There’s a Right Way to Regulate AI—and a Very Wrong Way
You’ve probably heard the one about the masochist who asks the sadist to beat him up. The sadist says no. That hoary joke came to mind when I saw President Donald Trump’s reply to Anthropic chief executive Dario Amodei’s statement that artificial intelligence has become too dangerous not to regulate. Two rival AI chief executives, Open AI’s Sam Altman and xAI’s Elon Musk, agreed with Amodei. But Trump said no:
[W]hen, in the History of Business, did anyone see the Leaders of an Industry call for Regulation that, if strongly implemented, will drive them into oblivion and bankruptcy? AI taking over the World, destroying Humanity, and all other things bad, is a HOAX, no different from RUSSIA, RUSSIA, RUSSIA — UKRAINE, UKRAINE, UKRAINE — IMPEACHMENT HOAX #1 — IMPEACHMENT HOAX #2 — and all of the other HOAXES and SCAMS that America was forced to endure through the Destructionists’ and Deviants’ foul play and illegal conduct.
I bet you feel better already!
From a strictly medical point of view, my analogy of the masochist and the sadist does not apply. Amodei, Altman, and Musk can be faulted for not banding together earlier to demand forcefully that AI be regulated at the federal level. (Didn’t they see The Matrix?) But procrastination isn’t in the Diagnostic and Statistical Manual of Mental Disorders (though being a billionaire perhaps should). For his part, Trump isn’t a sadist, exactly, but rather suffers from the related disorder of malignant narcissism, worsened lately by a vanishing attention span. It’s our hard luck that a new global crisis is arising under the most mentally unstable president ever to occupy the White House—worse even than the heavy-drinking, deeply paranoid Richard Nixon, at the height of the Watergate scandal, talking to portraits on the White House walls. The example of how Trump handled his last global crisis—the Covid epidemic—is deeply discouraging.
Still, Trump isn’t entirely wrong to be suspicious. The tech industry has shown itself to be untrustworthy in recent years, and some degree of skepticism about how Amodei, Altman, and Musk would like this to go forward is warranted.
The main suspicion is that these AI chief executives see regulation as an opportunity to reduce competition and otherwise benefit their own dominant companies, a process known as regulatory capture. The tech venture capitalist David Sacks, who co-chairs Trump’s Council of Advisors on Science and Technology, said on X that “Anthropic is running a sophisticated regulatory capture strategy based on fear-mongering.” Aiden Gomez, chief executive of a Canadian AI startup called Cohere, wrote on his company website: “These oligopolies are now requesting to bend competition rules and be permitted to dictate the terms for everyone else. A wolf in sheep’s clothing, a cartel by any other name.”
Gomez is right to question some of what Amodei proposed in last week’s memo. The Anthropic chief’s first idea was that every “frontier AI company” commit to giving “employee-like access” to “a team of embedded third-party evaluators” who will impose safety standards. AI is “unilaterally committing to this step now,” Amodei wrote, and that’s laudable. But Amodei undermined his argument when he analogized these evaluators to bank regulators. The federal agencies that regulate banks—the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, even the Federal Reserve—are pretty much the poster child for regulatory capture. Bankers are expert at persuading regulators that this or that regulatory move will bring down the whole house of cards. They’re able to bluff this way because finance, much like AI research, is a fast-changing realm that almost nobody really understands.
Amodei’s second proposal was that “frontier AI companies within democratic countries coordinate to establish common safety standards as well as limits on the rate of unchecked AI progress.” This “will require government support,” Amodei wrote. That’s a nice way of saying it’s illegal under antitrust law. These “frontier AI companies within democratic countries” are Open AI, Anthropic, and perhaps one or two others, and if they consulted with each other as Amodei proposed they’d be operating like a cartel. Gomez is right to use that word.
Amodei’s third proposal is unassailable. It’s international cooperation to guarantee safety worldwide. To Trump that sounds like surrendering to China. But it is by far the most necessary step, and nobody with a properly functioning cerebral cortex can oppose it.
