Matt Mahan: California’s spending has risen 75% with no improved outcomes, bureaucratic inefficiencies are paralyzing governance, and San Jose’s tax-free strategies are reducing crime and homelessness | All-In Podcast

San José's innovative approach reduces crime and homelessness without raising taxes, challenging California's spending inefficiencies.

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Add us on Google by Editorial Team Mar. 23, 2026

Key takeaways

• California’s government spending has increased significantly, but outcomes have not improved.
• Bureaucratic inefficiencies in California lead to project delays and increased costs.
• Extensive environmental reviews contribute to high project costs in California.
• Fraud during the pandemic resulted in over $30 billion in fraudulent unemployment claims in California.
• Waste and inefficiency are prevalent due to a focus on growing programs rather than achieving outcomes.
• San Jose reduced crime and homelessness by changing processes and reallocating funding without raising taxes.
• California’s legislature focuses on passing more bills, increasing costs without improving outcomes.
• Less government intervention may be more effective in solving housing and education issues.
• Focusing solely on revenue is a misguided approach to solving California’s problems.
• Setting public goals allows for accountability in government spending and outcomes.
• California’s political climate emphasizes performative politics over effective governance.
• The disconnect between legislative actions and public welfare is a critical issue in California.
• Government policies can inadvertently make housing more expensive.
• Accountability and goal-setting are crucial for effective governance.
• Public accountability mechanisms can improve government effectiveness.

Guest intro

Matt Mahan is the 66th Mayor of San José, California’s third-largest city. He previously co-founded Brigade, the world’s first voter network, which reached millions of users before its acquisition in 2019 by Pinterest and Countable. As mayor, he has dramatically reduced street homelessness, made San José the safest big city in America, and prioritized pragmatic solutions on housing, public safety, and affordability.

California’s government spending and outcomes

• We have increased spending in state government by 75%… and as far as I can tell none of the outcomes have gotten better… many of them are flat or down over the same time period.

  — Matt Mahan

• Increased spending has not translated into improved public services or outcomes.
• The disconnect between spending and outcomes highlights issues in government accountability.
• Understanding fiscal policies is crucial to addressing inefficiencies in California’s governance.
• There is a need for better oversight and evaluation of government programs.
• The focus should shift from spending to achieving tangible results.

• Despite increasing spending in the state by 75% none of those outcomes have actually gotten better.

  — Matt Mahan

• Evaluating the effectiveness of spending is essential for improving governance.

Bureaucratic inefficiencies in California

• We’ve bureaucratized the state to the point where it’s total paralysis we can keep spending more and more and not getting anything for it.

  — Matt Mahan

• Bureaucratic processes contribute to project delays and inefficiencies.
• Inefficiencies lead to increased costs without corresponding benefits.
• Streamlining processes could improve project execution and reduce costs.
• Understanding specific bureaucratic regulations is crucial for reform.

• There is a lot of performative politics… despite increasing spending in the state by 75% none of those outcomes have actually gotten better.

  — Matt Mahan

• The focus should be on simplifying processes to enhance efficiency.
• Reforming bureaucratic processes can lead to better outcomes and cost savings.

Environmental reviews and project costs

• You have years of consultants doing environmental reviews and and doing all of these studies and reports of of the impacts it might have.

  — Matt Mahan

• Extensive environmental reviews contribute to high project costs.
• The role of consultants in project development adds to financial inefficiencies.
• Understanding environmental regulations is key to addressing cost issues.
• Streamlining review processes could reduce costs and expedite projects.
• Balancing environmental concerns with project efficiency is crucial.
• Reforming environmental review processes can lead to cost savings.

• The high costs associated with California projects stem from extensive environmental reviews and litigation.

  — Matt Mahan

Fraud and inefficiency during the pandemic

• Let’s be clear there is fraud there has been fraud very well documented in california and other areas during the last five years or so roughly during the pandemic unemployment claims in california that were fraudulent totaled over $30,000,000,000 that is well documented.

  — Matt Mahan

• Fraud during the pandemic highlights vulnerabilities in the unemployment system.
• Addressing fraud is crucial for improving public administration.
• Understanding the scale of fraud is essential for implementing reforms.
• Strengthening oversight mechanisms can reduce fraud and inefficiency.

• California’s system is plagued by waste and inefficiency due to a focus on growing programs rather than achieving outcomes.

  — Matt Mahan

• Focusing on outcomes rather than program growth can improve efficiency.
• Fraud and inefficiency are systemic issues that require comprehensive solutions.

San Jose’s successful governance strategies

• Without raising taxes we have dramatically changed the outcomes we’re getting we have led the state of reducing crime and become the safest big city in the country we’ve reduced unsheltered homelessness…we had to change existing process that was in the way reduce fees and cut funding for programs that weren’t delivering.

  — Matt Mahan

• San Jose’s approach to governance emphasizes process changes and funding reallocation.
• Successful governance does not necessarily require increased taxes.
• Effective strategies can lead to improved outcomes in urban management.
• San Jose’s model challenges conventional funding approaches.

• We have led the state of reducing crime and become the safest big city in the country.

  — Matt Mahan

• Other cities can learn from San Jose’s governance model.
• Emphasizing efficiency and effectiveness can lead to better public services.

Legislative focus and accountability in California

• What you see is you actually read what these bills do they generally just add more cost and more process… there is a lot of performative politics.

  — Matt Mahan

• The focus on passing more bills increases costs without improving outcomes.
• Legislative actions often prioritize process over effectiveness.
• Understanding the political climate is crucial for addressing governance issues.

• Less government solves the problem better than more government… trying to do more to create housing may make housing more expensive.

  — Matt Mahan

• Reducing government intervention could lead to more effective solutions.
• Accountability and goal-setting are essential for legislative effectiveness.
• The disconnect between legislative actions and public welfare needs addressing.

Revenue focus and governance challenges

• I just don’t believe that and I say that as the only current executive in this race… our reflexive answer has been we need more revenue if we just have more money we’ll solve this problem.

  — Matt Mahan

• Focusing solely on revenue is a misguided approach to solving problems.
• Accountability and goal-setting are crucial for effective governance.
• Understanding fiscal challenges is essential for addressing governance issues.

• Setting public goals allows for accountability in government spending and outcomes.

  — Matt Mahan

• Public accountability mechanisms can improve government effectiveness.
• Emphasizing outcomes over revenue can lead to better governance.
• The political mindset needs to shift from revenue generation to accountability.

Public accountability and governance effectiveness

• It all starts with being willing to set a goal publicly and allow the public to hold you accountable for spending dollars in a way that actually achieves outcomes.

  — Matt Mahan

• Setting public goals enhances accountability in government spending.
• Public accountability mechanisms can improve decision-making and effectiveness.
• Understanding accountability mechanisms is crucial for improving governance.
• Emphasizing goal-setting can lead to better public services and outcomes.

• Public accountability mechanisms can improve government effectiveness.

  — Matt Mahan

• Holding officials accountable for their actions is essential for effective governance.
• Accountability and transparency are key to improving public administration.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.