A group of California’s elite is reportedly initiating a substantial endowment fund, reaching into nine figures, to counter the state’s political maneuvers, particularly the proposed 5% wealth tax targeting billionaires. This tax has already prompted a significant exodus of the ultra-wealthy from Silicon Valley.

Leading the charge is Maria Davidson, who shared with Bloomberg that the initiative was born from a shared concern about California’s future among her circle. Davidson, the founder of the construction startup Kojo, explained, “We’re in preliminary discussions with individuals who are genuinely invested in the future of California.”

Among those involved are notable figures such as Neil Mehta, the founder of Greenbacks Capital, and Jon Lonsdale, co-founder of Palantir Technologies Inc. These influential entrepreneurs, along with others, are actively supporting the project, known as California Renewal, as reported by the outlet.

“There is significant support for this initiative from both sides of the political spectrum,” Lonsdale remarked to Bloomberg. “Our collective goal is to establish a more balanced political environment, where sensible, moderate policies prevail, focusing on affordability and growth for California.”

The fund aims to level the playing field against the financial and influential reach possessed by labor unions throughout the state.

The idea behind the fund would be to counter what labor unions have at their disposal, in terms of money and a strong presence throughout the state. 

California Renewal is being marketed to the state’s wealthiest residents as an endowment, according to the paper, with the goal of influencing public policy, the state’s elections, and providing financial contributions to political campaigns for an indefinite period of time.

The target goal for the fund is $100 million this year, the paper reported, with the ultimate goal of reaching up to $1 billion.

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While its unclear how much, if any money has been raised so far, the idea gained steam over a ballot measure proposal being pushed by one of the state’s most powerful health care union to impose a 5% wealth tax on California’s billionaires.

Garry Tan, chief executive officer of the startup accelerator Y Combinator, told the outlet that he is “definitely” donating to the cause — although, he didn’t say how much. 

“I think it’s great,” Tan said. “We need to think about politics more like we think about investing.”

If the fund succeeds, it would be a game changer for California politics, providing a vehicle to push back on unions and liberal state policies backed by a Democratic supermajority in the state legislature. 

But, it won’t be easy — the move is already facing opposition. 

Lorena Gonzalez, president of the California Labor Federation, told Bloomberg her support system of more than 2 million workers, could push for new taxes targeting endowments. 

“You may be able to buy one election or one congressman or one governor even,” said Gonzalez. “You’re not going to buy California.”

A majority of California voters fear the billionaire tax will force businesses to flee the state — as the controversial proposal has only reached 25% of the signatures it needs to make the ballot.

In a poll this week, 64% of respondents were worried that the 5% wealth tax on billionaires will drive businesses out of the state.

FIfty-four percent were worried about them leaving, while 59% were concerned about the loss of future tax revenue as wealthy taxpayers flee.

Sixty-four percent were worried about future tax hikes on the middle class.