CA fails audit of federal programs, 66% of COVID unemployment benefits in question

California did not materially comply with the requirements for seven of the 22 federal programs the state auditor examined, including “pervasive” noncompliance in its unemployment benefits program, which could put essential federal funding at risk.

“This report concludes that the State did not materially comply with certain requirements for seven of the 22 federal programs or clusters of programs (federal programs) MGO audited, including one program for which the noncompliance was pervasive,” wrote Deputy State Auditor Linus Li. “Additionally, although MGO concluded that the State materially complied with requirements for the remaining federal programs it audited, the State continues to experience certain deficiencies in its accounting and administrative practices that affect its internal controls over compliance with federal requirements.”

The audit found that even in 2023 — years after the state made $55 billion in fraudulent COVID lockdown-era benefits payments — the state likely made “potentially ineligible payments” of nearly $200 million. The audit also found that of 138 pandemic unemployment assistance claimants that were tested, 91, or 66%, had verification issues.

“While Gavin Newsom chases the national spotlight, Californians are left with an administration that can’t accomplish the basic functions of government,” said California State Assembly Minority Leader James Gallagher to The Center Square. “The federal government is right to take a look at this spending and decide if it’s appropriate to keep throwing resources at an administration that treats it like Monopoly money.”

Last year, the state’s Legislative Analyst’s Office said the state’s unemployment fund runs a structural deficit of $2 billion per year, beyond the $20 billion debt and $1 billion in annual interest payments to the federal government. Because the unemployment fund is paid for by payroll taxes on employers and their employees, the LAO said payroll taxes would need to rise from $42 per employee making $46,800 or more per year, to $889.20, or over 21 times higher than the existing base payroll tax.

spot_img
spot_img

Hot this week

African and Caribbean Nations Call for Reparations for Slave Trade, Propose Global Fund

Nations across Africa and the Caribbean, deeply impacted by...

Sports betting expert offers advice on paying taxes for gambling winnings

(The Center Square) – Tax season is underway, and...

Health care company agrees to pay $22.5 million to settle claims of over billing

A health care company agreed to pay nearly $22.5...

Entertainment district benefits don’t outweigh the cost, economists say

(The Center Square) — Weeks later, after more details...

Business association ‘disappointed’ by WA L&I’s proposed workers comp rate hike

(The Center Square) – The Association of Washington Business...

Wisconsin unemployment remains 3.2% during business, consumer uncertainty

(The Center Square) – Wisconsin’s unemployment rate remained at...

Virginia Republican lawmaker urges Congress to protect Medicaid amid budget talks

(The Center Square) – A Virginia lawmaker joined a...

Texas House overwhelmingly passes Teacher Bill of Rights bill

(The Center Square) – The Texas House overwhelmingly passed...

Group urges Tennessee GOP to reject ‘DEI dollars’ from hospital association

(The Center Square) – Consumers’ Research has a message...

Group puts Ohio’s economic outlook as average

(The Center Square) – Ohio ranked exactly average in...

$25M proposed to cover weight loss drugs for state employees

(The Center Square) – The budget passed by the...

Landry addresses second regular session, promises insurance reform

(The Center Square) – Louisiana Gov. Jeff Landry opened...

More like this
Related

Wisconsin unemployment remains 3.2% during business, consumer uncertainty

(The Center Square) – Wisconsin’s unemployment rate remained at...

Virginia Republican lawmaker urges Congress to protect Medicaid amid budget talks

(The Center Square) – A Virginia lawmaker joined a...

Texas House overwhelmingly passes Teacher Bill of Rights bill

(The Center Square) – The Texas House overwhelmingly passed...