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Speaker 1: Can't. I am six forty. You're listening to the John

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Speaker 1: Cobel podcast on the iHeartRadio apps.

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Speaker 2: This is Carl Demayo filling in for John Cobot. We

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Speaker 2: are talking about all of the problems that plague us

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Speaker 2: in California, in Southern California in particular, and why why.

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Speaker 3: Are things so bad? But also what can we do

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Speaker 3: about it?

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Speaker 2: So I always say I don't want to just increase

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Speaker 2: your blood pressure by giving you the bad news. I

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Speaker 2: want to give you the truth. You deserve the truth

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Speaker 2: because it's frustrating seeing things get really bad and you're

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Speaker 2: being told, well, if you raise your taxes and you

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Speaker 2: regulate this and give us your freedom on.

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Speaker 3: That, well solve your problems.

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Speaker 2: Because my name is slick politician also known as Gavin Newsom. Yeah,

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Speaker 2: so the slick politicians are saying, oh, they've got it

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Speaker 2: in the bag, don't worry about it, and always always

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Speaker 2: involves more regulation, higher taxes, and less freedom. Funny, funny

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Speaker 2: that single solution, everything can be solved with higher taxes,

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Speaker 2: just give us part your money and everything will be perfect.

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Speaker 2: Well that's not been working out, And so we expose

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Speaker 2: why things are so bad.

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Speaker 3: But then we tell you what you can do about it.

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Speaker 2: Again, The first and most important thing we can do

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Speaker 2: is we have to fix our broken political system, and

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Speaker 2: that requires California voter ID. We need a million signatures.

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Speaker 2: Go on the website voter idpetition dot org voter idpetition

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Speaker 2: dot org.

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Speaker 3: And sign up.

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Speaker 2: If you don't do it, and if you don't, share

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Speaker 2: that website, because I need you not just to sign up,

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Speaker 2: I need you to share it with all your friends,

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Speaker 2: get them to sign up voter idpetition dot org. If

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Speaker 2: you don't do it, I can't do it. Like I

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Speaker 2: don't have a magic wand I'm a volunteer just like

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Speaker 2: anyone else. I make not a single penny off of

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Speaker 2: my political advocacy. I'm doing this as a passion project

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Speaker 2: because I am so sick of the way our state

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Speaker 2: has been running to the ground and we have a

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Speaker 2: bunch of liars, cheats and thieves that are profiting off

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Speaker 2: of it, and we need to fix the political system.

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Speaker 2: It requires voter ideas the starting point. Voteridpetition dot org.

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Speaker 2: Let's talk about homelessness. This is such a scam and

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Speaker 2: it's why I'm so grateful that my good friend Bill

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Speaker 2: is Saley, who's now the US Attorney for Southern California.

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Speaker 3: In the Trump administration.

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Speaker 2: He is now investigating both criminal and civil malfeasance as

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Speaker 2: it relates to California homeless funding. So they've spent twenty

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Speaker 2: four billion dollars on homelessness since Gaven Newsom was sworn

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Speaker 2: in as governor, twenty four billion. No state has spent

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Speaker 2: more money on homelessness per capita, per homeless person, per

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Speaker 2: square inch of fecal lined sidewalks in California. No state

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Speaker 2: has spent more taxpayer money by every measurement than California

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Speaker 2: on homelessness, and no state has had a bigger increase

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Speaker 2: than California. While the rest of the country since twenty

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Speaker 2: ten has seen a decline of homelessness, that's double digits,

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Speaker 2: eighteen percent decline since twenty ten in homelessness nationwide, California

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Speaker 2: has had a massive increase. It is triple digit increase

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Speaker 2: in Los Angeles, in San Diego, in San Francisco, the

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Speaker 2: urban areas. We have twelve percent of the nation's population,

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Speaker 2: but we have fifty five percent of the nation's un

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Speaker 2: sheltered homeless. Twelve percent of the population of the nation,

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Speaker 2: but fifty five percent of the homeless problem. Yet we're

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Speaker 2: spending more money than any other state. Why because in

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Speaker 2: other states, they're all the other forty nine states, they

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Speaker 2: deal with homelessness as a law enforcement issue because it is.

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Speaker 2: Let me, let me explain why are people homeless, and

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Speaker 2: people will say, correl.

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Speaker 3: It's because of the price of housing. That's why people

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Speaker 3: are homeless.

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Speaker 2: It's so expensive, no doubt, it's expensive to live in California.

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Speaker 2: But recognize that housing prices. Rents and housing prices nationwide

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Speaker 2: have gone up by some like sixty percent nationwide since

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Speaker 2: twenty ten, but homelessness has gone down by double digits.

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Speaker 2: So there is no causality or correlation between an increase

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Speaker 2: in the property prices housing prices and homelessness. There's no causation.

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Speaker 2: There's no correlation, zero, zip, nada. Now, when prices get

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Speaker 2: more expensive, people have to kind of shack up together,

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Speaker 2: and people unfortunately have to do that in California, or

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Speaker 2: they have to squad on someone's property.

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Speaker 3: But no, no, no, no, no.

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Speaker 2: Rising rents not an issue with homelessness. What is homeless?

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Speaker 2: People are not just struggling with rent. They don't have

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Speaker 2: a job, they can't keep a job. You give them

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Speaker 2: five hundred dollars, and you say, hey, I'm gonna give

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Speaker 2: you five hundred dollars a month cash, and I'm gonna

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Speaker 2: rent you an apartment for five hundred dollars a month.

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Speaker 2: They're not gonna take that five hundred dollars and pay rent.

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Speaker 2: You know we're gonna put that five hundred dollars. They're

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Speaker 2: gonna put it up their nose, down their throat, or

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Speaker 2: in their vein. Drug addiction, mental health. Those are the

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Speaker 2: two drivers of homelessness, because homeless people are broken people.

