🧾 California’s Revealing Audit Bombshell – Jeffery Mead
December 26 | Posted by mrossol | Big Govt, Corruption, Democrat PartyOrange Man Bad: well, just keep voting for the Dems! mrossol
Source: 🧾 California’s Revealing Audit Bombshell – Jeffery Mead
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Just before Christmas, the California State Auditor released a report that should have set off alarms across the state.
It barely made a ripple.
On December 11, 2025, the Auditor published its updated High-Risk Report, flagging eight major state agencies and programs as posing serious risks for waste, fraud, abuse, or mismanagement.
Not one agency was removed from the list.
One major program was newly added.
Several problems have been flagged for more than a decade.
All of this as California heads toward a $20 billion budget deficit next year.
This isn’t bookkeeping trivia. It’s a warning.
🚨 What the Audit Actually Found
The report focuses on programs that touch millions of people and move tens of billions of dollars every year. When oversight fails here, the losses compound fast.
Here are the biggest red flags, in plain English:
🍎 CalFresh (Food Assistance) — Newly Added
- Error rates around 11%, well above federal limits
- Starting in 2028, California—not Washington—will pay penalties
- Up to $2.5 billion per year in improper payments + fines
This is new, and it’s expensive.
💼 Unemployment Insurance (Employment Development Department) EDD
- Still plagued by pandemic-era failures
- $1.5 billion in improper payments in the last two years
- $500+ million in fraud in 2024 alone
- Tied to the infamous $32+ billion COVID fraud disaster
Same agency. Same problems. Same results.
🏥 Medi-Cal Eligibility
- On the high-risk list since 2007
- Persistent data mismatches and weak verification
- $1.9–$4 billion in questionable payments
When a program covers 1 in 3 Californians, small errors become massive losses.
🧾 Unused Federal COVID Funds
- California received $285 billion in pandemic aid
- $2 billion still unspent
- $1.3 billion may expire unused by 2026
Money allocated. Needs unmet. Funds sitting idle.
⚠️ And That’s Not All
The report also flags:
- Delayed financial reports with multi-billion-dollar errors
- Weak cybersecurity across state agencies
- Failed IT megaprojects
- Aging water infrastructure threatening long-term supply
None of these are new. That’s the point.
📈 Why This Went Viral
After the report dropped, a viral post on X pulled together figures from multiple official audits and estimated $76+ billion in waste and fraud during Governor Gavin Newsom’s tenure:
- ~$32B in unemployment fraud
- ~$24B on homelessness programs with little outcome tracking
- ~$18B on high-speed rail with no operable track after 16+ years
- Hundreds of millions more on failed tech projects
That $76B figure isn’t a single line item in this report.
But every dollar comes from real audits.
🧠 The Bigger Issue
This isn’t about one program or one year.
It’s about a system where:
- Spending grows faster than oversight
- Emergencies suspend basic controls
- Political incentives reward expansion, NOT execution
When that happens, accountability erodes—and the same agencies keep showing up on the same lists. Which is what’s happening.
🔒 Want the Full Breakdown?
In the paid deep dive, I walk through each of the eight high-risk areas, explain why these failures keep repeating, and show how this audit fits into a much larger pattern of governance problems.
👉🏾 Join the paid side below to continue.
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