A comprehensive report from the California State Auditor has brought to light significant financial mismanagement across multiple state agencies, which has led to the mishandling or loss of over $5 million in taxpayer funds during the tenure of Governor Gavin Newsom. This revelation underscores the challenges of oversight and fiscal responsibility within the state government.
The Employment Development Department (EDD) is at the forefront of the reported losses, with at least $4.6 million being spent on service fees for thousands of inactive cell phones over the past half-decade. In response to this discovery, the EDD has initiated a new system to deactivate lines that have been unused for more than three months, aiming to prevent further waste of public funds.
Additional findings from the audit include the California Air Resources Board overpaying a former employee close to $200,000 due to miscalculations in tracking leave balances. Similarly, the Department of Veterans Affairs failed to report over $400,000 in taxable housing benefits, and the Department of Alcoholic Beverage Control was implicated in the misuse of state vehicles.
The report's findings have drawn criticism from various quarters, emphasizing the need for stringent accountability. Susan Shelley of the Howard Jarvis Taxpayers Association expressed frustration over the casual attitude of California agencies towards fiscal responsibility. David Kline from the California Taxpayers Association highlighted the gravity of the situation, noting that the state is facing a projected $18 billion deficit next year.
The audit has also brought to the surface systemic high-risk issues, such as delayed financial reporting by the Department of Finance, ongoing difficulties with Medi-Cal eligibility at the Department of Health Care Services, and cybersecurity vulnerabilities at the California Department of Technology. Furthermore, the state's water infrastructure has been flagged as a critical concern, with nearly 50 dams rated as extremely high hazard and in less than satisfactory condition.
Political commentator Carl DeMaio has extended the scope of concern to include what he alleges as widespread welfare and unemployment fraud under Newsom's administration. DeMaio asserts that the scale of misconduct overshadows that of other states and argues that small businesses are unfairly shouldering the financial load through increased payroll taxes.
While the auditor's report does not directly attribute blame to Governor Newsom, it emphasizes that these lapses occurred under his administration and calls for reinforced oversight. Recommendations include the tightening of spending controls, improvement of reporting systems, and enhanced monitoring of high-risk agencies to ensure the prudent management of taxpayer dollars.
As the state grapples with these inefficiencies, lawmakers and executive leadership are under increasing pressure to enact reforms that will protect public resources and guarantee the delivery of essential services to Californians. The findings have received bipartisan acknowledgment of their severity, with both Democratic and Republican state legislators recognizing the inexcusability of the losses and the necessity for corrective action.
