[Congressional Record Volume 171, Number 214 (Thursday, December 18, 2025)]
[House]
[Pages H6111-H6112]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      CALIFORNIA AUDITOR'S REPORT

  (Under the Speaker's announced policy of January 3, 2025, Mr. Kiley 
of California was recognized for 30 minutes.)
  Mr. KILEY of California. Mr. Speaker, the California State auditor, 
the nonpartisan official auditor for the State, has just released a 
report that updates its assessment of the State's high-risk agencies.
  The contents of this report are truly stunning--not really that 
stunning, actually, for those of us who have experienced the California 
State government at work. Even given our very low expectations, what 
the auditor has just reported is truly troubling.
  This comes, by the way, as our State's Governor, Gavin Newsom, has 
recently boasted that California is the original DOGE. Newsom held out 
California government as a model of efficient, responsive, and 
accountable government.
  Let's juxtapose that very notable statement, very surprising 
statement, with the clear-eyed fact findings of the State auditor. In 
this new report, which is issued annually, the auditor identifies high-
risk State agencies. What does that mean? It means they pose a 
substantial risk of serious detriment to the State or its residents. To 
be considered high risk, an agency must not only exhibit serious waste, 
fraud, abuse, or mismanagement but must also have failed to take 
adequate corrective action.
  In this new report, the auditor has identified eight separate 
California agencies as high risk. Four of those eight have joined the 
club, this dubious distinction, during the Newsom administration, 
including the newly added Department of Social Services this year.
  Among the findings as to why these various agencies are considered 
high risk are that massive payment errors in our CalFresh program could 
now cost the State $2.5 billion in Federal funds.
  With Medi-Cal eligibility, ongoing problems in determining who is 
eligible, continuing to make payments to people who don't meet the 
income threshold, or who have left the State entirely, is also putting 
billions of dollars at risk.
  Continued fraud and overpayment with our unemployment insurance 
benefits continue to cost the State billions of dollars. This is after 
the massive $32 billion fraud in unemployment benefits during the COVID 
years.
  Incredibly, the State has missed six straight deadlines for its 
annual comprehensive financial report, which puts in jeopardy our 
credit rating, as well as Federal funding.

  The auditor's report documents IT projects that languish for months, 
for years, as antiquated systems beleaguer our bureaucracy, this 
despite Silicon Valley being a stone's throw away.
  You have State entities that continue to fall short of minimum 
standards for information security and cybersecurity, putting our 
State, data, and privacy at risk.
  Alarmingly, it is more than just cybersecurity. It is also the 
security of our physical infrastructure. For instance, the auditor 
finds that there are 49 dams that pose an extremely high hazard to life 
and property, and it is getting worse. In just the last 2 years, the 
number of dams rated either poor or unsatisfactory has increased by 73 
percent.
  The quality of government service is also unacceptably low. With the 
EDD, for example, not only do we have continuing, ongoing massive fraud 
and overpayments, but the folks who actually deserve to get paid 
benefits have a heck of a time getting the benefits they are entitled 
to.
  The auditor found that, on average, the typical claimant has to call 
the EDD two to five times per week just to get assistance. The EDD has 
consistently failed to meet Federal benchmarks for timely payments to 
those who are actually deserving of benefits, whereas those who are 
committing fraud against the system seem to have no trouble getting 
their hands on as much money as they would like.
  There are other examples in this report that just truly boggle the 
mind. For example, the aforementioned EDD during the COVID-19 years 
decided to order thousands of mobile devices, 7,224 to be exact--this 
is cell phones, hotspots--so that employees who aren't going into work 
can continue to do their jobs. These mobile devices, even after they 
were no longer being used because the pandemic was over, the State 
continued to pay for them, for thousands of them. They continued to pay 
service fees, costing the State millions upon millions of dollars.

