A recent nonpartisan audit has placed eight California state agencies on a high-risk list for potential waste, fraud, or mismanagement, intensifying debate as labor groups advance a proposed wealth tax aimed at the state’s richest residents.
In a December update, the California State Auditor warned that weaknesses across major programs could expose taxpayers to billions in losses if oversight is not improved. Newly flagged was the Department of Social Services, which administers CalFresh, California’s food assistance program. Federal rule changes could require the state to absorb as much as $2.5 billion annually due to persistent payment error rates.
The audit also reiterated ongoing concerns at the Employment Development Department, where pandemic-era unemployment fraud remains estimated between $20 billion and $32 billion, and at the Department of Health Care Services, which oversees Medi-Cal and reported roughly $4 billion in questionable payments linked to eligibility issues…