Experts Expound: Affordability

Lawmakers have been talking about making California more affordable for two years now. How would you grade their efforts so far? 

“For things in their control C+. But it probably feels like an F to most folks.”

“The dirty little not-so-secret secret is that, other than cutting taxes or license fees, politicians have very little impact on prices or affordability. Prices of most things are set by the market, or by monopolistic practices by suppliers and producers. Any politician who tells voters they will lower utility rates by 25 percent (looking at you, Tom Steyer) is running a scam, and will have no operational capability of delivering on that promise.”

“F!”

 “Grade: C

The Legislature gets points for effort and incremental reforms, but fails on execution and outcomes. Until California tackles structural drivers—taxes, regulation, and energy costs—affordability will remain more of a talking point than a reality.”

“The fact that Democratic legislators are even talking about this issue is positive. But it’s been largely all talk. Many bills creating new regulations and empowering agencies to generate more red tape are still advancing from the stupid bill factory.”

“Epic fail. Only a small fraction of Black or Latino Californians can afford to buy a home. But there are models for how to do better. Progress toward making child care more affordable for 200,000 children via public funding is one example. With the federal administration finding new ways to make life unaffordable, it will take bigger bolder action to have any effect. Cracking down on price gauging for essentials would be a start.”

“The problem with “fixing” the affordability crisis is anything “lawmakers” can actually do about it takes years to have any impact. Streamline housing? Great, but it won’t reduce rents or mortgages now, if ever! CARB is proposing changes to Cap and Invest that reduces the financial impact on electric utilities, (at great cost to many GHG reduction programs, including infill housing) Will that translate to lower energy rates? Maybe! Insurance costs are skyrocketing, if you cap those rates, companies just stop offering insurance here at all, and the programs that can actually reduce risk through fire hardening and other measures to make homes less vulnerable to disasters, all take time and cost a lot of money. So don’t answer your specific question, I give lawmakers about a C grade for their efforts to reduce costs… With the caveat that we haven’t seen the results of most of their effort yet. Maybe that grade goes up to a B, and maybe it drops to a D. The proof is in the pudding.”

“They get an F just for talking about it in a way that indicates that they have some kind of control. The reality is that prices for goods and services are made up of a large number of smaller decisions including housing density, minimum wage laws, employer mandates, decisions about military conflicts around the world.  To think that just passing a single bill in Sacramento will be a magic wand shows a complete lack of understanding.”

“It’s all talk. They deserve a Fail. Look at it issue by issue. Housing: enviros/labor/lawyers make it hard and expensive to build. Legislators preen but don’t buck the special interests. Then, there’s energy: enviros make utilities buy more expensive green power and CPUC has to grant higher rates. Insurance: “consumer” groups push for artificially low rates, the market contracts, and actual consumers have to go to the FAIR Plan, which is more expensive. Gas: enviros push to restrict California oil production, so we use diesel ships to travel from far away to bring in dirtier oil and then require a unique, more expensive refining process while vilifying refiners. These are all policy choices and leaders are afraid to do anything real to change it. Where are the adults?”

“Costs keep rising because the system works for the politically connected, not for working people. Farm regulation costs are up 1,300% since 2006. Californians pay $1.75 more per gallon of gas than the national average. Utilities are 60% higher than the rest of the country, with only Hawaii worse.

Politicians love to talk about affordability and hold hearings, but nothing changes because the system works for them. As long as campaign cash keeps coming and the wine keeps flowing, Californians get stuck with the bill.”

“Slow but steady progress in undoing the anti-growth Boomer policies that have made this an awesome place to live for everyone born before 1980, myself included, and an impossible place for almost everyone else. I’m hopeful to see them get their arms around the insurance market specifically, that’s an area they can regulate more and better. We all know the energy companies screw us in the back rooms (hi Enron! I’m old enough to remember), so from a communications standpoint, I’m always delighted to see a public call to tighten the screws.”

Our panel of experts: Elizabeth Ashford, Hector Barajas, A.G. Block, Barry Brokaw, Samantha Corbin, Jon Costantino, Richard Costigan, Gregg Fishman, Tim Foster, Rex Frazier, John Howard, Fiona Hutton, Gale Kaufman, Steven Maviglio, Mike MeCey, Paul Mitchell, Jack Ohman, Kassy Perry, Matt Rexroad, Garry South, Paula Treat, Micah Weinberg, Bill Wong, Daniel Zingale