Please ensure Javascript is enabled for purposes of website accessibility
How California Mistreated Its Working Families
By admin
Published 3 years ago on
February 23, 2022

Share

 

Democratic politicians frequently and vehemently express their admiration for and support of what they call “working families,” while contending that rival Republicans lack such empathy.

Despite that political posture, the Democratic governor of California, with the implicit support of a Democrat-dominated Legislature, has imposed unnecessary misery on those they purport to value, as a new report from the Legislature’s budget analyst confirms.

‘A Bureaucratic Chernobyl’

When COVID-19 struck California two years ago, Gov. Gavin Newsom declared a state of emergency and ordered closure of large segments of the state’s economy to battle its spread. Almost immediately, more than two million workers were laid off as their employers complied with the orders and most applied for unemployment insurance benefits to keep themselves and their families housed and fed.

Dan Walters

CalMatters

Opinion

Whether the closures and resulting layoffs were justified, in terms of their pandemic-fighting effects, will be endlessly debated. Regardless, they happened and having lost their jobs by executive decree, the suddenly idled workers’ claims for benefits deserved rapid and accurate processing by Newsom’s Employment Development Department.

Instead, EDD’s pandemic operations rapidly devolved into a bureaucratic Chernobyl with immense and prolonged backlogs of claims, unresponsive handling of claimants’ inquiries, rampant fraud and, as the new report details, botched anti-fraud practices that blocked payments to those with legitimate claims.

The state’s oversight agencies, particularly the state auditor’s office, have steadfastly catalogued EDD’s shortcomings and the latest report, focusing on about $20 billion in fraudulent payments and EDD’s measures to battle it, comes from the Legislative Analyst’s Office.

What emerges is a tale of an agency repeatedly failing to act when necessary and then overreacting as it tries to correct its previous errors.

EDD Fraud Net Caught Legitimate Claimants

Embarrassed by the revelations of fraud, mostly involving special federal jobless benefits, EDD’s managers went overboard in adopting anti-fraud policies, thus denying benefits to many legitimate and qualified claimants, the LAO report declares.

At one point, it says, “EDD and (and an outside contractor) identified 1.1 million claims as potentially fraudulent. EDD stopped payments for these claims. Workers were not notified ahead of time. To reopen their accounts, workers had to verify their identity using ID.me or their accounts would be closed permanently. Ultimately, more than half of the claims (600,000) flagged as fraudulent were confirmed as legitimate.”

Thus, the “working families” that Democrats profess to treasure have been doubly and triply mistreated.

Newsom’s proposed 2022-23 budget contains funds for six contracts by outside vendors to prevent future fraud, in addition to 13 other fraud-related contracts and the LAO report questions “whether additional anti-fraud efforts are warranted at this time.”

“Moving forward at this time with new, additional layers of fraud protection also would move the department further out of balance by again prioritizing fraud elimination at the expense of prompt and straightforward payments,” the report states.

Earlier Reform Opportunities Missed

One of the most irritating things about the EDD’s incredibly bad performance over the last two years is that its political overseers had plenty of warning. During the previous recession that began in 2007, the department experienced great difficulty in handling a surge of unemployment insurance claims because of antiquated tools and procedures.

However, once that recession ended, the agency reverted to its customary ministerial roll and no one — in particular Newsom’s predecessor, Jerry Brown — took the proactive step of improving EDD’s capabilities before the next recession hit.

Thus, when it did hit in 2020 by Newsom’s decree, the department was overwhelmed and the shortcomings revealed in the previous recession were magnified. It’s another reminder of government’s endemic inability to look ahead and plan ahead.

About the Author

Dan Walters has been a journalist for nearly 60 years, spending all but a few of those years working for California newspapers. He began his professional career in 1960, at age 16, at the Humboldt Times. For more columns by Walters, go to calmatters.org/commentary.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Elon Musk Exiting Trump’s Team After Criticizing the ‘Big Beautiful Bill’

DON'T MISS

Tulare Student Will Compete in Scripps National Spelling Bee Finals

DON'T MISS

Federal Trade Court Blocks Trump From Imposing Sweeping Tariffs Under Emergency Powers Law

DON'T MISS

Why Did the California Senate Shunt a Cost-Cutting Housing Bill?