To acknowledge that Amodei’s first two proposals would give Anthropic an unfair competitive advantage needn’t be to argue against regulation. It can simply be to argue against faulty regulation. Amodei’s first proposal might be made to work if the third-party evaluator were less like the usual run of bank examiners and more like an official at the Consumer Financial Protection Bureau, or CFPB. Trump put the CFPB on ice precisely because banks (and their allies in Congress) resented its focus on the common good rather than on banking profits. A third-party evaluator who acted more like a CFPB regulator would be helpful. A third-party evaluator who acted more like an FDIC regulator probably would not.
Amodei’s second proposal can’t be made to work, but it’s a useful illustration of why AI needs to be regulated by government. The only way to set proper industry standards is for a bunch of experts to get together and hammer them out. But having the individual companies do this on their own is unacceptable because it’s anticompetitive. So instead the job typically gets done by government regulators in consultation with the companies, with public interest groups, with concerned academic experts, and various other “stakeholders” (a word I tend to avoid because it makes me think of a large cut of sirloin dangling from a grill fork). If there’s no statute under which the government may plausibly do this, then Congress should create one after conducting hearings and holding meetings that address the more obvious aspects of the problem, while leaving abstruse details to regulators.
Whatever the process, it needs to begin yesterday, because recursive self-improvement—the ability of AI to create the next generation of AI without human intervention—is right around the corner. Three weeks ago, how many of us had even heard of recursive self-improvement? Now it’s scaring us to death.
Opposition to regulating AI may not be so formidable as it seems. Venture capitalists like Sacks and Marc Andreesen are the most fervently opposed because they’re all about money. But tech entrepreneurs (omitting the Antichrist-obsessed Peter Thiel) are lately showing more sympathy toward the idea, perhaps because they’re more familiar with what AI can do. Gomez, for instance, after denouncing Amodei’s regulatory scheme, proposed one of his own, including an “independent testing” scheme that sounded a lot like Amodei’s bank-examiner proposal, only not with a risk framework defined by “a select few companies.” (Gomez even repeated Amodei’s clueless suggestion that bank regulators might provide a sound model!) Gomez’s definition of what constituted risk was too complex and technical for me to understand, but if the gist is that the focus should be on the really dangerous stuff, count me in.
Trump probably never heard of regulatory capture. But he’s right to observe that it’s unusual for a company to judge itself a threat, as Anthropic did last week. Jacob Coxon, a 27 year-old AI researcher at Anthropic, quit his job and posted on X a tweet that quickly circled the globe: “The people building AI earnestly believe that it could kill us all by the end of the decade.” In response, a top Anthropic scientist replied: “Jacob is correct here—we really do earnestly believe AI could kill all humans! I personally think it is >10% within the next decade. I believe Anthropic is trying its best, but we do not yet have a plan to solve alignment for superintelligence and are not clearly on track to.” With Amodei posting his memo shortly thereafter, Anthropic was fairly shouting: Stop me before I kill again!
If the Frankenstein monster came up to you and said, “Stop me before I kill again,” you wouldn’t ask it which safety precautions to take. You’d lock it up. The fear among AI leaders is persuasive. If they’re afraid, then I’m going to be afraid, too. But finding the solution to ameliorate these fears shouldn’t be left to them. Our democratic institutions of governance are built to handle this. Electing a Democratic Congress in November will help speed the process along. Let’s hope Trump can be persuaded to get out of the way.
Karen Delaney helped build Santa Cruz County’s Volunteer Center. Now she’s handing it off
When longtime Volunteer Center of Santa Cruz County Executive Director Karen Delaney began preparing for retirement, the organization knew it had big shoes to fill. So big, in fact, that the board kicked off an 18-month strategic planning process to help chart the organization’s next chapter.
Key to those efforts was Shawn Peterson, who was officially announced as executive director in July. Peterson has been serving as interim director since January, and has been with the organization for a decade.
New California law sets first-in-nation standards for smoke damage in homes
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California will set first-in-the-nation standards for smoke-damage testing and cleanup after the governor on Tuesday signed a package of bills to improve wildfire recovery.
Almost two years after the deadly Los Angeles County fires, many survivors have yet to return to homes that did not burn down but might not be habitable because of smoke damage. They have complained that the delays are due in part to arguments with their insurance companies over who should pay for testing and cleanup. The state Insurance Department estimates that more than 13,000 smoke-damage claims came out of the January 2025 fires.
