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Friday, May 8, 2026

State of the State



By Howard Fine

Gov. Arnold Schwarzenegger is about to get on the housing bandwagon with a major initiative next year.

Sunne Wright McPeak, Schwarz-enegger’s secretary for Business Transportation and Housing, said the governor intends to change state law to require each city and county to come up with plans to provide adequate housing for its residents.

“If we do not do this, the consequences will be very serious. Not only will we not provide decent shelter for all California residents, but we will be crippling our competitive advantage,” said McPeak, who recenctly spoke to the Valley Industry and Commerce Association in Los Angeles. “Adequate housing makes the difference on whether or not employers decide to keep their workforce here or go elsewhere.”

McPeak did not say whether the state would earmark any more money to help cities and counties boost their housing. She also said that Schwarzenegger intends to pursue reform of the landmark California Environmental Quality Act, the law that requires environmental impact reports on large construction projects.

“When CEQA was passed in the 1970s, it was well-intentioned, but it’s so misused now,” she said. “It’s time to tackle this and see how our resources that are now spent on environmental impact reports and lawsuits could actually go towards positive actions to protect the environment.”

Fine is a staff reporter with the Los Angeles Business Journal.

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