00:00I'd like him to address the issue that he's created, which is the spike in gasoline because of this war
00:07in Iran,
00:08which seems now to be, even for him, a distraction.
00:11He seems now more interested in what's happening in North Korea as a way to distract against the errant of
00:17this terrible decision.
00:20So I think fundamentally he needs to address the Strait of Ramoos.
00:23He wants to address the issue of gas prices, but we'll take a look at the details of this new
00:29proposal,
00:30but at the core of the issue.
00:31The EPA just announced that they are intending to flood California and other states with gasoline by tweaking the allowances
00:41for E10 gasoline.
00:43They're describing this as an emergency waiver that's intended to offset gas prices.
00:47I wanted to see if you had any reaction to that, if that's something that you support.
00:51I don't have any – we're already working, as you know, on the E15 issue here in the state of
00:56California,
00:56so familiar territory in that respect, which we should legislatively be addressing just in the next matter of weeks.
01:03As it relates to the larger issue of gas, I'd like him to address the issue that he's created,
01:08which is the spike in gasoline because of this war in Iran, which seems now to be, even for him,
01:15a distraction.
01:16He seems now more interested in what's happening in North Korea as a way to distract against the errant of
01:22this terrible decision.
01:25So I think fundamentally he needs to address the straighter moves.
01:29He wants to address the issue of gas prices, but, you know, we'll take a look at the details of
01:34this new proposal.
01:35But at the core of the issue, the problem, that's one that is represented every morning when he's shaving.
01:41I have a question for Brad.
01:44Do it. Do it.
01:45Hi. I'm Monica, Matt, an ABC7.
01:48With these investment accounts being through 2028, are there already conversations?
01:53Like, do you think it could be a given in the next administration, depending on who's president?
01:56Very welcome to this guy.
01:57You never know.
01:59So I'd say two things.
02:00First, the accounts are permanent, so they don't have to be reauthorized.
02:06The accounts will be created in 29 and 30 and 31.
02:09The only thing that has to be reauthorized is the amount of seed capital coming from the U.S. Treasury.
02:15So to put that in perspective, there are 3.7 million kids born in America every year.
02:20$1,000 each, that's $3.7 billion.
02:24In Washington, they call that budget dust.
02:26It's about the cost of a single Patriot missile battery to make every child in America an owner from birth
02:33in the upside of America.
02:35So as the governor said, this has never been a partisan issue for me.
02:40We have broad bipartisan support in the House, in the Senate, among the potential presidential contenders.
02:49I think this is day one.
02:50People will optimize it.
02:52It will evolve and change over time.
02:53I have no doubt that the dollars will be reauthorized post-2028.
02:57Some of those legislative offerings are already being put forth in the House and the Senate.
03:03People who want to make the funding permanent, people who may want to increase the funding, et cetera.
03:08I'll leave that to them.
03:09It's above my pay grade.
03:10But I have very, very high confidence.
03:13In fact, we don't need legislative reauthorization for the accounts.
03:16And I have very, very high confidence that the $1,000 seed from the federal government will continue.
03:21And I think what's more likely is we now see momentum in about 25 states across the country where they're
03:27looking at their kids' programs and figuring out how they can consolidate dollars into these accounts.
03:32You know, the truth is, as you mentioned, we've got a lot of accounts.
03:36And a lot of these accounts have too little money, too hard to get parents opening each of these accounts.
03:41If we can consolidate the accounts, get it compounding in the upside of the country and make it easy for
03:45parents and companies and philanthropists to add those accounts, I think that's going to be what's best on behalf of
03:50our citizens.
03:51But it should be table stakes going forward.
03:53I mean, this is too important.
03:55And it's the issue of our time, the imbalance between rich and poor.
03:59And it's not just income inequality.
04:01It's wealth inequality.
04:02And you've got to begin at the beginning.
04:03There's the pre-distribution framework or the redistribution framework.
04:07It may be a little bit of both.
04:08But the pre-distribution gets under-resourced, literally and figuratively.
04:12And that's why I think this is so foundational, literally and figuratively.
