{"id":400,"date":"2026-05-24T19:40:08","date_gmt":"2026-05-24T19:40:08","guid":{"rendered":"https:\/\/nextcitydigest.com\/?p=400"},"modified":"2026-05-24T19:40:08","modified_gmt":"2026-05-24T19:40:08","slug":"endorsement-elect-eleni-kounalakis-californias-next-treasurer","status":"publish","type":"post","link":"https:\/\/nextcitydigest.com\/?p=400","title":{"rendered":"Endorsement: Elect Eleni Kounalakis California\u2019s next treasurer"},"content":{"rendered":"
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California\u2019s next treasurer should expect to inherit the most financially volatile environment since the Great Recession.<\/p>\n

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The state faces long-running structural shortfalls. Growing federal deficits will likely drive up the state\u2019s borrowing costs. Counties are scrambling to fill gaps in once-federally funded services. And tax revenues are unnervingly dependent on the stock performance of AI companies whose business models are still evolving.<\/p>\n

These are just a handful of the challenges termed-out Treasurer Fiona Ma\u2019s successor must confront, to say nothing of hundreds of billions worth of unfunded state employee pension obligations and the endlessly escalating costs of wildfires, storms and droughts wrought by a changing climate.<\/p>\n

Treasurers are not policymakers. But as the state\u2019s chief bankers and asset managers, it falls on them to convert California\u2019s capital into policy payoffs.<\/p>\n

Of the six candidates running to replace Ma in the June 2 primary, Eleni Kounalakis is the most qualified.<\/p>\n

Kounalakis\u2019 background, which spans state politics, international affairs and private industry, is well suited for the job.<\/p>\n

As lieutenant governor since 2019, the 60-year-old San Francisco Democrat has already been operating at the highest levels of state government, including as Gov. Gavin Newsom\u2019s lead representative for California\u2019s economic interests abroad.<\/p>\n

Before that, she was the U.S. ambassador to Hungary in President Barack Obama\u2019s administration.<\/p>\n

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During the prior two decades, she helped lead her family\u2019s Sacramento-based land development firm. Given the state\u2019s constant need for more housing, her experience planning, financing and building homes at scale might be the most persuasive part of her resume.<\/p>\n

Clear command<\/h4>\n

In an interview with our editorial board, Kounalakis demonstrated a clear command of this office\u2019s responsibilities \u2014 from bond issuances and housing tax credit programs to state employee pension governance and infrastructure finance.<\/p>\n

As lieutenant governor, a role that entitled her to seats on key state lands and public universities committees, Kounalakis used her position to advance worthwhile environmental and education priorities, including banning offshore oil drilling and opposing tuition increases.<\/p>\n

If elected treasurer, Kounalakis told us her agenda would include maintaining conservative debt ratios; streamlining bond financing and revising the state\u2019s low-income housing tax credits; protecting the state\u2019s employee pension\u00a0systems \u2014 CalPERS and CalSTRS; and expanding state-run college-savings programs and low-income workers\u2019 retirement programs.<\/p>\n

Read more Word Game: May 24, 2026<\/a><\/p>\n

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Kounalakis acknowledged that if an investment \u201cposes clear long-term financial and systemic risk, it may be appropriate to reduce exposure or divest, but only when grounded in rigorous financial analysis and aligned with our fiduciary duty. \u2026 I do not support sacrificing returns for purely symbolic purposes.\u201d<\/p>\n

We urge her to stick to her word.<\/p>\n

Kounalakis\u2019 opponents offer only pieces of the picture.<\/p>\n

State Sen. Anna Caballero is Kounalakis\u2019 most serious challenger, if endorsements and campaign war chests are any guide. Based in Merced, Caballero, 72, has significant legislative and executive experience. She was mayor of Salinas and a state assemblywoman. And as the secretary of Gov. Jerry Brown\u2019s Business, Consumer Services and Housing Agency, she oversaw a $27 billion, 16,000-person bureaucracy.<\/p>\n

