your Sane Insight into California Politics

California Underground

Welcome to California Underground, the most trusted podcast for all things California politics. Each week, we tackle the pressing issues facing our state through engaging interviews and roundtable discussions with political candidates and passionate Californians. Join us for clear, rational commentary that helps you stay informed about the complexities of California governance. Tune in for your trusted perspective on the political landscape!

  1. Sep 3

    Props 3 and 43: The Pension Math and the Author Voting No

    In 2012, California voters approved Proposition 30 — officially titled "Temporary Taxes to Fund Education." The new tax brackets were written to expire in 2018. Voters extended them in 2016. This November, Proposition 3 asks whether to remove the expiration entirely. Phil and Camille go through what those fourteen years actually produced. Funding did rise: per-student spending increased 14% after inflation, and California climbed from the high 20s to 16th nationally. But two years after Prop 30 passed, the Legislature enacted AB 1469, a CalSTRS rescue plan that pushed school districts' pension contributions sharply upward. By 2025-26 the total contribution rate reached 37.7% of covered payroll — close to 38 cents on every dollar of teacher pay. The Public Policy Institute of California found that rising pension costs absorbed roughly a quarter of the entire pre-pandemic education spending increase. Then there's the revenue that never materialized. A study published in the American Economic Journal: Economic Policy, built on confidential California Franchise Tax Board records, found that 45% of the expected windfall from the 2012 tax eroded within a year and 61% within two. The surprising part is why: migration explained less than 10% of it. High earners largely stayed in California and reported less income. A separate Stanford team using the same dataset found migration effects near zero, which means the two studies broadly agree on the tax-flight question and disagree about something else entirely. The episode also covers Proposition 43, the measure whose author is publicly urging a no vote. Assemblymember Buffy Wicks wrote ACA 22, watched it pass 68-2 and 35-1, and has said she doesn't support the policy — it was the compromise that cleared two broader anti-tax measures off the ballot before the June deadline. Understanding it requires going back to a 2017 California Supreme Court ruling about a marijuana dispensary in Upland, and forward to Los Angeles Measure ULA, the mansion tax that has raised about a third of its projection while UCLA and RAND researchers found it reduced housing production by at least 1,910 units per year. Closing out: the second phase of Orange County's forensic audit into pandemic-era contracts, including the county health director who reprimanded a subordinate for raising conflict-of-interest concerns about Andrew Do, on the reasoning that Do was a lawyer and would know if there was a conflict. Primary sources throughout — LAO analyses, the peer-reviewed studies, the court opinion, and the audit itself. Written breakdowns with the documents attached: caunderground.substack.com Phil's book on California's political economy: www.thegildedstate.com Instagram and TikTok: @californiaundergroundX: @ca_underground

    Props 3 and 43: The Pension Math and the Author Voting No
  2. Aug 26

    Your Tax Dollars Fund Radical Nonprofits

    A California Assemblyman named his own nonprofit "Nonprofit of the Year" — three weeks before it received a $6 million line item in the state budget he helped pass. In this episode, we pull that exact page of the budget and show what else is on it: a group tied to last year's Los Angeles riots that helped write the law shielding organizations like itself from public scrutiny, and a grant program with a documented history of funding one of the country's most controversial advocacy organizations. We also break down why a UC Berkeley economist says "tax the rich" won't fix California's affordability crisis on its own, and what a new poll reveals about California Democrats' complicated relationship with their own party's brand. Sources and further reading:California Globe: https://californiaglobe.com/fl/report-california-assemblyman-steers-6-million-to-his-own-nonprofit/Assembly Budget Committee Floor Report (2026-27): https://abgt.assembly.ca.gov/system/files/2026-06/floor-report-of-the-2026-27-budget-june-11-2026.pdfBerkeley News: https://news.berkeley.edu/2026/08/19/california-has-an-affordability-crisis-the-fix-may-be-politically-uncomfortable/UC Berkeley BESI, "California's Unaffordability Problem": https://besi.berkeley.edu/publication/californias-unaffordability-problem/Common Dreams: https://www.commondreams.org/news/california-progressives-vs-mainstream-democrats More California accountability journalism at The Gilded State: www.thegildedstate.com

    Your Tax Dollars Fund Radical Nonprofits
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About

Welcome to California Underground, the most trusted podcast for all things California politics. Each week, we tackle the pressing issues facing our state through engaging interviews and roundtable discussions with political candidates and passionate Californians. Join us for clear, rational commentary that helps you stay informed about the complexities of California governance. Tune in for your trusted perspective on the political landscape!