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Speaker 2: I don't like to say it that way, but that's

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Speaker 2: kind of as blunt as I can get. Now, there's

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Speaker 2: about twenty percent of homeless that are what we call

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Speaker 2: economically displaced. These are people who maybe are behind on

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Speaker 2: their bills, got evicted, or more than anything else, these

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Speaker 2: are people who get in a fight and get thrown

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Speaker 2: out of their current living situation, and so they're out

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Speaker 2: on the streets and they don't have a job and

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Speaker 2: theyn't have means. Now, they can get a job and

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Speaker 2: usually they find a place to stay, but sometimes they're

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Speaker 2: on the streets in their car. They tend to be

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Speaker 2: people who are what we call upper class homeless. They

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Speaker 2: have a car, they have a gym membership, they shower

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Speaker 2: at the gym. These twenty percent, yes we have an

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Speaker 2: issue with let's figure out how to address that. But

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Speaker 2: eighty percent of homeless are what we call chronic homeless.

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Speaker 2: They are broken people. Can I get a little bit

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Speaker 2: more personal? Yeah, I'm looking at you. I'm about to

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Speaker 2: say something. I'm about to give you an example that's

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Speaker 2: probably going to hit close to home. All of us

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Speaker 2: have a family member at some point in our life

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Speaker 2: who is a little nutty, is mentally ill, bipolar, borderline personality,

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Speaker 2: major depression, Maybe they're on drugs, maybe they engage in

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Speaker 2: substance abuse. Typically it's dual diagnose both. When you had

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Speaker 2: to deal with that family member, whether it was an aunt,

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Speaker 2: an uncle, a mom, a dad, a child, a brother,

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Speaker 2: a sister, you loved him.

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Speaker 3: Didn't you. You still love them no matter what they've

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Speaker 3: done to you.

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Speaker 2: But at some point, when you begged them and you

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Speaker 2: fought with them, you got to a point where it

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Speaker 2: was hurting you so much, or damaging you so much,

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Speaker 2: negatively impacting you so much the behavior that you finally said,

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Speaker 2: I can't live with this anymore.

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Speaker 3: You got to go.

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Speaker 2: Everyone who's homeless has had a family whose love was

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Speaker 2: not enough, whose love could not get them to deal

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Speaker 2: with the substance abuse or the mental health issue, and

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Speaker 2: they found the person finds himself on the street and

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Speaker 2: it's aspiral. So as I tell you, where love fails,

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Speaker 2: the law must intervene. The only way to get someone

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Speaker 2: to go into a treatment program, the only way to

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Speaker 2: get someone to follow their mental health therapy, take the medicine.

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Speaker 2: A lot of mental health is medicine based. Is de

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Speaker 2: mandated through the law.

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Speaker 3: The carl it's their civil right. No no, no, no, no, no,

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Speaker 3: no no no.

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Speaker 2: If someone were to suddenly stop breathing and we're choking

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Speaker 2: or passes out, government would come in the form of

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Speaker 2: an EMT, a paramedic and give them life saving therapy

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Speaker 2: mouth to mouth, and we wouldn't say you've deprived that

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Speaker 2: person of their human right. They have due process. You

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Speaker 2: can't force air in their lungs. Most people would say,

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Speaker 2: thank you for giving me CPR. We have to have

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Speaker 2: a process like all the other forty nine states, but

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Speaker 2: we don't have it here in California because the leftists

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Speaker 2: have contaminated our thinking on this issue where they basically

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Speaker 2: say it is a human right for someone to sit

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Speaker 2: on the sidewalk, and well, you know, just sit there

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Speaker 2: and do even worse than just sit there. And they

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Speaker 2: also say, becare we don't want to criminalize homelessness. I'm

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Speaker 2: telling you everyone who's homeless probably has violated the law.

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Speaker 2: They've got a wrap sheet already. We've got to use

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Speaker 2: law enforcement as the stick and the treatment as the

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Speaker 2: carrot in order to get people to break the cycle

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Speaker 2: of dependency and craziness and addiction and all sorts of

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Speaker 2: other demons to help them. But in California, we don't

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Speaker 2: do that. In California, we have something called Housing First,

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Speaker 2: and it sounds good, but it's really rotten and bad.

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Speaker 2: But the only people benefiting from Housing First are the

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Speaker 2: politicians and their campaign contributors. Coming up, I'll explain how

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Speaker 2: the money laundering scam is working for homeless funds being

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Speaker 2: transferred to politicians and their campaign contributors.

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Speaker 4: You're listening to John Cobalt on demand from KFI AM

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Speaker 4: six forty.

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Speaker 2: Carl DeMaio sitting in for John Cobalt. We're talking about homelessness.

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Speaker 2: Twenty four billion dollars of California taxpayer money spent since

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Speaker 2: Gavin Newsom came to office. We have a massive set

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Speaker 2: of tax increases that have been put into place all

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Speaker 2: around California with the label homelessness solution, Solve homelessness just.

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Speaker 3: For pennies on the dollar. We're just gonna raise a

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Speaker 3: tax here and there and we're gonna solve homelessness. It's

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Speaker 3: for the people, those poor people on the sidewalk. Do

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Speaker 3: something about it. Compassion, give us more of your money.

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Speaker 2: They took all this money from you and people are

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Speaker 2: still on the street, and in fact it's worse than ever.

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Speaker 2: So where's the money gone. It's not going to substance

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Speaker 2: abuse or mental health treatment. No, no, no, it's not

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Speaker 2: even going to shelter beds, bunk beds, shelter beds. You

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Speaker 2: know where. It's going to a program called Housing First.

