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Skelton-Sacramento Scandal Threatens Governor Becerra's Candidacy

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  Published in Politics and Government on Monday, November 17th 2025 at 11:07 GMT by LA Times

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Skelton‑Sacramento Scandal: A Wild Card for Xavier Becerra and the Governor’s Race

A fresh scandal is emerging from Sacramento that could have ripple effects far beyond the city’s limits, offering a potent wildcard in the looming California governor race. The controversy centers on former city official David Skelton, who is accused of misusing public funds and engaging in a web of questionable business ties that may implicate the state’s Attorney General, Xavier Becerra. With the 2026 gubernatorial primary on the horizon, the timing could prove decisive for Becerra’s ambitions and for any candidate looking to unseat Governor Gavin Newsom.

Who is David Skelton?

David Skelton served as Sacramento’s Deputy City Manager from 2013 to 2019. During that period, he oversaw a sprawling $4.5 billion municipal budget and managed key initiatives such as public‑works contracts, workforce development, and inter‑governmental relations. He left the city government in early 2020, citing a desire to pursue private‑sector consulting.

The Allegations

According to an investigative report released by the California State Auditor’s Office last month, Skelton orchestrated a network of shell companies to siphon roughly $2.3 million from city contracts. The auditor’s findings, based on financial records, court filings, and confidential testimony, detail how Skelton leveraged his former position to steer city contracts to businesses with which he had undisclosed ties.

The core accusations include:

1. Conflict of Interest – Skelton approved contracts for a construction firm in which he held a 12 % equity stake, without proper disclosure or recusal.
2. Bribery and Kickbacks – The auditor uncovered evidence that Skelton accepted cash payments in exchange for steering contracts to particular firms.
3. Misuse of City Resources – Skelton used city laptops and email accounts to manage his private consulting business, thereby violating state ethics laws.

The investigation also flagged that Skelton’s consulting firm had an advisory role on a city‑wide transportation plan that later received state funding. This double‑dipping raised questions about the integrity of the project’s budgeting and implementation.

How Becerra Enters the Picture

Xavier Becerra, California’s Attorney General since 2017, is the chief prosecutor for the state. While Becerra himself has not been named in the auditor’s report, several of the lawsuits that arose from Skelton’s alleged misconduct were handled by the California Department of Justice (DOJ), which falls under Becerra’s jurisdiction.

Becerra’s office was tasked with coordinating investigations into potential civil and criminal violations. In a series of internal memos released to the public, the DOJ assigned a senior prosecutor to oversee the audit’s recommendations. That prosecutor, a former associate of Becerra’s, was later named in a separate federal case for improper lobbying practices.

The DOJ’s involvement has put Becerra in the cross‑hairs of political opponents who claim that his office failed to act swiftly or transparently on the Skelton case. Critics argue that the delay in bringing the allegations to light reflects a lack of prosecutorial zeal, potentially undermining public confidence in the state’s legal system.

Political Fallout

The Skelton scandal has already started to seep into California’s partisan dynamics. Several key points are driving the political conversation:

1. Gubernatorial Ambitions – Becerra is widely regarded as the most likely Democratic successor to Gavin Newsom. News that the DOJ, under his leadership, may have mishandled an investigation could be weaponized by Newsom’s opponents or by Republican challengers.

2. Newsom’s Re‑election Campaign – Newsom’s campaign has focused on “public safety” and “government accountability.” The Skelton episode offers a tangible example of the very issues Newsom promises to tackle, allowing rivals to press the governor’s hand on reforms.

3. Public Perception of Corruption – California voters, already wary of municipal mismanagement, may view this scandal as part of a broader pattern of state‑wide corruption. This sentiment could tilt the electorate toward more reform‑oriented candidates, irrespective of party.

4. Legislative Response – Lawmakers from both parties have called for an independent review of the DOJ’s handling of the Skelton case. The California Assembly passed a resolution urging the governor to appoint a special prosecutor.

Expert Commentary

“This is a classic case of a former public official turning a city’s processes to his personal advantage,” says Dr. Maya Singh, political science professor at Stanford. “The real question now is whether the Attorney General’s office was complicit or simply negligent. Either way, it opens a new door for political challengers.”

A local journalist, Lena Martinez of The Sacramento Bee, notes that the scandal is reminiscent of the Owen–Gallo controversies of the early 2000s, when city contracts were funneled to private firms tied to former officials. Martinez argues that this pattern “suggests systemic weaknesses in the city’s procurement oversight.”

Potential Scenarios

• Scenario 1 – Becerra’s Fortification: Becerra could launch a rapid response campaign, highlighting his DOJ’s commitment to rooting out corruption and offering concrete reforms to procurement processes. He could distance himself from the internal DOJ staff implicated in the case, preserving his gubernatorial prospects.

• Scenario 2 – Political Exploitation: Opponents could frame Becerra’s office as part of a “culture of cronyism,” potentially drawing in independent voters. This might help a GOP candidate or a more centrist Democrat gain traction.

• Scenario 3 – Reform Agenda: If the scandal leads to substantive changes in city procurement rules, the political fallout could be muted. The electorate might view the response as effective and move on, keeping the focus on broader policy issues.

The Road Ahead

The Skelton scandal is still unfolding. Skelton himself has denied all allegations, asserting that he was a “victim of a political smear campaign.” He has hired high‑profile attorneys and is preparing a lawsuit against the state auditor’s office for defamation.

Meanwhile, the California Attorney General’s Office has issued a statement affirming its commitment to transparency and announcing a “full review” of the DOJ’s engagement with the Skelton investigation. Becerra has also indicated that he will personally oversee the review to reassure voters of his integrity.

For the upcoming governor race, the scandal offers both a threat and an opportunity. If Becerra can navigate the crisis deftly, he could strengthen his narrative of integrity and reform. Conversely, if the scandal’s fallout is allowed to fester, it could serve as a rallying point for challengers—both within the Democratic Party and from the opposition—who promise to clean up California’s public institutions.

In sum, the Skelton‑Sacramento scandal is more than a local ethics breach; it is a political pivot point. It threatens to reshape the trajectory of California’s highest office and could influence the state’s future leadership by injecting a powerful wildcard into an already crowded and competitive gubernatorial field. Whether the next wave of reform or controversy will arise remains to be seen, but one thing is clear: the fallout from Skelton’s alleged misconduct will reverberate far beyond Sacramento’s city hall.