For more than a decade, the California State Auditor has repeatedly warned the Legislature about government waste, fraud, cost overruns and failures of oversight. Many audits included specific recommendations for changes in law or policy intended to fix these problems — but a large share of those recommendations were never implemented.
Key Findings
An exclusive CBS News California analysis of state audit recommendations dating back to 2015 found that lawmakers failed to enact three out of every four recommendations that required legislative action. More than 300 recommendations remain outstanding, affecting over 100 issues and state agencies. In about two-thirds of audits, the State Auditor explicitly notes that lawmakers have taken "no action" on at least one recommendation.
Billions Lost and Ongoing Risks
Some of the state’s costliest episodes of fraud and untracked spending were the subjects of prior audits that urged fixes lawmakers did not adopt. The Employment Development Department’s (EDD) vulnerabilities, highlighted in earlier audits, were a contributing factor in the pandemic unemployment fraud crisis — which is estimated to have cost California more than $20 billion. Subsequent audits show fraud vulnerabilities persist and include recommendations that remain unresolved.
Homelessness spending offers another example: the state has spent more than $20 billion on homelessness programs without uniform outcome standards, a statewide plan or consistent accountability measures — issues the auditor repeatedly flagged but the Legislature has not yet fully addressed.
Public-Safety and Public-Health Consequences
Unresolved audit recommendations also pose risks beyond finances. The State Auditor found that water systems in some areas failed to notify residents when drinking water was unsafe — a public-health risk the auditor urged lawmakers to address. Other outstanding recommendations cover wildfire oversight, law enforcement and court procedures, maternal health care, hate-crime reporting, untested rape kits, affordable housing, and protections for child-abuse victims.
Accountability and Next Steps
CBS News California Investigates is building a public, searchable Audit Accountability Tracker to show what the auditor recommended, which items required changes in law, which remain unresolved, and why they matter to Californians. The tracker is intended to help voters, reporters and the more than 30 newly elected lawmakers — many of whom were not in office when earlier recommendations were issued — understand what remains unfinished and how much inaction may be costing the state.
Assemblymember John Harabedian, the new chair of the Joint Legislative Audit Committee (JLAC), called the backlog a "wake-up call" and said he is focused on strengthening oversight. Whether the current Legislature will act on those written warnings and the solutions already identified remains an open question.
Clarification: An earlier version of this reporting said the auditor investigated water "districts." The auditor actually investigated water "systems," which include water districts.