DON'T MISS

Fresno Teachers Call for Probe After Superintendent Orders Up Dossier Against Union

DON'T MISS

US Court Blocks Trump’s ‘Liberation Day’ Tariffs

DON'T MISS

Rubio Says US Will Start Revoking Visas for Chinese Students

DON'T MISS

CA Man’s 378-Year Sentence Overturned After Judge Rules Accuser May Have Made Up Charges

DON'T MISS

Fresno Man Faces Life in Prison for Fentanyl, Gun Charges

DON'T MISS

Tiger’s Son, Charlie Woods, Wins Team TaylorMade Invitational in Claiming 1st AJGA Event

UP NEXT

Fresno’s Crime Beat Didn’t Prepare Me for What I Saw on a Ride Along

UP NEXT

The MAGA Revolution Threatens America’s Most Innovative Place

UP NEXT

California’s High Living Costs and Rampant Poverty Sharpen Its Economic Divide

UP NEXT

Three Well-Tested Ways to Undermine an Autocrat

UP NEXT

Test Your Memorial Day Knowledge With This Quiz

UP NEXT

Gavin Newsom’s Off-the-Mark Budget Numbers Undermine His Credibility Again

UP NEXT

The Trump-Supporting Christians Accusing Jews of Antisemitism

UP NEXT

Congress Debates Two Issues With Big CA Implications: EVs, Taxes

UP NEXT

Newsom’s Budget Cuts Anger Allies and Leave the State’s Chronic Deficit Unresolved

UP NEXT

The Tragedy of Joe Biden

Why Did the California Senate Shunt a Cost-Cutting Housing Bill?

11 hours ago

Fresno Teachers Call for Probe After Superintendent Orders Up Dossier Against Union

11 hours ago

US Court Blocks Trump’s ‘Liberation Day’ Tariffs

12 hours ago

Rubio Says US Will Start Revoking Visas for Chinese Students

12 hours ago

CA Man’s 378-Year Sentence Overturned After Judge Rules Accuser May Have Made Up Charges

13 hours ago

Fresno Man Faces Life in Prison for Fentanyl, Gun Charges

13 hours ago

Tiger’s Son, Charlie Woods, Wins Team TaylorMade Invitational in Claiming 1st AJGA Event

14 hours ago

Wired Wednesday: The Human Side of Law Enforcement

14 hours ago

CIF Expands Field, Changes Medal Rules for State Track Championships Amid Trump Pushback

14 hours ago

Get Ready for Several Years of Killer Heat, Top Weather Forecasters Warn

15 hours ago

Elon Musk Exiting Trump’s Team After Criticizing the ‘Big Beautiful Bill’

WASHINGTON — Elon Musk is leaving his government role as a top adviser to President Donald Trump after spearheading efforts to reduce and ov...

10 hours ago

Elon Musk listens as President Donald Trump speaks with reporters in the Oval Office at the White House, Tuesday, Feb. 11, 2025, in Washington. (AP/Alex Brandon)
10 hours ago

Elon Musk Exiting Trump’s Team After Criticizing the ‘Big Beautiful Bill’

11 hours ago

Tulare Student Will Compete in Scripps National Spelling Bee Finals

11 hours ago

Federal Trade Court Blocks Trump From Imposing Sweeping Tariffs Under Emergency Powers Law

11 hours ago

Why Did the California Senate Shunt a Cost-Cutting Housing Bill?

11 hours ago

Fresno Teachers Call for Probe After Superintendent Orders Up Dossier Against Union

President Donald Trump holds a chart next to U.S. Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria/File Photo
12 hours ago

US Court Blocks Trump’s ‘Liberation Day’ Tariffs

U.S. Secretary of State Marco Rubio meets with German Foreign Minister Johann Wadephul (not pictured) at the State Department in Washington, D.C., U.S., May 28, 2025. REUTERS/Elizabeth Frantz
12 hours ago

Rubio Says US Will Start Revoking Visas for Chinese Students

13 hours ago

CA Man’s 378-Year Sentence Overturned After Judge Rules Accuser May Have Made Up Charges

Help continue the work that gets you the news that matters most.

Search

Send this to a friend