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Speaker 2: Housing First says in all of the taxpayer funded programs,

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Speaker 2: if you get any state tax money or local tax money,

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Speaker 2: the homeless provider is not allowed. They are barred by

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Speaker 2: law from requiring mental health or substance abuse issues to

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Speaker 2: be addressed. You're not allowed to require it. You can't

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Speaker 2: have rules for clean, sane and sober living. If you do,

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Speaker 2: you lose your state and local money boom. You're disqualified.

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Speaker 2: And so you have to literally say, hey, you can

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Speaker 2: do whatever you want. Here are the keys to your condo.

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Speaker 2: They don't want shelter beds, they don't even want transition

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Speaker 2: housing units, temporary housing units for people who are stabilized

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Speaker 2: and they're getting a job. They're just earning enough money

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Speaker 2: for their down payment or their security deposit their own apartment. No, no, no, no,

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Speaker 2: we're not allowing transition housing anymore. In fact, they take

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Speaker 2: transition housing and they make it permanent housing. They have

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Speaker 2: something called permanent support of housing. You what that is

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Speaker 2: defined as you give the homeless drug addict, the crazy

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Speaker 2: person a key to a taxpayer funded condo unit, and

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Speaker 2: you are on the hook now to pay for that

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Speaker 2: condo unit forever. And because we don't have enough of

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Speaker 2: these condo units, the money that we are spending on

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Speaker 2: homelessness is not going to treatment. It's not going to

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Speaker 2: shelters or shelter beds. You know where it's going. It's

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Speaker 2: going to rich developers who build condo towers at a

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Speaker 2: cost of a million dollars in some cases per unit.

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Speaker 3: That's Yeah.

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Speaker 2: Nothing says affordable housing like a million dollars per unit.

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Speaker 2: This is felony, ineptitude, or criminal, which is not a

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Speaker 2: good look or it neither is acceptable. A million dollars

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Speaker 2: per unit. Sometimes we get a break. Sometimes it's only

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Speaker 2: six hundred thousand dollars per unit.

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Speaker 3: Yeah.

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Speaker 2: For public housing. Here is a story a year ago

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Speaker 2: in Los Angeles. KTLA was talking about a new homeless shelter,

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Speaker 2: massive Skyrise Tower six hundred thousand dollars per unit.

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Speaker 3: Listening.

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Speaker 5: This is an affordable housing building that will shelter people,

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Speaker 5: provide permanent homes for people who have experienced homelessness in

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Speaker 5: the past, permanent supportive housing for people people. As I mentioned,

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Speaker 5: two hundred and seventy eight apartments. This is near sixth

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Speaker 5: and San Pedro. They're furnished with central heat and air,

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Speaker 5: fully equipped kitchens, amenities like a gym, with wrap around

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Speaker 5: social services on site. This building replaces a parking lot

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Speaker 5: that was here before.

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Speaker 1: Who will live here?

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Speaker 5: The developer says, low income residents with Section H about

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Speaker 5: the Section eight vouchers for federally subsidized housing and general

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Speaker 5: tenants pay thirty percent of their income with those vouchers

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Speaker 5: The project is a public private partnership. The developer tells

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Speaker 5: me it's one hundred and sixty million dollars. That's the

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Speaker 5: basic cost of the project and had a variety of

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Speaker 5: funding sources, including thirty two million dollars from Proposition HHH,

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Speaker 5: which you may recall, was approved by LA voters in

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Speaker 5: twenty sixteen, providing funding for homeless housing. There's also county

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Speaker 5: funding involved. It works out to just under six hundred

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Speaker 5: thousand dollars a unit.

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Speaker 3: Joke's on you take a hundred thousand dollars a unit. Oh,

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Speaker 3: I don't know what's worse.

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Speaker 2: Six hundred thousand dollars per quote affordable housing unit in

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Speaker 2: a condo tower which includes a gym, a gym you know,

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Speaker 2: fitness center, a rooftop deck.

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Speaker 3: A pool, and no one's required to get a job.

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Speaker 2: By the way, God for bid, we ask people to

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Speaker 2: get jobs in this state. We do have a plan

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Speaker 2: for dealing with homelessness at Reform California.

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Speaker 3: I introduced the bill.

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Speaker 2: In fact, tomorrow the Democrats are probably going to kill

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Speaker 2: my bill. It's going to a committee hearing. Instead of

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Speaker 2: housing first, I say we need a people first solution

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Speaker 2: deal with the root cause of homelessness, which is drug

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Speaker 2: addiction and mental health issue. Require that they get the treatment,

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Speaker 2: and in the meantime, don't give them a million dollar

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Speaker 2: condo unit, don't give them a six hundred thousand dollars unit.

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Speaker 3: Give them a bunk bed in a shelter.

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Speaker 2: If our military service members can live in bunk style living,

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Speaker 2: I think a drug addict also can live in bunk

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Speaker 2: style living.

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Speaker 3: And by the way, every day they should go to treatment.

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Speaker 2: But then when they're done with treatment, they should go

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Speaker 2: and work for the public for free, picking up trash.

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Speaker 3: Along the freeways, in the beaches and the bays.

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Speaker 2: We all have the cleanest damn community you will ever imagine.

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Speaker 2: I want them scrubbing sidewalks because you know, most of

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Speaker 2: the stuff on those sidewalks yep, caused by homeless people

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Speaker 2: left there, all sorts of bodily fluids and material. Clean

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Speaker 2: up the sidewalks, pick up the trash because we're giving

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Speaker 2: you three square meals a day, we're doing the treatment program.

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Speaker 2: We're giving you housing at night in the bunk shelters,

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Speaker 2: and will let you earn a little keep and you

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Speaker 2: can save that money so that you can finally get

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Speaker 2: your own place.