“These new protections will make insurer obligations clearer and give homeowners more financial flexibility when they need it most,” Gov. Gavin Newsom said as he signed the bills in Altadena at a meeting with Eaton fire survivors. They take effect Jan. 1.
Assembly Bill 1642, authored by Assemblymember John Harabedian, a Democrat representing Pasadena, directs the Department of Toxic Substances Control to create standards for lead and asbestos testing, repair and removal by the end of 2028. It will have to establish similar standards for other toxic materials and contaminants by the end of 2029. Until the new standards are created, existing federal and state standards around lead and asbestos exposure will apply.
AB 1795 creates the legal presumption that smoke damage in a fire zone came from the fire, and requires insurance companies to pay for testing and remediation based on the impending standards.
“For homeowners who have already lost so much in a fire, the last thing a family should have to do is fight for a clear answer about whether it is safe to return home,” said Assemblymember Mike Gipson, a Carson Democrat and author of AB 1795, in a statement.
The insurance department, fire survivors and Los Angeles County have filed lawsuits or other legal action against State Farm and the last-resort FAIR Plan over their handling of smoke-damage claims. Last week, the county launched an investigation into Farmers over similar issues.
Other related bills by Harabedian became law after the governor signed them Tuesday, including AB 1842, which creates a statewide mortgage forbearance program for homeowners whose homes are deemed uninhabitable after a major disaster. Under the law, mortgage providers would be prohibited from charging penalties or late fees while homeowners pause payments.
Also Harabedian’s is AB 1847, which extends mortgage forbearance to 24 months for survivors of the Los Angeles County fires, and extends the latest possible deadline for a borrower’s request for forbearance to Jan. 7, 2029.
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BT Email users hit by barrage of unsolicited password reset PINs
Newsom signs law to let these Californians get out of jury duty — for good
This story was originally published by CalMatters. Sign up for its newsletters.
Starting Jan. 1, 2028, Californians ages 80 and older can opt out of jury service permanently due to a medical condition, without needing a note from a health care provider.
The change comes after Gov. Gavin Newsom signed Assembly Bill 1359 on Monday, which enables older adults to request a permanent exemption by attesting that they have an impairment that renders them incapable of performing jury service. Further medical documentation will not be required. Seniors who still want to serve on a jury can still do so.
Assemblymember Patrick Ahrens, a Cupertino Democrat, said he introduced the bill after a constituent — Dianne McKenna, a former Santa Clara County supervisor — relayed to Ahrens the difficulties she faced helping her husband get an exemption from jury service.
“Seniors are great jurists that can and will continue to serve if they’re willing and able to,” said Ahrens in an email to CalMatters. “But if they cannot, they will no longer have to jump through hoops to permanently opt out.”
Unlike some other states including Florida and Texas, California doesn’t have a blanket age of exemption for jury service. It’s 70 in Florida and 75 in Texas.
Californians 70 years and older can be excused due to a medical impairment without a doctor’s note, but they still must inform the local jury’s office that they’re unable to serve with a written excuse. But under current law, this is a one-time exemption and residents must repeat this process each time they’re selected for service.
Proponents of the measure argue that repeatedly seeking exemption can put significant stress on older individuals — particularly those with mobility issues and chronic health conditions, or those who don’t have regular access to a computer or internet. A third of adults over 80 will have difficulties staying home without assistance, and 1 in 5 will experience self-care limitations, according to a 2025 report by the Public Policy Institute of California.
The measure would be especially beneficial for people living with Alzheimer’s disease and do not have a caretaker who can assist them, said Andrew Mendoza, the director of state affairs for the Alzheimer’s Association, during a June hearing.
“This bill can assist vulnerable populations avoid what would otherwise be a stressful process to obtain documents and explain their condition as a disability during a time of great circumstantial change,” he said.
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Trump Rages Openly at Midterm Woes as His Worst Poll Yet Lands Hard
Donald Trump exploded in wild fury at the Supreme Court after it blocked his scheme to corrupt vote-by-mail. But in his bizarrely unhinged tirade was a key tell: He called the ruling a “big loss for Republicans.” In effect, he openly admitted he’s angry because he won’t be able to rig the midterms—and because his party is more likely to lose them badly. This comes as a New York Times poll finds Democrats leading by nearly nine points in the generic ballot matchup. This is the gold-standard survey and it shows Democrats with a widening lead. It also shows Democrats suddenly leading on the economy and on immigration and finds his approval lower than any president heading into a midterm since George W. Bush before the 2006 Democratic blowout. As a Times analysis concludes, a “blue wave may be building.” Taken all together, it’s arguably his worst polling news of the cycle. We talked to Democratic strategist Caitlin Legacki, a veteran of midterms. We discuss the Times poll’s hidden findings, why Texas is no longer a pipe dream, why the polls might soon start to tighten, and why that shouldn’t freak you out. Listen to this episode here.
