2024 in Review: California Edition

The Golden Gate Bridge in a file photo. Trevor Piper/The Epoch Times

California residents lived through an eventful year, experiencing a range of political and social issues as the state went through a contentious presidential election, a major budget deficit, inflation, disasters, and much more.

Here’s a look at some of the major news items for the Golden State in 2024.

Natural Disasters

Approximately 150 feet of the Santa Cruz pier collapsed into the ocean in California’s central coast Dec. 23 due to surging waves. Three individuals fell into the water and suffered minor injuries, said officials. A man also died the same day after a large wave trapped him beneath debris on a Santa Cruz County beach.

Landslides in Rancho Palos Verdes in Southern California progressed over the year, ultimately endangering hundreds of homes and leading to dramatic scenes as shifting terrain impacted the community.

In January, a record-breaking storm led to torrential rain, flash flooding, millions of dollars in damage, and hundreds of rescues in San Diego. Additionally, a downpour over two days in February led to nearly 500 landslides in the Los Angeles area and several deaths statewide.

Nearly 8,000 wildfires burned more than 1 million acres in California throughout the year. Approximately 1,680 structures were destroyed and one life was lost due to fire, according to Cal Fire statistics.

A 7.0 magnitude earthquake struck on Dec. 5 in Northern California near the small town of Ferndale, leading to a brief tsunami warning and minimal damage. Shockwaves could be felt miles away, according to witnesses.

Other big tremors this year include a 4.7 magnitude quake in September near Malibu and one near Los Angeles in August that registered 4.4 on the Richter scale.

People attempts to clear away debris from a mudslide after a powerful long-duration atmospheric river storm in Beverly Hills, Calif., on Feb. 5, 2024. Mario Tama/Getty Images

State Budget

California faced a significant budget shortfall of approximately $73 billion, according to the nonpartisan Legislative Analyst’s Office. The state navigated its dilemma with a series of spending cuts, deferrals, and some borrowing to cover costs.

About $13 billion in reserves were also tapped to cover the deficit.

“We must bring our books back into balance,” Gov. Gavin Newsom said during a press conference in January. “We must correct for more volatility than originally anticipated.”

State Sen. Roger Niello, vice chair of the Senate’s Budget Committee, said the plan creates uncertainty and could present problems in future years.

“This budget is balanced nominally, but it is not sustainable,” Niello told The Epoch Times. “There are a number of items in there that will create deficits as we get through the budget year.”

One item still in question is the lack of money to pay down the state’s $21.1 billion in debt owed to the federal government for COVID-era loans.

Looking forward, revenues are currently exceeding forecasts. Receipts totaled $7.5 billion over projections, according to a Dec. 24 report from the state’s Department of Finance.

The governor will deliver his new budget proposal in January 2025 and outline his spending plan, as well as initiate discussions with the Legislature.

Planned expenditures significantly exceeded revenues over the past two budget cycles, and some lawmakers say the problem lies in the government’s spending patterns.

“We have a spending problem,” Assembly Republican Leader James Gallagher told The Epoch Times. “Until we rein in the spending, we will continue to have budget deficits.”

The state’s analyst’s office repeatedly recommended curbing costs and cutting ongoing spending to help balance the budget.

Republican Minority Leader Assemblyman James Gallagher speaks to the Legislature, at the Capitol in Sacramento, Calif., on Aug. 31, 2024. Travis Gillmore/The Epoch Times

Homelessness

A report released Dec. 27 by the U.S. Housing and Urban Development Department (HUD) found that California leads the nation with more than 187,000 homeless people—including more than 25,000 people in families with children.

Two-thirds of all homeless in the state are unsheltered, and approximately 28 percent of all homeless veterans are in California, according to the report.

In response, Newsom said during a press conference Dec. 27 on a separate topic that the data showed promising signs, including that California’s growth rate of homelessness at about three percent from 2023 to 2024 was much smaller than the 18 percent increase experienced nationwide.

Meanwhile, according to results of a statewide audit released in April, billions of dollars spent on homeless programs have gone unaccounted for, as the California Interagency Council on Homelessness was found to have stopped collecting and reporting data in 2021.

Critics have called on the governor to halt ineffective spending and focus on other measures to address homelessness.

“Gavin Newsom literally lost track of the $27 billion he spent on the homeless crisis,” Republican Leader state Sen. Brian Jones said in a Dec. 27 statement. “Today’s HUD report makes it clear that instead of solving the problem, Newsom’s endless spending ‘solution’ has only made it worse. It’s time for compassionate enforcement to fix the humanitarian crisis on our streets.”

Earlier this year, in July, Newsom sparked debate by ordering state departments and agencies to start clearing homeless encampments that posed an imminent threat to public safety. While the governor lacked the authority to direct local governments to do the same, he urged such officials to adopt similar policies.