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Speaker 3: Be coral. You can't require this. This is too hard nose,

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Speaker 3: it's too where's your compassion? You know what?

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Speaker 2: I don't think enabling someone to die of a drug

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Speaker 2: overdose and a taxpayer funded taj Mahal tower is compatib

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Speaker 2: I think it's a lousy It's lousy to taxpayers, it's

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Speaker 2: lousy to the people who are homeless. It's failed. You

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Speaker 2: had your shot, you spent twenty four billion dollars.

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Speaker 3: You fail.

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Speaker 2: But here's why they're going to continue to do it,

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Speaker 2: because they're not about solving homelessness. It's never been about

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Speaker 2: solving homelessness. The developers who get these contracts to do

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Speaker 2: the million dollar per unit condo towers, they give campaign

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Speaker 2: contributions to the politicians.

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Speaker 3: Yes, it always.

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Speaker 2: Comes back to what happens in the campaign funds of

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Speaker 2: the politicians. The projects have to be built with union labor.

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Speaker 2: The union dues are taken out of paychecks that goes

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Speaker 2: to politicians. But then of course the developers directly subsidize

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Speaker 2: do campaign contributions to political parties, to candidates, to ballot measures.

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Speaker 2: This is a money laundering scam, converting your taxpayer money

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Speaker 2: into campaign contributions. The politicians get a cut of the grift.

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Speaker 4: All right.

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Speaker 2: Coming up, we're going to talk to Susan Shelley of

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Speaker 2: the Howard Jarvis Taxpayer's Association. They've been great partners with

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Speaker 2: Reform California in advocating for common sense. Plus more of

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Speaker 2: your talkback, comments and questions on the iHeartRadio app So

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Speaker 2: keep them coming.

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Speaker 4: You're listening to John Cobels on demand from KFI A

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Speaker 4: six forty.

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Speaker 3: I love what we're doing today and what we're doing

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Speaker 3: all week.

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Speaker 2: We're talking about the scandals, the scams, the problems, and

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Speaker 2: the broken political system here in California. What we all

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Speaker 2: can do to force change to happen. One of the

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Speaker 2: best things you can do is help us get a

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Speaker 2: million signatures on the voter ID initiative. Go to voter

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Speaker 2: id petition dot org, voteridpetition dot org, sign the petition

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Speaker 2: and get a bunch of your friends to sign up

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Speaker 2: at voter idpetition dot org. We need a million signatures

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Speaker 2: to put it on the ballot in twenty twenty six

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Speaker 2: and clean up our elections. And I think by cleaning

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Speaker 2: up our elections, we'll clean up our politics. We're talking

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Speaker 2: about twenty four billion dollars being spent on homelessness since

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Speaker 2: twenty eighteen when Governor Gavin Newsom took office. But our

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Speaker 2: homeless problem is worse than ever, up by triple digits

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Speaker 2: in some urban areas, double digits statewide. We have twelve

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Speaker 2: percent of the nation's population here in California, but we

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Speaker 2: have fifty five percent of the nation's unsheltered homeless population.

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Speaker 2: And we prohibit homeless providers from getting any state or

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Speaker 2: local money if they use any sort of requirements for

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Speaker 2: substance abuse or mental health treatment. Getting to the root

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Speaker 2: cause of homelessness in people. No, no, you can't fix

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Speaker 2: the problem. You just got to house it. And where

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Speaker 2: do you house it? Permanent supportive development projects is what

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Speaker 2: they call them, government funded drug dens at a million

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Speaker 2: dollars per unit, and if you're lucky, it's only six

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Speaker 2: hundred thousand dollars per unit. And of course, the developers

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Speaker 2: you get all these taxpayer goodies of subsidies, turn around

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Speaker 2: and give campaign contributions back to the politicians. You understand

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Speaker 2: why this mess continues is that they continue to use

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Speaker 2: it milk it for campaign contributions. Howard Jarvis taxpi's Association

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Speaker 2: shines a light on government to expose waste, frauden abuse,

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Speaker 2: and they also oppose these boondoggle tax hikes that have

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Speaker 2: been labeled as homeless solutions, when in fact they're nothing

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Speaker 2: more than grift. Susan Shelley joins us from Howard Jarvis

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Speaker 2: Taxpar's Association. She also writes as an editorial writer for

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Speaker 2: a number of media platforms in southern California. Susan, thanks

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Speaker 2: for stopping by. So what are you looking at in

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Speaker 2: this twenty four billion dollars homelessness industrial complex that the

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Speaker 2: California politicians have built. What do you see as some

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Speaker 2: of the most shocking elements of this scam?

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Speaker 6: Well, thanks for having me, Carl to me, this is

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Speaker 6: almost becoming slapstick comedy. It's the most expensive ticket in

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Speaker 6: the history of movies, but it's slapstick comedy. Every time

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Speaker 6: the voters approve a tax increase for this terrible crisis,

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Speaker 6: the money is wasted. So what the politicians do is

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Speaker 6: they form oversight committees to give you the impression that

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Speaker 6: they are looking into what happened to your money. So

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Speaker 6: La County did a Blue Ribbon commission, which resulted in

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Speaker 6: an executive committee which recommended a leadership table, and now

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Speaker 6: they have all of these people going to meetings all

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Speaker 6: day long, and what's getting accomplished. Nothing, So the money

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Speaker 6: is wasted. They come back to the voters again and again.

