EDITORIAL: Eleni Kounalakis, California treasurer candidate, answers Bay Area News Group's primary questionnaire

May 22-Getting your Trinity Audio player ready...

Ahead of the June primary election, the Bay Area News Group compiled a list of questions to pose to the California insurance commissioner candidates. You can find the full questionnaire below. Questionnaires may have been edited for spelling, grammar and length.

You can read our endorsement in this race here.

To read our endorsements for other important Bay Area races click here.

Name: Eleni KounalakisCurrent job title: Lieutenant Governor of CaliforniaDate of birth: March 3, 1966

Political party affiliation: DemocratOther political positions held: Lieutenant Governor of California (2018 - 2026)City where you reside: San Francisco

What are the top three problems you're seeking to solve if elected?

1. Expanding affordable housing and investing in infrastructure: I will focus on modernizing the Low-Income Housing Tax Credit program, streamlining bond financing and accelerating the construction of affordable housing statewide.

2. Protecting retirement security and strengthening public pension systems: Protecting and strengthening CalPERS and CalSTRS is critical to the retirement security of millions of public employees.

3. Investing in the financial future of California's children and families: I will strengthen and expand programs like CalSavers, CalKIDS, ScholarShare 529 and CalABLE.

Why are you uniquely qualified to solve these problems?

I am the only candidate in this race with deep experience in statewide executive leadership, public finance and housing development. My background also includes global economic leadership as U.S. Ambassador and ongoing work as the governor's representative for international affairs and trade. The state treasurer manages trillions of transactions and billions of dollars in bonds that directly impact housing, infrastructure, pensions and affordability, and sits on the boards of CalPERS and CalSTRS. As a businesswoman, California's representative for international trade and current constitutional officer, I believe I am the most qualified candidate running for this office.

What differentiates you from your most serious competitors for this seat?

My campaign is built on a broad, proven statewide coalition and a disciplined, well-funded strategy to win. I bring strong statewide name recognition, a record of results and the support of leaders across California, including Gov. Newsom, State Treasurer Fiona Ma, State Controller Malia Cohen and Attorney General Rob Bonta. With significant resources on hand, our campaign is focused on turning out Democrats and working-class voters in every region of the state. The strength of my candidacy is rooted in deep experience with finance, housing and public investment at a moment when Californians are demanding competence, stability and results.

What did Fiona Ma do successfully as treasurer?

As treasurer, Fiona Ma helped strengthen California's fiscal foundation while expanding opportunity. She secured credit rating upgrades from Moody's and S&P, lowering borrowing costs for schools and local governments. She made the state's housing finance programs more efficient, streamlining tax credit and bond allocations to help finance tens of thousands of affordable homes. She also expanded programs like CalABLE and launched CalKIDS to support families saving for college. During the COVID-19 crisis, she provided steady leadership to stabilize municipal bond markets and ensure communities could continue investing in essential infrastructure and services.

What did Fiona Ma fail to do as treasurer?

While Fiona Ma made important progress, key challenges remain. California still faces a severe housing shortage, and the state's financing tools - while improved - have not kept pace with the scale and cost of building affordable housing. The allocation process for tax credits and bonds can still be complex and slow, limiting how quickly projects move forward. Additionally, despite strong credit ratings, California continues to carry significant long-term liabilities and faces ongoing budget volatility tied to capital gains. There is more work to do to modernize financing tools, reduce costs and better align investments with long-term economic stability.

The treasurer oversees the issuance of billions of dollars in bonds for infrastructure, housing and public projects. What principles would guide your decisions about when California should borrow, how much debt the state can responsibly carry, and how to keep borrowing costs low for taxpayers?

California currently holds strong AA-level credit ratings, and my goal as treasurer would be to protect and improve those ratings. I would time issuances strategically, standardize bond structures and refinance when advantageous to reduce long-term costs. I will also strengthen coordination with local issuers and closely monitor market conditions. I will maintain conservative debt ratios to protect and improve our credit profile. My measurable goal is to keep the state's debt-service-to-General Fund revenue ratio below 6% - ensuring California can meet its obligations while preserving and strengthening our credit ratings, which directly lowers borrowing costs for taxpayers.