04:16And let me just say, on behalf of the governor, first, he's the first Democratic governor in the country to
04:21step forward so clearly and to endorse these accounts and Trump accounts as such a critical part of closing that
04:29wealth gap.
04:30Number two, as a business person in the state of California, he's been unequivocal and clear.
04:36We have to narrow the wealth gap in the country, which is the whole purpose behind the Invest America Act.
04:43But at the same time, we can't demonize success.
04:45We can't demonize Micron.
04:47We can't demonize our founders.
04:49We can't demonize the people who provide the economic engine, the abundance that then we can use to lift up
04:56those most in need around us.
04:58This is about getting every child in America, every child in California in the game from the start.
05:04You know, Warren Buffett said, start with a really small snowball and a really long hill.
05:09And there's no longer hill than starting on day one of your life, right?
05:13The power of compounding, the power of the California economy, the power of the national economy, working on behalf of
05:19every kid, getting every kid in the game.
05:22I'll finish with this.
05:23I know I'm filibustering.
05:24But you know this story.
05:25I live in Woodside, California, 125-year-old small farmhouse, small kitchen table where we have breakfast and dinner every
05:33evening, four seats around the table.
05:34And I'm sitting there with my two boys, and we're coming out of COVID.
05:38And I show my sons, Lincoln and Jack, their investment accounts that I had started for them at birth.
05:43It was a tough time, late 2020.
05:47Some people were doing great, but the people who I grew up with in rural Indiana, they weren't doing great,
05:52right?
05:52They figured, like, here you go again.
05:54Capital markets are doing great.
05:56The rest of us are losing our jobs.
05:57We're left out.
05:58We're not on this train.
05:59And I show my kids their account.
06:00To Lincoln's credit, who was then 13, said, Dad, this is great, but what about everybody else?
06:06What about everybody else?
06:07Why doesn't every kid have an account like this?
06:10And I said, I've had an idea for a long time, $1,000 for every kid in America.
06:14And it was literally at that kitchen table that we made the call that we're going to try to get
06:19this done.
06:20Never thought in a billion years that we'd get it passed.
06:22It's now the law of the land, and we're just getting started.
06:25I have a question about low income family.
06:28The hesitancy to open their account, because they hear about if they have an account, when the kids in college,
06:34they were affecting their scholarship.
06:36So there was no one to open it.
06:39Yeah, so, you know, I view that as a high-class problem, that if, you know, a needs-based scholarship,
06:47this won't affect.
06:48In fact, in the legislation, it's very explicit that this cannot offset needs-based contributions from the federal government.
06:56You know, if it's a, you know, if the kid has $50,000 at the age of 18, they can
07:01only use 25% of that toward going to college.
07:05The rest rolls over into an IRA.
07:07So I don't think it's going to impact their ability to get scholarships.
07:10Certainly not going to impact their ability to get federal student loans, because it's explicitly excluded in the legislation.
07:18Thank you, guys.
07:19Oh, yeah.
07:19No, sorry.
07:21Cal kids are 1 million milestone today.
07:23Yeah.
07:24Eligible.
07:245.5 million.
07:25Yeah.
07:26Is that correct?
07:26And so you'd like to see it?
07:28We just need to close that gap, and we're out there promoting, and that's a big part of what today's
07:33about as well.
07:33And we've got new partnerships with our community colleges, new partnerships with the private sector.
07:37We'll be rolling out a lot of other creative ideas that you guys have initiated, and perhaps you just fill
07:43in the final detailed points.
07:44Happy to do that.
07:45So for Cal kids, we start our Ready, Set, Claim, Ground game in schools this year.
07:50We are asking all the county offices of education to put forth a champion in their districts to be able
07:57to connect students with their accounts.
08:00We hit 1 million today.
08:02Our plan is to just charge through this next school year, and then as our babies come online in kindergarten,
08:10start seeming them in.
08:12Within three years, we'll have universal.
08:15Every kid in school will have a Cal kids account.
08:17They'll also eventually have Trump accounts and have that eligibility.
08:21So it's very important for us to make sure that kids get what they're eligible for.
08:25They sign up for it.
08:26They know about it.
08:27They're talking about it.
08:28There's kitchen table talks, incredibly important.
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