Lt. Gov. Eleni Kounalakis, who is running for governor in 2026, has pledged to put some of her extensive property investments into a blind trust if elected. This commitment comes after inquiries about potential conflicts of interest due to her ownership of downtown Sacramento office buildings with tenants that have business before the state. Kounalakis has not specified which assets would be placed in the trust or how conflicts of interest would be determined. Her campaign declined to provide further details about her plans.
California conflict of interest rules bar public officials from making decisions that could affect their finances, with exceptions if the impact on their interests is indistinguishable from the public’s. Kounalakis’ husband is a director in the family real estate business, and she herself has significant real estate holdings.
Kounalakis earns millions annually from her investments, including office buildings and agricultural land, according to financial disclosures. As lieutenant governor, she has not placed these assets in a blind trust. Experts advise that she should distance herself from these investments to avoid potential conflicts of interest, especially if elected governor and in a position to influence where state agencies lease offices.
Overall, concerns about conflicts of interest center on her financial ties to organizations with business before the state more than her tenants, as they can use other avenues to influence decision-making. Kounalakis’ response to potential conflicts has been more transparent than simply dismissing concerns.
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