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Speaker 6: We had Measure H, which was a sales tax increase,

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Speaker 6: but it was temporary. So then we had Measure A,

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Speaker 6: which made it permanent and doubled it. But of course

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Speaker 6: leadership table committees to oversee the money and all of

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Speaker 6: this to what do We have an Executive Committee for

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Speaker 6: Regional Homeless Alignant, and we have a twenty two member

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Speaker 6: board overseeing the Los Angeles County Affordable Housing Solutions Agency,

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Speaker 6: And then we have councils of government and we have

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Speaker 6: all of these different policy labs that are looking at

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Speaker 6: ways to make this accountable. It's all theater. It's all

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Speaker 6: theater because the voters have to approve the tax increases

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Speaker 6: and the voters are sick of it. So it's all

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Speaker 6: a big scam pretending they're doing oversight when in fact

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Speaker 6: they're not.

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Speaker 3: You know, my.

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Speaker 2: Bill is going up tomorrow in the Housing Committee in Sacramento.

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Speaker 2: It's called the People First Law. It would basically repeal

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Speaker 2: Gavin Newsom's Housing First approach to homelessness that says, take

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Speaker 2: all the money, don't require treatment or any life changes

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Speaker 2: for these people. Just give the money to developers subsidize

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Speaker 2: these massive towers at a million dollars per pop. My

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Speaker 2: bill basically says no more. We're not going to fund

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Speaker 2: condo towers. We're not going to fund million dollar boon

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Speaker 2: doggles per unit. We're going to fund a shelter beds,

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Speaker 2: bunk style shelter beds, and B have requirements for treatment,

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Speaker 2: and C have work requirements for the individuals who benefit

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Speaker 2: from all these welfare programs. And that that will be

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Speaker 2: our approach, which is what most states are using. And

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Speaker 2: if that these almost people don't like it, well there's

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Speaker 2: the door. You know, you're not going to get You're

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Speaker 2: not going to get a subsidy. But the Democrats, I

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Speaker 2: guarantee you tomorrow they're going to kill the bill and

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Speaker 2: they'll continue to say that they have no other choice

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Speaker 2: but housing first. How do we get past that in

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Speaker 2: terms of the political system.

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Speaker 3: In your estimation, well.

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Speaker 6: You're one hundred percent right. Housing first has been a catastrophe.

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Speaker 6: I think it went into California law in twenty fifteen

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Speaker 6: or twenty sixteen.

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Speaker 2: About time, about the time that we saw almost.

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Speaker 6: Exactly, and what it says essentially is that if there's

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Speaker 6: any public funding in the housing, they cannot turn people

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Speaker 6: away for actively using hard drugs, which really just destabilizes

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Speaker 6: everybody in the building who's not using hard drugs, because

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Speaker 6: now you've got dealers, and you've got problems, and you've

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Speaker 6: got in some cases violence, and it's a catastrophe for everybody.

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Speaker 6: So we have to get rid of this housing first thing.

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Speaker 6: There has to be some level of personal responsibility for

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Speaker 6: people who are capable of that, and for people who

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Speaker 6: have severe mental illness, gravely disabling mental illness. Housing first

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Speaker 6: is not the solution. The solution is to have well

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Speaker 6: funded mental health hospitals for people who need medical care.

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Speaker 6: We're not doing people any favors by saying you're free

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Speaker 6: to sleep on a park bench, or we'll charge the

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Speaker 6: taxpayers something like one hundred and thirty seven thousand dollars

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Speaker 6: a year to keep you in a motel room. That

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Speaker 6: is not a solution, and it's not good for the

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Speaker 6: people who are on the street. It's not good for

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Speaker 6: the communities, it's not good for the taxpayers. Who is

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Speaker 6: it good for the people who are drawing huge salaries

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Speaker 6: and getting these big contracts to spend these billions of dollars.

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Speaker 6: They're doing fine, but everybody else is hurting.

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Speaker 1: Yeah.

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Speaker 3: We also have our good friend Bill A.

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Speaker 2: Saley, who was in the state legislature but just got

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Speaker 2: appointed US Attorney for Southern District the Central District, Sorry,

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Speaker 2: and is investigating homeless fraud by state and local politicians

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Speaker 2: and the various developers and grant recipients and consultants and contractors.

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Speaker 2: He's going after civil and criminal liabilities in his investigation,

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Speaker 2: and he says that he will indict people if evidence

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Speaker 2: shows that they've misappropriated taxpayer funds. Do you think it's

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Speaker 2: going to take indictments in order to start getting this

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Speaker 2: whole entire scandal out to the public light, to start

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Speaker 2: getting reform.

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Speaker 6: I do think so. I think the advantage of a

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Speaker 6: federal investigation from the US Attorney's Office and Bill A.

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Speaker 6: Sale will do a remarkable job. He's great. The advantage

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Speaker 6: is that it comes with all of the resources of

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Speaker 6: the federal government subpoena power, grand juries, but the IRS

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Speaker 6: Criminal Division, the US Treasury Department finding suspicious activity reports

437
00:26:23,080 --> 00:26:25,199
Speaker 6: that come in from banks. They're going to find the

438
00:26:25,240 --> 00:26:27,760
Speaker 6: wire transfers, if there are any that are illegal, they're

439
00:26:27,760 --> 00:26:30,119
Speaker 6: going to find all of it. And to the extent

440
00:26:30,160 --> 00:26:32,880
Speaker 6: that federal law was broken, people should be held accountable

441
00:26:33,280 --> 00:26:36,920
Speaker 6: because this is not solving the problem. Throwing these billions

442
00:26:36,960 --> 00:26:39,760
Speaker 6: and billions of dollars at it not solving the problem.

443
00:26:39,840 --> 00:26:40,800
Speaker 6: It's unacceptable.

444
00:26:41,480 --> 00:26:44,800
Speaker 2: Susan Shelley with Howard Jarvis Taxis Association, thanks for shining

445
00:26:44,800 --> 00:26:46,840
Speaker 2: a light on this and staying on top of it.

