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California’s State Auditor has placed Governor Gavin Newsom’s administration and eight state agencies on its updated “high-risk” list, citing concerns about waste, mismanagement, and financial accountability. The California Globe reports the State Auditor warns California faces growing risks to its finances, public safety, and infrastructure. The Department of Social Services was newly added to the high-risk list over CalFresh errors that could cost the state up two-point-five billion dollars a year, while the Employment Development Department remains flagged for improper unemployment payments and poor customer service.
The report also cites ongoing problems with financial reporting, Medi-Cal eligibility, information security, water infrastructure, and the mis-management of 285-billion dollars in federal COVID-19 funds. The auditor’s “high-risk” designation is reserved for agencies where waste, fraud, abuse, or mismanagement could seriously harm the state or its residents.