How a gym, a farmers market and MMA fighters landed millions in Newsom’s last budget
$29 million to renovate a gym at a Santa Barbara college in Senate President Pro Tem Monique Limón’s district.
$13 million for a farmers market and food innovation hub in wealthy Marin County, where Gov. Gavin Newsom lives.
$3 million to renovate the San Jose Giants’ minor league baseball stadium in Santa Clara County.
California lawmakers doled out $1.3 billion in handouts for their legislative districts with almost zero public scrutiny or input during an annual budgeting process that allows legislators and the governor to hand-pick funding recipients in private.
The money, often known as earmarks or “pork-barrel projects,” is commonplace in California and elsewhere, even in years when the state faces huge budget deficits. The practice allows lawmakers to tout their accomplishments and woo voters.
The earmark process is so secretive that few know why some projects make the cut and others don’t, raising equity and transparency concerns, even among lawmakers. Critics argue that it allows elected officials to play favorites.
“[It] is done all behind closed doors,” said Julie Baker, CEO of California for the Arts. “It is somewhat inequitable … to have a grant-making process that everyone’s competing over and then have a process that’s non-transparent.”
Here’s how earmarks work: The leaders in the California Assembly and Senate, both Democrats, allow their colleagues to submit private wish-lists for funds with a suggested spending cap the leaders set. Then billions of dollars for hundreds of projects suddenly appear in a bill heard just days before lawmakers leave for the year, leaving little time for the public to weigh in. Lawmakers don’t put their names on the earmarks, making it hard to identify who requested what.
This year, Limón loosely capped Senate Democrats’ requests at $5 million each, said Sen. Dave Cortese, a San Jose Democrat who secured $6.5 million for his district. Lawmakers do not share their funding requests with each other, he said — at least not before they take credit for them in media releases or ribbon-cutting ceremonies.
“It’s a confidential process between each office and leadership,” he told CalMatters.
But even he bemoaned the opaque nature of it.
“Why couldn’t we do this process a little earlier and get our requests into subcommittees so the public could just see what’s going on?” Cortese said. “There’s nothing to be ashamed of here.”
‘Why did I spend all that time and energy?’The vast majority of the funding goes to urban counties such as Los Angeles and San Francisco, which are represented by powerful Democrats, and to other pet projects in Democratic leaders’ districts. Areas that are represented by Republicans typically get little to nothing.
This year, 17 counties, mostly lower population rural counties represented by Republicans, did not appear to receive any earmark funding.
“The leadership decides the major portions of the budget,” said Sen. Roger Niello, a Roseville Republican and vice chair of the Senate budget committee. “That is frustrating, but it is the system that we have.”
CalMatters compiled the earmarks in the budget measure Assembly Bill 113 and used Digital Democracy’s Find your legislators tool to determine which county and legislative district each project falls in.
More than $550 million — 42% of all earmarks identified by CalMatters — went to non-governmental organizations, mostly nonprofits, according to the analysis. It includes at least $93 million for arts projects, museums and murals, as well as funding for immigration services, land conservation and housing and homelessness.
The rest went to city and county governments for infrastructure including parks, community pools, wildfire mitigation and road repairs.
CalMatters reached out to Newsom, Limón, Assembly Speaker Robert Rivas and more than 20 other lawmakers to ask for a list of their funding requests. Few provided them.
Newsom, Rivas and Limón declined to answer questions about specific projects but told CalMatters in general statements that they are proud of the earmarks.
In a statement, Newsom spokesperson Tara Gallegos said the funding in this year’s budget will “make a lasting, meaningful difference in communities across California.”
“From supporting our natural resources, and improving recreation centers to strengthening the arts and expanding food access, these additional investments reflect a continued commitment to building stronger, healthier, and more vibrant communities for all Californians,” the statement read.