446
00:26:48,040 --> 00:26:50,600
Speaker 2: Let me tell you this, I do believe that criminal

447
00:26:50,640 --> 00:26:53,760
Speaker 2: misconduct will be found by BILLI Sale, but I will

448
00:26:53,800 --> 00:26:56,520
Speaker 2: also tell you that the reason why politicians are able

449
00:26:56,520 --> 00:27:00,800
Speaker 2: to get away with this crap is that waste full spending,

450
00:27:02,040 --> 00:27:09,879
Speaker 2: felonious wasteful spending is not technically illegal. It's immoral, it's unacceptable.

451
00:27:10,640 --> 00:27:14,480
Speaker 2: But for government wasteful spending, I mean golly, they'll just

452
00:27:14,520 --> 00:27:17,400
Speaker 2: simply say, well, the voters get to throw politicians out.

453
00:27:17,440 --> 00:27:20,640
Speaker 2: That's the criminal sentence, that's the sanction, that's the accountability

454
00:27:20,680 --> 00:27:21,600
Speaker 2: to throw them out of office.

455
00:27:22,280 --> 00:27:22,840
Speaker 3: Here's the thing.

456
00:27:24,119 --> 00:27:27,120
Speaker 2: We have to open the eyes of voters to see

457
00:27:27,440 --> 00:27:30,560
Speaker 2: this is not about helping people. It's not helping people, clearly,

458
00:27:30,920 --> 00:27:35,760
Speaker 2: problems getting worse. This is about politicians giving kickbacks to

459
00:27:36,040 --> 00:27:40,760
Speaker 2: their campaign contributors. What's astounding about this is that they

460
00:27:40,840 --> 00:27:43,920
Speaker 2: give the money to these developers, and in the plain

461
00:27:44,000 --> 00:27:46,159
Speaker 2: light of day, the developers turn around and cut a

462
00:27:46,160 --> 00:27:49,359
Speaker 2: campaign check back. But because you can't prove there's a

463
00:27:49,400 --> 00:27:51,639
Speaker 2: quid pro quote, it's more of like a wink and

464
00:27:51,720 --> 00:27:57,240
Speaker 2: a nod. It's hard to prosecute because you can't prohibit

465
00:27:58,119 --> 00:28:00,520
Speaker 2: someone who You can't say it's illegal for someone to

466
00:28:00,520 --> 00:28:03,199
Speaker 2: give a campaign contribution. I wish we could do that,

467
00:28:03,359 --> 00:28:07,160
Speaker 2: but the First Amendment political speech is protected, and speeches

468
00:28:07,160 --> 00:28:11,399
Speaker 2: and campaign contributions have been considered to be speech. What

469
00:28:11,440 --> 00:28:13,840
Speaker 2: we need to do is connect the dots and say

470
00:28:13,920 --> 00:28:18,000
Speaker 2: follow the money. Taxes are increased, money's given to a developer.

471
00:28:18,160 --> 00:28:22,119
Speaker 2: Developer gives it back to the politician. The politician raises

472
00:28:22,160 --> 00:28:25,080
Speaker 2: your taxes, gives the money to developer. Developer gives it

473
00:28:25,080 --> 00:28:28,560
Speaker 2: back to the politician. Rinse and repeat, Rinson repeat, it's

474
00:28:28,600 --> 00:28:29,280
Speaker 2: the scam.

475
00:28:29,600 --> 00:28:31,040
Speaker 3: Follow the money.

476
00:28:31,080 --> 00:28:33,720
Speaker 2: Coming up, we're gonna do more of your talkback feature,

477
00:28:35,040 --> 00:28:38,400
Speaker 2: your submissions on the talkback feature on the iHeartRadio app,

478
00:28:38,440 --> 00:28:42,480
Speaker 2: so keep them coming. Also, we're going to get into

479
00:28:42,520 --> 00:28:44,520
Speaker 2: fixing schools. In our three o'clock hour.

480
00:28:45,360 --> 00:28:49,840
Speaker 4: You're listening to John Cobels on demand from KFI A six.

481
00:28:51,080 --> 00:28:55,760
Speaker 2: Carl DeMaio, California State Representative, Chairman of Reform California, filling

482
00:28:55,800 --> 00:28:58,760
Speaker 2: in for John Cobel. He's off on vacation this week

483
00:28:58,760 --> 00:29:01,400
Speaker 2: and I'm having a lot of fun. I've asked you

484
00:29:01,600 --> 00:29:08,240
Speaker 2: to ask any question, or share any feedback, or bring

485
00:29:08,320 --> 00:29:10,200
Speaker 2: up any topic or issue that you want me to

486
00:29:10,240 --> 00:29:14,160
Speaker 2: weigh in on about how government works or as the

487
00:29:14,200 --> 00:29:18,760
Speaker 2: case maybe does not work. Use the talkback feature on

488
00:29:18,840 --> 00:29:23,719
Speaker 2: the iHeartRadio app to share your feedback and ask your question.

489
00:29:25,480 --> 00:29:26,080
Speaker 3: So do we have.

490
00:29:26,040 --> 00:29:28,239
Speaker 2: Any additional ones that you want to hit me with now?

491
00:29:28,240 --> 00:29:30,360
Speaker 2: But again, as I said in the last hour, I

492
00:29:30,440 --> 00:29:34,920
Speaker 2: do not get to pre vet these. I don't listen

493
00:29:34,920 --> 00:29:37,200
Speaker 2: to them ahead of time. I'm hearing them right as

494
00:29:37,240 --> 00:29:40,320
Speaker 2: you're hearing them, so hopefully I'm not going to get stumped.

