California's economic landscape is shifting—and CPAs are on the front lines. In a conversation during the recent CalCPA Council meeting, California Treasurer and CalCPA member Fiona Ma shared her thoughts with CalCPA Chair Jillian Phan on the state's finances, business climate, workforce development and what financial professionals should keep an eye on.

Q: As you walk the halls of the Capitol, what are you hearing about the current state of California’s economy—and what should CPAs take away from that?

“We are doing better than expected in terms of revenues, mostly from personal income tax and corporation taxes,” Ma said, while also noting that sales tax revenues remain relatively flat. For CPAs, that mix matters. California’s heavy reliance on high earners, stock options and corporate performance means revenue volatility remains a constant risk factor for both state budgeting and client planning.

Ma added that consumer behavior is shifting. “People are just not that comfortable,” she said, pointing to rising costs of living, uncertainty around tariffs and insurance availability, and reduced discretionary spending.

For CPAs advising businesses and households alike, this signals continued caution—especially in forecasting, cash flow planning and investment decisions.

Q: California is often described as unfriendly to business. How accurate is that—and how should CPAs frame this conversation with clients?

“I think it’s business friendly. It’s just expensive and difficult with the bureaucracies,” Ma acknowledged. Time delays, particularly around permitting, are a recurring concern as “it’ll take nine months to get a permit in Texas. It’ll take two and a half years here. And time is money.”

For CPAs and firm leaders, this reality reinforces the importance of proactive advisory services. Clients weighing expansion, relocation or capital investments need clear modeling of regulatory timelines, carrying costs and opportunity costs.

Acknowledging the friction points, Ma also discussed outmigration as businesses and high-net-worth individuals are evaluating their options—and CPAs have a unique seat at the table.

Her message to financial professionals: the anecdotal data you gather every tax season — who's restructuring, who's relocating, which clients are thinking about leaving — is the kind of ground-level intelligence that policymakers need to hear. "You need to let them know," she said.

Q: What role can CPAs play in shaping better outcomes at the policy level?

Ma encouraged CPAs to communicate directly with legislators about what they see on the ground. “Don’t assume that they know what is going on in the field,” she said.

From tax migration to delayed permits to client frustration with government responsiveness, CPAs are often the first to see trends emerge. Sharing that intelligence—clearly and consistently—can influence policy discussions and improve long-term business conditions.

Q: How does California balance regulation, innovation and economic growth?

“We’re highly dependent on personal income tax, corporation tax and sales tax—that’s 90 percent of our general fund,” Ma said. At the same time, housing affordability and workforce challenges continue to strain the system.

Ma emphasized the growing divide between high earners and minimum-wage workers, warning that “we’re losing the middle class if we don’t start thinking and figuring it out.” For CPAs, this creates both challenge and opportunity: advising employers on compensation strategies, helping individuals navigate housing and tax credits, and guiding firms through compliance without stifling growth.

Q: What advice do you have for students and early-career professionals trying to build a future in California?

“Try not to go into high student loan debt,” Ma advised, stressing the importance of savings and early career planning. She highlighted the value of paid internships and programs aligned with CPA licensure requirements, noting how those choices helped her start a business and buy property early.

For firms facing talent shortages, this message reinforces the value of internships, mentorship and early engagement with future CPAs—investments that benefit both the profession and the state’s economy.

Ma also called out what she sees as a structural gap between academia and the private sector. "Business is doing their thing. Academia is doing their thing. They would love to help each other—they just don't know how. No one is creating those formal relationships and partnerships," she said.

Q: As a CPA who went into public service, what role does your license play today?

"Once you let your CPA license lapse, it is too hard to get it back. This is like gold to me,” she said. “I think people value CPAs. They don't understand how many hours we do—like doctors or pilots. Yet we are held to a higher standard."

Ma said she still completes her 80 hours of CPE every two years to maintain her license and emphasized the value of the license professionally and politically.

She noted that her CPA license gave her credibility at every level of government where she has served—on the Board of Equalization and as State Treasurer—and as a data-focused voice in a policy world that often prioritizes narrative over numbers. "I always want to see the data. Sometimes policy people don't want to hear that. But you've got to know how much it costs," she said.