SACRAMENTO, CA (MPG) – The non-partisan State Auditor released the results of an audit about the Employment Development Department (EDD) originally called for by members of the Senate Republican Caucus last summer. The audit results come after news reports show an increase in the number of backlogged claims and that rampant fraudulent unemployment claims are now at a staggering $11 billion and could rise as high as $30 billion.

The audit found that “the economic downturn worsened EDD’s already poor performance” and that, even after adding numerous staff, EDD “only marginally improved the percentage of answered calls.” Last year, Senate Republicans asked for call center metrics to be included in the budget as a way to improve accountability, but the budget approved by the Governor and Democratic leadership did not include that proposal. The audit also found that, due to the inefficiencies and poor management at the EDD, some Californians will have to pay back benefits.

In response to the audit, Senate Republican Leader Shannon Grove (R-Bakersfield) and a bipartisan group of senators delivered a letter to the Chair of the Joint Legislative Audit Committee (JLAC) and the Chair of Senate Budget Subcommittee #5 requesting an immediate oversight hearing. The oversight hearing should focus on EDD implementing the Auditor’s recommendations to address the backlog of claims and prevent future fraud.  To download the bipartisan letter go to: cssrc.us/sites/default/files/210126_EDD-Hearing-Request.pdf