• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FeaturesPolitics

Battle for the soul of the California GOP

By
Nina Easton
Nina Easton
Down Arrow Button Icon
By
Nina Easton
Nina Easton
Down Arrow Button Icon
June 2, 2014, 11:02 AM ET

Neel Kashkari 2014

The Republican Party’s entwined futures—bleak and hopeful—washes up on the shores of California tomorrow when primary polls close.

The moderate, business-backed wing of the GOP has tried to push back against Tea Party candidates this primary season, with middling results. And it will face a pronounced setback if Bush Treasury official Neel Kashkari loses to Minuteman Project founder Tim Donnelly in the governor’s primary.

Kashkari is a son of Indian immigrants and social liberal who preaches economic opportunity in a state with the nation’s fourth highest unemployment rate.  State Assemblyman Donnelly has likened his desired campaign against illegal immigration to “warfare”—and appeals to the right with divisive proclamations like “I want my state back!”

Polls are mixed on which candidate will face Governor Jerry Brown in the fall.

Pablo Kleinman

Farther down the ballot, congressional GOP candidate Pablo Kleinman, facing socially conservative opponent Mark Reed in a Southern California district, stands a good chance of being tapped as the candidate to face  Democratic incumbent Brad Sherman in the fall. (Predicting races in California is especially difficult because of an open primary system in which the top two vote-getters, regardless of party, face off in the general election. )

If the Republican Party has a prayer of closing its  gap with Democrats in places like California, it rests on the fate of candidates like Kleinman—fiscally conservative and socially liberal, a Spanish-speaking fixture on Univision radio and high-tech entrepreneur to boot.

Kleinman, who immigrated to California from Argentina when he was 13, is a serial tech entrepreneur whose latest venture, Urbita, is a network of local search and travel-related online services. That’s a background with the potential for wide appeal in the start-up state. But his understanding of Hispanic voters—who make up a third of California adults though a smaller share of likely voters — is even more crucial.

“The reason California is no longer a battle ground state is that we failed to get the Hispanic vote,” Kleinman says of the Republican Party. “If we can’t lure a third of Hispanics, then we can’t be competitive ever again.”

While they tend to be Democrats, many Hispanics are politically conservative—and the breakout is just about even for those who describe themselves as “liberal,” “middle of the road,” and “conservative,” according to the Public Policy Institute of California.

Kleinman appeals to the large block of Hispanic voters in his San Fernando Valley district by promoting public school choice—so families “don’t have to lie about their address to get into decent schools.” He supports a guest worker program and immigration reform so the nation’s 12 million undocumented residents “can come out of the shadows” (though he says he doesn’t support “amnesty”).

Even if he wins tomorrow, Kleinman faces steep odds against an incumbent Democrat in a district where Republicans are mostly thought to exist alongside Mastadon tusks in the nearby La Brea tar pits.

But what’s interesting is that, despite the party’s record-low standing and gnawing reputation for intolerance, he’s a compelling young candidate who  opted to embrace the GOP underdog brand.  (As a young man in New York, Kleinman fell under the spell of then-New York Mayor Rudy Giuliani, but his loyalty to the GOP was sealed, he says, after pursuing a business degree in France and experiencing European-style socialism.)

Ronald Reagan’s home state long ago lost its Republican footing, with its entire political structure dominated by Democrats. The state hasn’t supported Republican presidential candidates since the 1980s.

MORE Lew: Businesses need to stop looking backward

But that’s exactly what makes it rich territory for a free-market message of economic opportunity. Decades of Democratic control have left a state that residents are fleeing in search of jobs and to escape local fiscal crises—3.4 million Californians have left since 1990.

Businesses are fleeing as well. Texas Gov. Rick Perry likes to brag that he’s lured more than 60 California companies to his state–just since 2012. (According to Fortune 500 rankings released today New York and California are the home to the most Fortune 500 headquarters, with 54 each. Texas boasts 52.)

Kashkari wants to waive income taxes for 10 years for businesses that move to California or build new manufacturing plants there.

Kleinman hails from an industry famous for producing technological disruption. And right now, disruption is exactly what California’s encrusted political establishment could use.

Related Video: California vs. Texas: Which state has the best business perks?

About the Author
By Nina Easton
See full bioRight Arrow Button Icon

Latest in Features

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Features

Meta and YouTube just took a crushing legal blow over tech addiction. At this rehab for addicted teens and adults, it’s treated like heroin
MagazineSocial Media
Meta and YouTube just took a crushing legal blow over tech addiction. At this rehab for addicted teens and adults, it’s treated like heroin
By Kristin StollerMarch 24, 2026
10 days ago
Cursor’s crossroads: The rapid rise, and very uncertain future, of a $30 billion AI startup
MagazineCoding
Cursor’s crossroads: The rapid rise, and very uncertain future, of a $30 billion AI startup
By Allie GarfinkleMarch 21, 2026
13 days ago
For CEOs, it’s time for a wartime mindset
MagazineIran
For CEOs, it’s time for a wartime mindset
By Geoff ColvinMarch 20, 2026
14 days ago
This photograph taken in Le-Perreux-sur-Marne, outside Paris on February 9, 2026 shows undated pictures provided by the US Department of Justice on January 30, 2026 as part of the Jeffrey Epstein files
C-SuiteJeffrey Epstein
How Jeffrey Epstein pulled Bill Gates and Microsoft into a web of sex, money, and secrets
By Eva Roytburg and Jim EdwardsMarch 10, 2026
24 days ago
Target’s new CEO lays out a $6 billion plan to revive ‘Tarzhay’
C-SuiteRetail
Target’s new CEO lays out a $6 billion plan to revive ‘Tarzhay’
By Phil WahbaMarch 6, 2026
28 days ago
Exclusive: How Becky Kennedy built a leadership playbook for parenting—and a $34-million-a-year business
SuccessMost Powerful Women
Exclusive: How Becky Kennedy built a leadership playbook for parenting—and a $34-million-a-year business
By Claire ZillmanFebruary 27, 2026
1 month ago

Most Popular

Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
Real Estate
Gen Z fled San Francisco for Texas and Florida. Now they’re turning ‘welcomer cities’ into the next big tech towns
By Fortune EditorsApril 2, 2026
1 day ago
Major 4-day workweek study suggests that when we work 5 days we spend one doing basically nothing
Success
Major 4-day workweek study suggests that when we work 5 days we spend one doing basically nothing
By Fortune EditorsApril 2, 2026
17 hours ago
Current price of gold as of April 1, 2026
Personal Finance
Current price of gold as of April 1, 2026
By Fortune EditorsApril 1, 2026
2 days ago
Current price of oil as of April 2, 2026
Personal Finance
Current price of oil as of April 2, 2026
By Fortune EditorsApril 2, 2026
18 hours ago
Paul Krugman smacks down Trump speech with argument that $4 gas is ‘less than half’ of the Hormuz hit. Here’s what he’s talking about
Economy
Paul Krugman smacks down Trump speech with argument that $4 gas is ‘less than half’ of the Hormuz hit. Here’s what he’s talking about
By Fortune EditorsApril 2, 2026
13 hours ago
The tax escape map: Billionaires are bolting for Florida from the West Coast and taking billions in tax revenue with them
Real Estate
The tax escape map: Billionaires are bolting for Florida from the West Coast and taking billions in tax revenue with them
By Fortune EditorsApril 2, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.