Department botched jobless-worker benefits during pandemic, allowed massive fraud and still hasn’t fixed its problems
EDD was left with a huge mess on the federal benefits and a huge debt to the feds for the state benefits. Kiley — and many other critics — conflate the two, claiming that the state borrowed money to offset the fraud. That’s simply not true; they are two distinct messes.
Many states borrowed money to maintain UI payment during the pandemic, but none even close to California’s total, and all but California and New York have since repaid their loans. New York’s remaining debt is about a third of California’s $18 billion.on their employers to collect its money, but one could argue that the current debt should not fall on employers because the state caused it by shutting down the economy.
When the state was enjoying huge budget surpluses, it could have repaid the debt. It’s now facing budget deficits, so employers are on the hook, and Kiley’s “deadbeat governor” epithet may be justified. Meanwhile, EDD’s managerial shortcomings also continue. Last week, State Auditor Grant Parks issued an update of issues and agencies that pose high risks of failure and“EDD has not taken adequate corrective action to prevent the substantial risk of serious detriment to the state and its residents,” Parks declared. “Corrective action is adequate when it prevents a risk — such as the risk of fraud — from presenting a substantial risk of serious detriment.
Kiley’s erroneous posting undercut his own credibility. He could have been accurate and uttered the same criticism of Newsom, whose performance on UI was and is shameful for someone who aspires to national political leadership.
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