Caballero told our editorial board she would use state bonding authority and tax credits to build more housing, hospitals and clean energy projects, all with union labor.<\/p>\n

Caballero\u2019s approach reflects the mindset of a longtime legislator, not a financial operator. Public policy is her bread and butter, but probably not public finance. In conversation with us, she did not have the same command of this job\u2019s core responsibilities as Kounalakis. The contrast might reflect the two Democratic women\u2019s divergent educations: Caballero has a law degree; Kounalakis, an MBA.<\/p>\n

Tony Vazquez is currently a member of the California Board of Equalization, a position providing significant insight into tax collection and property assessment. The 70-year-old Democrat is a former public school\u00a0teacher in L.A. County and the ex-mayor of Santa Monica, where he now lives. In answers to our questions, Vazquez said he would use the treasurer\u2019s seats on the state\u2019s two largest pension boards to more-than-double those funds\u2019 investments in California.<\/p>\n

Fiduciary first<\/h4>\n

The job of the treasurer is first and foremost fiduciary. Vazquez\u2019s emphasis on directing funds toward in-state priorities in service of a pre-ordained arbitrary investment target \u2014 4% \u2014 jeopardizes that responsibility. Beyond that, we\u2019re not convinced his experience in local government and tax administration fully prepares\u00a0him for the scale and complexity of this job.<\/p>\n

Los Altos-based Jennifer Hawks\u2019 qualifications for this position are hard to discern. Of the two Republican candidates for treasurer, Hawks is the most serious contender, in large part because she has received the endorsement of the state GOP. In public statements, Hawks provided straightforward, non-ideological explanations for what ails state finances.<\/p>\n

However, she failed to complete our editorial board\u2019s questionnaire. Her public biography states that she is a retired businesswoman who has not held elected office. The details of her business background are not listed on her campaign website nor are they easily identifiable from media reports.<\/p>\n

We cannot take a leap of faith on someone whose biography is a mystery.<\/p>\n

Fortunately, we don\u2019t need to. The current lieutenant governor\u2019s record in business, politics and diplomacy is public and extensive. There are few blanks to fill in. The challenges awaiting the next treasurer require a tested policy and economic operator.<\/p>\n

Bay Area voters should elect Eleni Kounalakis.<\/p>\n

To read our endorsements in other critical races on Bay Area voters\u2019 June 2 ballots, please visit mercurynews.com\/opinion\/endorsements\/.<\/em><\/p>\n

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Fiona Ma’s successor should expect to inherit the most financially volatile environment since the Great Recession<\/p>\n","protected":false},"author":1,"featured_media":399,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion"],"yoast_head":"\nEndorsement: Elect Eleni Kounalakis California\u2019s next treasurer - Next City Digest<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nextcitydigest.com\/?p=400\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Endorsement: Elect Eleni Kounalakis California\u2019s next treasurer - Next City Digest\" \/>\n<meta property=\"og:description\" content=\"Fiona Ma's successor should expect to inherit the most financially volatile environment since the Great Recession\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nextcitydigest.com\/?p=400\" \/>\n<meta property=\"og:site_name\" content=\"Next City Digest\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-24T19:40:08+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=400#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=400\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/#\\\/schema\\\/person\\\/13065d40d633843429ac57d4e5c06f9b\"},\"headline\":\"Endorsement: Elect Eleni Kounalakis California\u2019s next treasurer\",\"datePublished\":\"2026-05-24T19:40:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=400\"},\"wordCount\":948,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=400#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/nextcitydigest.com\\\/wp-content\\\/uploads\\\/2026\\\/05\\\/4c9fb7f4c6f524fd3a0641a4f0412a39.webp\",\"articleSection\":[\"Opinion\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/nextcitydigest.com\\\/?p=400#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=400\",\"url\":\"https:\\\/\\\/nextcitydigest.com\\\/?p=400\",\"name\":\"Endorsement: Elect Eleni Kounalakis California\u2019s next treasurer - 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