DISPATCHES FROM THE BLUE ZONES: Even after near-record returns, California state retirement fund still $166B short.

After The Center Square’s investigation found CalPERS lost 71% of its $468 million investment in a clean energy and technology private equity fund, Assemblyman Carl DeMaio, R-San Diego, a government finance expert and former San Diego city councilman, requested an investigation by the U.S. Department of Justice into the matter; DeMaio’s office reportedly is in ongoing discussions with the Department of Justice, which has confirmed receipt of the request but has previously declined comment to The Center Square on the matter.

In an interview with The Center Square,, DeMaio renewed his calls for greater transparency, more effective management and possible reform of the state’s pension system.

First, regarding CalPERS’ $282 million commitment to HongShan, a Chinese venture capital firm investigated for human rights abuses, DeMaio cautioned against future state investment in China, citing close cooperation between the Chinese Communist Party and corporations – more formally known as the nation’s military-civil fusion strategy.

“Why is CalPERS investing in the Chinese Communist Party? Let’s be very clear, this is not like it’s a private economy that they run there: the Chinese Communist Party is knee deep in almost every single investment that happens, every operation,” DeMaio said.

CalPERS’ investment in HongShan has posted a $7.7 million loss, as of the most recent filings reflecting March 31, 2025.

“High risk management with very little return — and every day that passes that there’s no return, taxpayers are responsible for the assumed rate of return every year, and it compounds,” continued DeMaio.

Does anyone really believe that Sacramento will ever make good on a 12-digit shortfall?

Certainly not while the sheep can flee before they get fleeced: A Wealth Tax Floated in California Has Billionaires Thinking of Leaving.