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.”
About CALED
The California Association for Local Economic Development (CALED) is California’s premier economic development organization dedicated to advancing its members’ ability to achieve excellence in delivering economic development services to their communities and business clients. CALED’s membership consists of public and private organizations and individuals involved in economic development: the business of creating and retaining jobs. More information is available at www.CALED.org.