                              {time}  1750

  Another illustrative example comes from CARB, the California Air 
Resources Board, that is responsible in many ways for the very high gas 
prices that the citizens of California have to pay. The report found 
that there was one particular CARB employee who was paid $171,446 in 
salary on an annual basis, so a pretty decent salary they are getting 
paid. Here is the problem: It was for nearly 15 months after the 
employee had stopped working that they continued to get paid.
  On top of all of this, the auditor found rampant nepotism at the 
Department of General Services and Caltrans when it came to hiring. 
They would hire their family members. They would hire their friends for 
these State jobs. They would even find instances where managers gave 
the candidates the questions, interview questions, in advance in order 
to help them get the job.
  Now, all of this is in addition to the very well-known examples of 
just mind-boggling fraud and waste that exist in the California 
government.
  We, of course, have the high-speed rail, now estimated to cost $128 
billion, which is several times more than initially anticipated, where 
after nearly 20 years we still haven't seen any track laid.

[[Page H6112]]

  We have homelessness where there was another State audit that found 
that the State spent $24 billion, lost track of the money, couldn't 
tell us where it went, and couldn't tell us if it did any good. 
Meanwhile, the homeless population in California increased 
substantially to the point to where half of the unsheltered homeless in 
this country reside in California.
  More recently, we had the 911 system, where taxpayers were charged on 
their phone bills for years. $650 million was spent to build out a new 
911 system, and then the State had to scrap the whole project because 
the technology doesn't work.
  Mr. Speaker, this is absolutely unacceptable. Californians sacrifice 
so much, paying the highest taxes in the country, and yet our citizens 
also get the least in return.
  I will continue to call for accountability for the agencies and, more 
importantly, the political leaders in California who refuse to reform 
our State government in a manner that more appropriately and 
effectively serves our citizens.
  I will also continue to use every tool we have here at the Federal 
level to insist upon the State giving our taxpayers a higher return on 
their investment. I will make sure that everyone is aware that when the 
Governor says the California government is a model of efficiency and 
responsiveness, nothing could be further from the truth.


              Recognizing Folsom High School Football Team

  Mr. KILEY of California. Mr. Speaker, they have done it again. I rise 
today to recognize an extraordinary achievement by the Folsom High 
School Bulldogs football team, who captured their sixth California 
State championship with a very impressive 42-28 victory over Cathedral 
Catholic.
  This championship run was defined by resilience, preparation, and 
leadership, none more evident than in the performance of junior 
quarterback Brody Rudnicki, who stepped into the spotlight and 
delivered a truly remarkable performance.
  Brody accounted for six total touchdowns, throwing for two scores and 
rushing for four more while compiling 117 passing yards and 186 rushing 
yards.
  This title marks the second State championship in the last 3 years 
under the leadership of Head Coach Paul Doherty, whose commitment to 
excellence has continued to elevate the Folsom football program as one 
of the premier high school programs in the entire State of California.
  The Bulldogs' championship capped off an outstanding 14-1 season, 
highlighted by a 12-game winning streak that showcased consistency, 
teamwork, and competitive excellence throughout the year.
  Equally impressive is the program's success in preparing student 
athletes for the future. Seven senior players have committed to 
continue their football careers at the next level, earning 
opportunities at some of the Nation's most well-respected institutions 
and programs, including the United States Military Academy at West 
Point, Dartmouth College, Brigham Young University, the University of 
Southern California, Stanford University, the University of Nevada, and 
Oregon State University. These commitments reflect not only athletic 
talent but also academic achievement and character.
  I had the chance to visit with the team a couple years ago when they 
won the State championship. When I was in the State legislature, 
because they won championships back then too, I actually had the chance 
to recognize the team during a session where they were there in 
attendance and the coaches were on the floor with us. The team was up 
in the gallery. That was a lot of fun.
  I am sorry they can't be here in the U.S. House, though they are 
certainly welcome to visit anytime. At the very least, I look forward 
to seeing all of the players and hardworking coaches in person very 
soon and extending my congratulations, because this team means so much 
to the city of Folsom and to our entire community.
  Congratulations, once again, to the State champions Folsom High 
School Bulldogs.
  Mr. Speaker, I yield back the balance of my time.

                          ____________________