495
00:29:41,640 --> 00:29:45,680
Speaker 2: But producer Ray and director Eric have gone through the

496
00:29:45,720 --> 00:29:48,640
Speaker 2: talkback submissions and they've got a couple for me to

497
00:29:50,080 --> 00:29:50,560
Speaker 2: respond to.

498
00:29:50,680 --> 00:29:51,960
Speaker 3: So let's go with the next one.

499
00:29:52,120 --> 00:29:54,840
Speaker 7: Hi, Carl, this is Greg and Temecula. I'm really glad

500
00:29:54,920 --> 00:29:57,040
Speaker 7: you're sitting in for John in the next couple of days.

501
00:29:57,360 --> 00:30:00,280
Speaker 7: I'd like you to talk to us about all of

502
00:30:00,320 --> 00:30:03,440
Speaker 7: them EDD money that was stolen, billions and billions and

503
00:30:03,480 --> 00:30:06,920
Speaker 7: billions of dollars that suddenly went missing and nobody's accounting

504
00:30:06,960 --> 00:30:09,320
Speaker 7: for it. So could you look into that and tell

505
00:30:09,400 --> 00:30:10,800
Speaker 7: us what's going on. Thanks.

506
00:30:11,400 --> 00:30:14,959
Speaker 3: Oh, that's a good topic. I really appreciate you bringing

507
00:30:15,040 --> 00:30:18,040
Speaker 3: it up. What is EDD? Is it one of those

508
00:30:18,080 --> 00:30:20,480
Speaker 3: blue pills that some of the old guys take. No, no, no,

509
00:30:20,480 --> 00:30:20,880
Speaker 3: no no.

510
00:30:21,840 --> 00:30:26,800
Speaker 2: EDD is the Employment Development Department. In other words, it

511
00:30:26,960 --> 00:30:30,960
Speaker 2: is the unemployment insurance. So when you lose a job,

512
00:30:31,040 --> 00:30:36,360
Speaker 2: you get unemployment. And so in California, Gavin Newsom shut

513
00:30:36,360 --> 00:30:40,560
Speaker 2: down our economy in twenty twenty, you may remember, and

514
00:30:40,600 --> 00:30:43,200
Speaker 2: for the first time ever, some of you had to

515
00:30:43,200 --> 00:30:47,080
Speaker 2: go and get unemployment. And so government wrote a bunch

516
00:30:47,080 --> 00:30:51,840
Speaker 2: of checks and all the scammers said, ooh, this is

517
00:30:51,880 --> 00:30:56,880
Speaker 2: a great system. Let's create fictitious people like Mickey Mouse

518
00:30:58,400 --> 00:31:03,840
Speaker 2: and put in for unemployment. Gavin Newsom did not manage

519
00:31:03,880 --> 00:31:07,960
Speaker 2: the program properly, and as a result, thirty ready for this,

520
00:31:08,200 --> 00:31:14,480
Speaker 2: thirty billion dollars in fraudulent unemployment checks were mailed out

521
00:31:15,600 --> 00:31:17,320
Speaker 2: and he didn't care about it.

522
00:31:17,640 --> 00:31:18,840
Speaker 3: He didn't. He didn't.

523
00:31:18,880 --> 00:31:21,320
Speaker 2: No one held him accountable. The liberal media certainly hasn't

524
00:31:21,320 --> 00:31:23,480
Speaker 2: hold him acount held him accountable.

525
00:31:23,040 --> 00:31:24,040
Speaker 3: Thirty billion dollars.

526
00:31:24,480 --> 00:31:28,600
Speaker 2: Most people would literally lose their job over thirty billion dollars.

527
00:31:28,600 --> 00:31:30,720
Speaker 3: Three million dollars would be too much.

528
00:31:31,360 --> 00:31:37,320
Speaker 2: This guy literally lost thirty billion dollars for taxpayers, and

529
00:31:37,400 --> 00:31:41,400
Speaker 2: the media shrugged and he got off the hook. In

530
00:31:41,480 --> 00:31:45,840
Speaker 2: order to pay the thirty billion, he borrowed twenty eight

531
00:31:45,880 --> 00:31:48,160
Speaker 2: billion dollars from the federal government.

532
00:31:49,800 --> 00:31:50,400
Speaker 3: In your name.

533
00:31:51,560 --> 00:31:57,600
Speaker 2: And now the bill is due. So instead of Gavin

534
00:31:57,640 --> 00:32:02,320
Speaker 2: Newsom saying, all right, government bureaucrats screwed this up, so

535
00:32:02,400 --> 00:32:04,600
Speaker 2: we're gonna have to take this from the state general fund,

536
00:32:04,600 --> 00:32:07,320
Speaker 2: which means we have to cut pay, cut the bloat,

537
00:32:07,800 --> 00:32:12,520
Speaker 2: shrink the bureaucracy, in other words, doze California. Instead of

538
00:32:12,560 --> 00:32:16,920
Speaker 2: telling the bureaucrats they screwed up and they're gonna have

539
00:32:16,960 --> 00:32:21,520
Speaker 2: to tighten the belt, what do they do. They increase

540
00:32:21,680 --> 00:32:27,200
Speaker 2: the payroll tax on every business in the state. The

541
00:32:27,240 --> 00:32:30,840
Speaker 2: payroll tax, So for every job you have at your

542
00:32:31,840 --> 00:32:35,480
Speaker 2: employee that you have at your business, you're gonna pay

543
00:32:36,320 --> 00:32:40,880
Speaker 2: sixty three dollars in a higher payroll tax. This is

544
00:32:40,880 --> 00:32:43,560
Speaker 2: more than a billion dollars of tax increases each year.