Some local officials applauded the move, while others criticized what they said would result in arresting people for having nowhere to sleep, or simply moving them from place to place.

A month later, Newsom doubled down on his policy, saying he would block funding to local governments that failed to clear unsafe homeless camps.

“If we don’t see demonstrable results, I’ll start to redirect money,” Newsom said. “I’m not interested in status quo ante anymore.”

City sanitation workers clear an encampment as workers help bring unhoused people to interim housing, as part of an 'Inside Safe' operation, in Los Angeles on Sept. 26, 2024. Mario Tama/Getty Images

Public Safety

Communities across the state faced increased stress over the year from fentanyl and other drug use, retail theft, and property crimes.

Voters signaled their frustration with an overwhelming approval of nearly 70 percent for Proposition 36 in November. The new law took effect Dec. 18 and allows prosecutors to charge felonies for repeat offenders of some drug and theft crimes.

Mendocino County Sheriff Matt Kendall told The Epoch Times that it’s too early to tell how much of an impact the new law will have, but he’s already hearing word on the street that criminals know their actions will no longer be tolerated.

“It’s all about accountability,” he said. “When there’s consequences, some of these people will think twice before committing a crime.”

One important aspect of the new law is its focus on rehabilitation for those suffering from drug addiction or mental health disorders.

“For a portion of the offenders, what they need is the direction these programs can provide,” Kendall said. “For a segment of the population, they’re just going to be criminals, and they need to be in jail.”

Economy

California’s unemployment rate of 5.4 percent, as of November 2024, remains higher than the 4.2 percent national average, according to state and federal data.

Declines in the labor force and household employment were balanced by gains in education and health services, in addition to trade, transportation, and utilities, among others.

When questioned about the economy, many Californians told The Epoch Times over the year that the cost of living was the most important issue for their family.

Higher costs for rent, food, entertainment, travel, and household goods have created financial distress for some, and wages failed to keep pace with inflation.

Of prime concern for many households and businesses over the year were the rising costs of utilities.

Californians pay the highest rates in the continental U.S., and the state’s largest energy provider, Pacific Gas & Electric (PG&E) received approval for its sixth rate increase of the year Dec. 19.

On average, residents pay about twice the national average, with some customers of investor-owned utilities, including PG&E, paying more than three times what those in states like Louisiana pay.

Artificial Intelligence

The artificial intelligence (AI) industry drives California’s economy and is, in part, responsible for the state’s positive revenues in recent months, according to analysts.

Record stock level prices for Nvidia created capital gains that bolstered the state’s revenues with higher tax receipts.

With 32 of the top 50 AI companies in California, the growth of the industry is providing job opportunities and economic activity. However, concerns about energy consumption and pollution related to the data centers are topics of discussion with researchers and state officials.

In response to a question from The Epoch Times, Newsom said small modular nuclear reactors could be a solution that provides carbon-free energy.

California Gov. Gavin Newsom speaks at Shasta College at a press conference on Dec. 16, 2024. Travis Gillmore/The Epoch Times

“You’re seeing a race now around energy, just as it relates to [AI computing] and the component parts of that,” the governor said.

“That’s an evolving issue for the state of California as we continue to dominate and lead in terms of being the biggest beneficiary of this industry, and at the same time continue to advance our low carbon green growth efforts.”

Elections

In what some are calling a historic election, Californians voted to strengthen penalties for repeat criminal offenders and flipped two Assembly seats and one Senate seat from Democrat to Republican.

In the presidential election, more than 9 million Californians voted for Vice President Kamala Harris, and more than 6 million voted for President-elect Donald Trump.

Ten counties flipped, supporting Trump this year after voting for Biden in 2020.

Meanwhile, Republicans lost three seats in Congress with upsets in the Central Valley and Southern California.

Challenger Adam Gray defeated incumbent Rep. John Duarte (R-Calif.) by 187 votes in the state’s 13th District. Rep. Mike Garcia (R-Calif.) lost his 27th District seat representing parts of Los Angeles County to Democrat George Whitesides. And Rep. Michelle Steel (R-Calif.) lost to Derek Tran in the state’s 45th District.

In another notable race, former Democratic Party Assemblyman Dave Min defeated Republican Scott Baugh in an open challenge for the state’s 47th Congressional District in Orange County.

And former Congressman, now Sen. Adam Schiff (D-Calif.), defeated former baseball player Republican Steve Garvey to take the seat that once belonged to former Sen. Dianne Feinstein.

With the end of the year approaching, the state will see hundreds of new laws take effect Jan. 1, and the Legislature will reconvene Jan. 6.

A previous version of this article misstated the percent increase in homelessness across the United States. The Epoch Times regrets the error.