CALIFORNIA – Governor Gavin Newsom announced, July 15, the California Breakthrough Project, partnering with tech leaders to improve government operations.

The group – including leaders from blockchain technology companies Coinbase, Moonpay and Ripple executive chair Chris Larsen, will work with state agencies to find ways to streamline and improve government operations.

Newsom’s announcement didn’t specify how blockchain would be used, but a prior executive order directs state agencies to explore public-serving blockchain pilots and deployment in state operations.

Executive order doesn’t directly mention workforce cuts

Newsom also signed an executive order requiring all state agencies to adopt efficiency measures and involve staff in the effort.

Although the executive order mentions retraining, workforce cuts may still be likely due to an increase in automation. 

Key takeaways from Newsom’s executive order on government efficiency and innovation:

• Streamlining hiring: CalHR and the State Personnel Board will propose ways to modernize recruitment and simplify exams by August 15, 2025.

• Simplifying IT: California will explore shared contracts and launch a statewide tech marketplace to cut costs.

• Optimizing procurement: The Department of General Services (DGS) will review contracts to speed approval and cut red tape.

• Agency efficiency challenge: Each agency must propose one low or no cost improvement within 90 days.

• Engaging workforce: Data Innovation Office will launch pilots via its Engaged California platform and create an Innovation Fellows Program to help staff identify and solve efficiency issues.

32 of the world’s top 50 AI companies are in California

Other members of the Breakthrough Project are AME Cloud Ventures, Anduril, Instacart, Scopely, Snap Inc., investor Asheesh Birla, Ron Conway (founder of SV Angel), Jeff Lawson (co-founder and former CEO of Twilio), Jen Pahlka (author of Recoding America), and Jason Wheeler (former CFO of Tesla).

The news release noted that artificial intelligence is already changing the world, and California aims to help shape its future.

The state is home to 32 of the world’s top 50 AI companies, reflecting its ongoing role in the tech industry.

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