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California s $1 Billion Accounting Software Continues to Plague Taxpayers – Courthouse News Service
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A group of California lawmakers announced a package of legislation today to bring necessary reforms and oversight to the Employment Development Department’s (EDD) unemployment insurance (UI) program. The bills would enact crucial oversight and consumer protection measures, ensure claimants get timely access to benefits, and address fraud.
Since the start of the pandemic, there have been widespread reports of the trouble at the EDD. Millions of Californians have struggled to access the unemployment benefits they are legally entitled to, leaving many vulnerable without income or recourse during a pandemic and recession. Despite mass fraud prevention account freezes that harmed thousands of legitimate UI claimants, EDD has still fallen prey to rampant unemployment fraud, most egregiously coming out of California prisons.
By Nick Cahill
SACRAMENTO (CN) Inheriting a mounting bureaucratic disaster that has floated lifelines to inmates but left newly jobless Californians broke, lawmakers on Thursday called for a reboot of the state’s Employment Development Department.
Pressed to act after a series of
audits revealed inmates and fraudsters took the department for at least $10 billion during the pandemic, a group of Assembly members say sweeping changes are needed to make the troubled department functional once again.
“We want to fix it,” said Assemblyman Rudy Salas, D-Bakersfield. “EDD needs to be reformed, it needs to more responsive to Californians especially during a time of need.”
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