545
00:32:44,960 --> 00:32:49,920
Speaker 2: So he's gonna raise payroll taxes tied to every single

546
00:32:50,040 --> 00:32:52,960
Speaker 2: job that we have in California. When you increase the

547
00:32:53,000 --> 00:32:55,880
Speaker 2: cost of creating a job in California, guess what happens.

548
00:32:56,400 --> 00:33:00,000
Speaker 2: Number One, people don't create jobs in California. They create

549
00:33:00,160 --> 00:33:03,040
Speaker 2: jobs in other states because it's cheaper. And number two,

550
00:33:03,920 --> 00:33:08,400
Speaker 2: they lay people off. Less money in your labor account

551
00:33:08,480 --> 00:33:11,960
Speaker 2: means less money in people's paychecks and in their pockets.

552
00:33:13,240 --> 00:33:20,200
Speaker 2: Gavin Newsom imposed through his budget a massive payroll tax,

553
00:33:20,280 --> 00:33:24,000
Speaker 2: a job's tax, and the media doesn't make a big

554
00:33:24,000 --> 00:33:31,320
Speaker 2: deal about it, big tax increase instead of taking it

555
00:33:32,440 --> 00:33:38,200
Speaker 2: through efficiencies and reform. Oh, by the way, he raises

556
00:33:38,280 --> 00:33:41,680
Speaker 2: taxes across the state on all the small businesses and

557
00:33:41,720 --> 00:33:45,800
Speaker 2: all these job creators and kills jobs, while giving his

558
00:33:46,360 --> 00:33:53,760
Speaker 2: rich Hollywood billionaire friends a tax credit of seven hundred

559
00:33:53,760 --> 00:33:59,000
Speaker 2: and fifty million dollars. So the big billionaire media companies,

560
00:33:59,040 --> 00:34:01,960
Speaker 2: the Hollywood studios are going to get a tax credit

561
00:34:03,200 --> 00:34:07,640
Speaker 2: while everyone else gets sucker punched with a per job

562
00:34:08,320 --> 00:34:09,640
Speaker 2: payroll tax increase.

563
00:34:09,920 --> 00:34:13,879
Speaker 3: Mccarl, the Hollywood jobs are important too.

564
00:34:14,160 --> 00:34:16,520
Speaker 2: You know what, I don't like picking winners and losers.

565
00:34:16,560 --> 00:34:19,920
Speaker 2: How about we make everyone a winner by reducing the

566
00:34:20,080 --> 00:34:24,359
Speaker 2: costs across the board for any job created, whether it's

567
00:34:24,360 --> 00:34:29,080
Speaker 2: in Hollywood, whether it's in healthcare, whether it's in construction.

568
00:34:29,480 --> 00:34:32,799
Speaker 2: Why don't we make California a job friendly state.

569
00:34:32,640 --> 00:34:33,560
Speaker 3: Across the board.

570
00:34:33,680 --> 00:34:37,359
Speaker 2: Rather than saying, well, you, Hollywood studios, you've been really

571
00:34:37,360 --> 00:34:40,120
Speaker 2: helpful to us by putting out your propaganda films.

572
00:34:40,840 --> 00:34:42,160
Speaker 3: You've lied to people in your.

573
00:34:42,160 --> 00:34:45,600
Speaker 2: Quote unquote news programs, and you ligne our pockets with

574
00:34:45,680 --> 00:34:50,120
Speaker 2: campaign contributions. So you get a tax credit of almost

575
00:34:50,160 --> 00:34:53,640
Speaker 2: three quarters of a billion while we increase a billion

576
00:34:53,719 --> 00:34:58,880
Speaker 2: dollars of taxes on everyone else. Now, you don't do

577
00:34:58,920 --> 00:35:02,319
Speaker 2: it that way. You cut taxes across the board and

578
00:35:02,360 --> 00:35:05,560
Speaker 2: make it better for all job creators to create jobs.

579
00:35:05,600 --> 00:35:09,080
Speaker 2: That's not what Newsom has done. This edd scandal is

580
00:35:09,120 --> 00:35:11,040
Speaker 2: not just about the fraud. It's about all this other

581
00:35:11,160 --> 00:35:15,320
Speaker 2: nonsense that has happened thereafter. All right, keep those questions

582
00:35:15,360 --> 00:35:18,439
Speaker 2: coming on the iHeartRadio app. Also sign up at voter

583
00:35:18,600 --> 00:35:21,319
Speaker 2: idpetition dot org if you want to get California voter

584
00:35:21,360 --> 00:35:24,600
Speaker 2: ID on the ballot. Voteridpetition dot org.

585
00:35:24,640 --> 00:35:25,400
Speaker 3: That's the website.

586
00:35:25,440 --> 00:35:28,560
Speaker 2: Coming up three o'clock hour, we're gonna talk about fixing schools.

587
00:35:28,840 --> 00:35:31,880
Speaker 2: It's really not that hard if you have the political willingness,

588
00:35:31,920 --> 00:35:33,440
Speaker 2: and we're going to talk about how we build the

589
00:35:33,440 --> 00:35:36,400
Speaker 2: political willingness. Coming up, this is Carl Demio sitting in

590
00:35:36,400 --> 00:35:39,000
Speaker 2: for John Cobelt, but first News with Eileen Gonzalez in

591
00:35:39,040 --> 00:35:40,600
Speaker 2: the KFI twenty four hour Newsroom.

592
00:35:40,640 --> 00:35:43,400
Speaker 1: Hey, you've been listening to the John Covelt Show podcast.

593
00:35:43,480 --> 00:35:45,960
Speaker 1: You can always hear the show live on KFI Am

594
00:35:46,000 --> 00:35:49,000
Speaker 1: six forty from one to four pm every Monday through Friday,

595
00:35:49,000 --> 00:35:52,320
Speaker 1: and of course, anytime on demand on the iHeartRadio app