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GOP candidates release ‘Califraudia’ report claiming California lost $250 billion to fraud, waste, and abuse

Image Credit: KTLA 5

GOP candidates release 'Califraudia' report claiming California lost $250 billion to fraud, waste, and abuse
Image Credit: KTLA 5

On KTLA 5, anchors Micah Ohlman and Cher Calvin opened a wide-ranging conversation with Republican candidate for California governor Steve Hilton by putting one word front and center: fraud. Not just election fraud, but the kind of money-leak fraud Hilton says is quietly draining California’s budget.

Hilton came on to talk about a new preliminary report he helped release called “Califraudia,” which he describes as a whistleblower-driven review of alleged fraud, waste, and abuse across major state programs. He and the other candidates involved are claiming the total damage could be as high as $250 billion.

That number is enormous, and even Hilton framed it as an estimate based on tip-line leads, existing audits, and a broader review of state spending. Still, the way he tells it, this is supposed to be a starting gun, not the finish line.

Voter ID Gets Pitched As “Confidence,” Not A Crackdown

Before diving deep into “Califraudia,” Micah Ohlman set the table by describing a separate push coming from Reform California, an organization he said is led by Republican Assemblymember Carl DeMaio. 

https://twitter.com/WallStreetApes/status/2008695317018144793?s=20

Ohlman told viewers the group claims it has collected more than a million signatures to qualify a Voter ID initiative for the November ballot, and he noted the measure would still need 800,000 verified signatures to officially appear.

Ohlman described the proposal as a constitutional amendment that would require voter ID for ballots cast both in person and by mail, and would require election officials to maintain accurate voter rolls so only eligible people are registered.

Cher Calvin then challenged Hilton with the obvious pushback: critics argue voter ID suppresses voting and tries to solve a problem they say is rare or nonexistent.

Hilton didn’t flinch. He argued that requiring ID is already normal in everyday life, and he framed it less as punishment and more as a reset button. In his view, voter ID is how you calm down suspicion and get people to trust the system again, because they can feel confident that elections are being run cleanly.

That argument is built to land with voters who are tired of hearing “cheating” claims from every direction, even when proof is contested. At the same time, it skips the hard details voters usually want, like how California would handle access issues, costs, and implementation without creating new hurdles for legitimate voters.

What Hilton Says “Califraudia” Found And How He Got To $250 Billion

When the interview pivoted to the new report, Cher Calvin asked the key question: how do you get to $250 billion?

Hilton explained that the spark for his project was a fraud scandal in Minnesota that he said first emerged around Thanksgiving. He claimed California’s risk is even bigger because it’s a larger state and, in his words, has had one-party rule that creates a “culture of corruption” and weakens checks and balances.

https://twitter.com/SteveHiltonx/status/2008579340871889119?s=20

From there, Hilton said he launched a tip line for whistleblowers to share what they know. He said the team has received hundreds of tips, and that the preliminary estimate isn’t just based on anonymous claims, but also on government information already out there.

Hilton pointed to multiple buckets of alleged losses. He cited findings he attributed to the state auditor on homelessness spending, and he also referenced admissions he said came from the state’s employment department during the pandemic. He talked about looking at state budgets broadly, and then looking at “error rates” in benefit programs like food assistance, which he suggested can translate into massive losses when the program scale is huge.

It’s worth slowing down here. Hilton is talking about a mixture of things—confirmed problems from audits, admitted losses, and what his team believes the “real” total becomes when you add whistleblower leads and program error rates together.

That approach can be valuable as a roadmap for investigators, but it is not the same thing as a final forensic audit. A preliminary report can spotlight smoke, yet it doesn’t always prove where the fire started, who fed it, and how far it actually spread.

“Open The Books”: Hilton’s Cleanup Plan If He Wins

Micah Ohlman pressed Hilton on what he’d actually do if the allegations are true.

Hilton’s answer was basically: sunlight and speed. He argued that candidates can only dig so far without access to government data, and he claimed the state could already be doing more if its leadership wanted to.

“Open The Books” Hilton’s Cleanup Plan If He Wins
Image Credit: KTLA 5

He said he would “open up the books” and push a top-to-bottom audit approach. He also talked about something he framed as even more important than a one-time review: real-time publication of spending, so the public can see where money is going while it’s going.

That’s a simple pitch with real appeal. “Show us the ledger” is not a radical idea. The real fight is always in the details – what counts as real-time, what gets posted, what gets redacted, and how quickly agencies can be forced to comply without creating loopholes or turning the whole thing into a PDF graveyard no one can navigate.

Hilton also used this part of the interview to contrast himself with Gov. Gavin Newsom, suggesting Newsom had blocked or resisted measures that would tighten oversight. The through-line from Hilton was clear: California can’t keep funding programs at scale while tolerating sloppy controls.

Newsom’s Office Fires Back, And Hilton Calls It A Dodge

The segment then jumped to the political crossfire.

Micah Ohlman brought up a response from Newsom’s press office to a claim from President Trump that California is more corrupt than Minnesota. 

Newsom’s Office Fires Back, And Hilton Calls It A Dodge
Image Credit: KTLA 5

According to Ohlman, Newsom’s team blasted Trump with harsh language and said Newsom’s administration has blocked $125 billion in fraud and arrested criminals who were “leeching off taxpayers.”

Hilton’s reply was to call the response insults instead of answers. He argued the state still hasn’t explained away the categories of losses he says are already documented, and he rattled off examples he believes show the problem is massive even before you get to whistleblower tips.

This is where politics can blur the lens. An administration can point to money it prevented from being stolen, and a challenger can point to money that still went missing anyway, and both can claim they’re proving opposite things.

The fair reading is this: California’s systems are large, complex, and have had serious failures in the past. Whether the “Califraudia” number is accurate or inflated, the fact that the debate is happening at this scale suggests public trust is thin, and officials aren’t persuading voters that oversight is strong enough.

Big Claims, Real Anger, And A Warning About What Comes Next

Toward the end, the conversation widened beyond “Califraudia” and into leadership and competence as a general theme.

Big Claims, Real Anger, And A Warning About What Comes Next
Image Credit: KTLA 5

Ohlman and Calvin noted that the week marked the anniversary of the L.A. Firestorm, and they asked Hilton what he thought about the progress since the disaster and what he would have done differently.

Hilton painted a grim picture. He described residents being bounced around by bureaucracy and argued that what was promised hasn’t matched what’s happened on the ground. He said he was planning to lay out a fire prevention plan and a better emergency response framework, and he framed the last year as a lesson in what happens when government moves slowly while people wait.

Finally, Micah Ohlman asked about Newsom’s upcoming final State of the State address and what Hilton hopes to hear.

Hilton answered with a demand for a “complete change of direction.” He blamed high costs – gas, electricity, taxes, rent, housing—on California’s regulations and leadership choices, and he said he would be delivering his own response with a different vision focused on affordability and what he called “common sense.”

Here’s the blunt reality: a claim like $250 billion is a campaign weapon unless it becomes a verified public record with documentation strong enough to survive hostile scrutiny. 

If Hilton and his allies want “Califraudia” to matter beyond a headline, the next step has to be specifics – named programs, named controls that failed, clear math, clear sourcing, and a plan that still works when opponents try to tear it apart.

At the same time, California voters don’t need to accept every big number to understand the basic point Hilton is hammering: when oversight fails, it’s regular taxpayers who pay twice – once through taxes, and again through the services that don’t improve even after billions are spent.

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