California faces massive infrastructure demands - from water systems and transportation to wildfire mitigation and climate resilience. What financing strategies or public-private partnerships would you pursue to fund these projects without placing excessive burdens on taxpayers?

Central to my vision is building more: more housing, more hospitals, more clean energy and more resilient infrastructure. From modernizing the electrical grid and expanding battery storage to building solar, wind and geothermal infrastructure, as well as transportation infrastructure, it is essential to deliver these projects safely, on time and to the highest standard. As treasurer, I will use the state's financial tools, direct bond financing, financing authorities, procurement policies and pension fund investments to meet infrastructure goals and create family-sustaining careers.

The treasurer manages several financing authorities that support affordable housing and small business lending. When and how would you expand access to capital, particularly for housing development?

We need to focus on certainty, speed and consistency. I support expanding by-right approvals for projects that meet zoning and affordability standards, strengthening enforcement of existing streamlining laws, limiting duplicative environmental reviews and creating clearer timelines for permits and inspections. From the treasurer's office, I will also prioritize financing programs that reward jurisdictions that deliver housing and help de-risk projects, so capital can flow more quickly. Time is money in housing, and delays directly translate into higher rents.

The treasurer helps oversee investment of large public funds, including bond proceeds and programs that support retirement and college savings. How should California balance financial returns with policy priorities such as climate risk, social responsibility and economic development?

I would tie financing decisions to measurable outcomes, such as housing units produced or projects completed on time. I spent over 20 years running our family business in housing development and have the experience to ensure taxpayer dollars are used responsibly, efficiently and deliver results. I would use every financing authority at my disposal to balance financial returns with policy outcomes. I am committed to a financing agenda that reflects the lived realities of working families, students, seniors and extremely low-income households while working within California's budget. The state shouldn't ask working Californians to shoulder the burden of our progression.

Are there causes for which you're willing to sacrifice return on investment on state employee retirement funds? If so, which and why?

As a fiduciary, my top responsibility is protecting the long-term retirement security of public employees, and I do not support sacrificing returns for symbolic purposes. However, responsible investing and strong returns go hand in hand. Factors like climate risk, labor practices and corporate governance directly impact long-term performance. Integrating these considerations is not about sacrificing ROI, it's about managing risk and strengthening the portfolio. In limited cases where an investment poses 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.

Are there specific companies, industries or countries in which you oppose investing? Please explain.

As a former U.S. ambassador, I have seen firsthand how geopolitical instability, corruption and weak rule of law can undermine markets. That experience informs my view that international investments must be carefully evaluated for political risk, sanctions exposure and human rights concerns. We should also be mindful of industries facing structural decline, such as certain fossil fuel assets, as well as companies with persistent labor violations or weak governance. Where possible, I support active engagement to improve corporate behavior - but when risks are significant and long-term, reducing exposure is the responsible course.

In what ways would Bay Area voters particularly benefit from your leadership as treasurer?

I will focus on expanding affordable housing by strengthening tax credit and bond programs, especially for projects near jobs and transit. I will also work to lower borrowing costs for local governments so they can invest in transportation, climate resilience and essential infrastructure. Just as important, I will protect pensions and maintain strong credit ratings, ensuring the Bay Area continues to attract investment, create jobs and remain a place where families can afford to live and thrive.

What more should our editorial board know about why you're the best candidate for state treasurer?

As California's lieutenant governor, I serve on the boards of the University of California, California State University and the community colleges, giving me an unmatched understanding of the fiscal, workforce and infrastructure needs of our public education systems. While on these boards, I have helped oversee major capital planning and long-term budget decisions that directly affect students, faculty and working families. I have firsthand experience financing and building housing and infrastructure across California, giving me a practical understanding of how capital markets, public financing tools and local land-use policies affect housing delivery in the real world.

Copyright 2026 Tribune Content Agency. All Rights Reserved.

This story was originally published May 22, 2026 at 5:43 PM.