The Senate is calling for Employment Development Department (EDD) reform to be incorporated in the budget, as a means to expedite the state auditor mandates issued last month.
“The reason we have is so that this is not delayed – they talk about it – but we can’t afford that,” Sen. Jim Nielsen, R-Tehama, told the Northern California Record. “Hence we are saying there are certain times that require this job to be completed – and then mechanisms to track and report to the Legislature what they have done.”
During last Thursday’s meeting of Senate Budget Subcommittee #5, Sen. Shannon Grove, R-Bakersfield, presented a letter, calling for a budget trailer bill to implement the auditor’s recommendations.
“Senate Republicans want the auditor recommendations included in a budget trailer bill because it guarantees implementation of recommendations as soon as the governor signs it, which could be as soon as July 1,” Grove said in a statement to the Record.
Gov. Gavin Newsom last week incorporated the Keep California Working Act into the budget as part of a legislative package to deliver relief to small businesses and families.
The EDD issue requires similarly swift action, Nielsen said.
“Beyond the coronavirus, this has had the most direct and devastating impact on the citizens of California,” Nielsen said. “Thousands of people are telling our legislators, ‘I can’t get my unemployment,’ and then we see the EDD squandering billions by getting checks to inmates who are in prison and in some cases on death row."
“How could a law-abiding citizen feel when people on death row are getting checks?” Nielsen said. “That is patently absurd.”
The deadlines involved in the legislative process could take months longer than the budget route.
Meanwhile, the EDD has drawn the attention of Congress, with some members having called for a hearing. They've also sent a separate letter to Newsom, Attorney Gen. Xavier Becerra, California Labor and Workforce Development Agency Secretary Julie Su, and EDD Director Rita Saenz, asking when and how the fraud and mismanagement will be addressed.
“To make matters worse, because of the incompetence of the Newsom administration, businesses who were forced to close and lose revenue are likely going to pay the price for the tens of billions of fraudulent claims,” Grove said. “Republicans have been fighting to fix the EDD during the pandemic since April 2020 and we will continue to work towards commonsense solutions that protect employers, taxpayers, and help Californians during their time of need.”