Proponents of earmarks say they empower state lawmakers to prioritize projects with urgent needs in their districts instead of funneling the money through lengthy grant applications. The earmarks are also just a sliver of the state’s $352 billion budget, they noted.
“My message to [state agencies] is, ‘You guys take the other 99.9% and leave this fraction of a percent to us,’” Cortese said. “I’ll help target some real need in these districts that you are never going to see in an office in Sacramento.”
Lawmakers gather on the Assembly floor during the final days of session at the state Capitol in Sacramento on Aug. 31, 2026.
But critics bashed state leaders for finding $1.3 billion for earmarks when the state has struggled to backfill major federal cuts to healthcare. State leaders this year relied on windfall revenue from an AI-driven economic boom, some tax increases and suspending payments to schools and state reserves to balance the budget and delay deep healthcare cuts to next year.
“They’ve said, ‘Look … there’s no extra money to spend,’ and then a half billion dollars comes out in the last 48 hours of the session,” said Geoff Green, CEO of CalNonprofits, which represents thousands of nonprofits statewide. “For entities that were working through what we considered normal processes through the entirety of the session, to then see this come out at the last second, it feels like, well, why did I spend all that time and energy?”
Susan Shelley, vice president of communications at the Howard Jarvis Taxpayers Association, accused lawmakers of handing money out to their supporters at the last moment.
“From a taxpayer perspective, we don’t have the money for this,” Shelley said.
Dance troupes, museums and MMA fightersThe biggest allocation this year was $125 million to help buy and transform a defunct Alameda County horse track into a public park — a Newsom priority. Assembly Appropriations Committee Chair Buffy Wicks and Senate Housing Committee Chair Jesse Arreguín, both Oakland Democrats, championed the funding.
Some earmarks benefited groups with wealthy backers. The state gave $25 million to the Innovative Genomics Institute, a UC Berkeley-based genome engineering research facility in Wicks and Arreguín’s districts whose funders include the Chan Zuckerberg Initiative, the Li Ka Shing Foundation and the United States Department of Defense.
Other earmarks include:
- $20 million to help build a facility for the Jewish Family and Children’s Services Holocaust Center in San Francisco, which is backed by dozens of foundations and endowment funds. Executive director Anita Friedman said the endowments only fund roughly 2% of its budget.
- $15 million to renovate the police and firefighters memorials in Sacramento’s Capital Park
- $1 million for the state’s retirement fund for mixed martial arts fighters, currently funded through ticket and vanity plate sales.
Another $86 million went to arts projects, museums and dance troupes — more than 40% of them in San Francisco.
That includes $3 million to the ODC Dance Company, whose founder Brenda Way was inducted into the California Hall of Fame by Newsom and first partner Jennifer Siebel Newsom; $2.8 million to the Center for the Art of Translation backed by Bloomberg Philanthropies and the Hawthornden Foundation; and $400,000 to the San Francisco Mime Troupe.
It’s unclear who advocated for those earmarks. Democratic San Francisco Assemblymember Matt Haney said he did not request any of them. Sen. Scott Wiener and Assemblymember Catherine Stefani, both San Francisco Democrats, did not respond to requests for comment from CalMatters.
Green, of CalNonprofit, said he worries the money is not reaching those with the most acute needs, but those with the best relationships with lawmakers.
“The capacity of a large, well-staffed institute to access resources is just a completely different universe than a smaller, volunteer, community-based organization in some more rural parts of the state,” he said, adding that the recipients appear to be “folks who have relationships already.”
Relationships matterRelationships do matter to Cortese. Among the projects he requested funding for, only one — Ashes to Beauty, which received $750,000 — is relatively new to him. He said he’s known the other nonprofits he sought funding for dating to his days as a San Jose city councilmember in the 2000s.
“If some new group came along and they seemed hopeful … but I didn’t know of them very well, I hadn’t seen their work too much in the community, I’m probably not going to entrust them with $1 million or $800,000,” he said. “It’s not a matter of any kind of favoritism.”
Cortese said his office keeps a long list of requests for funding and considers which groups are “lifting up the greater good of the community.”
Cortese asked for and received $2.1 million for First Tee-Silicon Valley, which teaches golf and leadership to high-risk kids in marginalized neighborhoods; $2.6 million to environmental nonprofit Our City Forest; and $1 million for Amigos de Guadalupe, an immigration services nonprofit.
Several earmarks went to nonprofits with ties to the governor. The Redwood High School Foundation, which funds Newsom’s high school alma mater, received $4 million for a “capital project.” Another $250,000 went to Kiss the Ground, a regenerative agriculture nonprofit whose 2020 documentary featured Newsom.
A total of $3.86 million went to the Alliance for Community Empowerment, a Los Angeles nonprofit that serves trauma and poverty survivors. Its founder, Michelle Miranda, sat on a board of community advisers to Assemblymember Jesse Gabriel, an Encino Democrat who chairs the budget committee.
Gabriel’s spokesperson Alicia Isaacs-Lee did not address specific projects but said Assembly Democrats fought for “smart, targeted, one-time investments” in healthcare, food banks, legal service providers, fire departments and nonprofits.
Homeless shelter City of Refuge Sacramento received $1.8 million to open two more homes to serve children, co-founder Rachelle Ditmore told CalMatters. She is a close friend of Sen. Angelique Ashby, a Sacramento Democrat who helped the shelter secure $8 million in 2023. Democratic Assemblymember Maggy Krell, who also represents the area, donated $10,000 from her campaign account to Ditmore’s nonprofit in August 2025.
But Ditmore told CalMatters that the governor, who signed an executive order on human trafficking at City of Refuge, may have requested the funding this year.
“This is an authentic place and I’m grateful for history, but also love that this was directed by other eyes who were able to see the value,” Ditmore told CalMatters in an email.
Sen. Lola Smallwood-Cuevas, a Los Angeles Democrat, secured $13.5 million in earmarks this year, including $500,000 for the Los Angeles Black Workers Center, which she co-founded, according to a list provided by her spokesperson Paulette Thornton.
The center is the only one in the area serving Black workers, and the funding will connect Black residents to quality jobs, Thornton said.
Rural, Republican-led counties get lessLos Angeles County, where nearly a quarter of all Californians live, received at least $300 million in earmarks this year — just under a quarter of the total and more than any other county, data analysis shows.
Santa Barbara County, Limón’s home county with a population of 450,000, received at least $72.8 million in earmarks, more than any other similarly sized county. Republican-dominated Tulare County, by comparison, received just $200,000 for its 485,000 residents.
The contrast reflects the power of leadership in Sacramento, said Jack Pitney, a political science professor at Claremont McKenna College.
“Part of the power … is the ability to get benefits for the district, and it’s not surprising that the legislative leaders tend to do pretty well in that respect,” Pitney said.
Last year, a quarter of the earmarks CalMatters identified — more than $100 million — went to the district of former Senate President Pro Tem Mike McGuire, a Santa Rosa Democrat.
This year, CalMatters identified $83.7 million in earmarks benefiting Limón’s district, including the $29 million gym renovation. Others include:
- $6 million to acquire and rehabilitate a historical building that housed nonprofit La Casa de la Raza.
- $5 million to restore Pershing Park in Santa Barbara.
- $3.3 million for a community pool in the city of Carpinteria.
- $3 million for a high school community aquatics center.
Rivas’ district, which includes parts of Santa Cruz County, received just over $10 million in earmarks, including $2.8 million for a regional soccer complex in Salinas, $2.5 million for a recreational center in King City and $525,000 for arts and culture in Watsonville. His district overlaps with that of state Sen. John Laird, a Santa Cruz Democrat who chairs the budget committee.
Laird’s district received $36.9 million, including:
- $10 million for expanding public access to the Pacific Gas & Electric-owned North Ranch property.
- $618,000 for highway traffic enforcement on the Bixby Bridge.
- $250,000 to the San Luis Obispo Beaver Brigade, a nonprofit advocating for beavers.
Gabriel’s district saw at least $7 million in earmarks, including $2.5 million to Mid Valley YMCA, $500,000 to Los Angeles youth film nonprofit Kids in the Spotlight and $200,000 to social services group Family Rescue Center.
Niello told CalMatters that GOP senators were only given $1 million each in earmarks to distribute.
“That means that I’m not able to do enough for my district [as] Dave Cortese is for his, and we both have the same size districts. Is that fair? To me, it’s not.”
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