In the midst of ongoing discussions about fraud in Minnesota, a recent audit has revealed that California holds the dubious distinction of being the Fraud Capital of America.
As reported by RedState, Representative Kevin Kiley of California's 3rd District has taken to The New York Post to highlight the findings of a state auditor's report, which paints a damning picture of Governor Gavin Newsom's administration. Kiley, a vocal critic of Newsom, argues that the governor's aspirations for the presidency in 2028 should be met with skepticism, given his track record in California. The report identifies eight state agencies as "high-risk," citing issues of "waste, fraud, abuse, or mismanagement," which have collectively cost taxpayers billions of dollars.
Kiley's op-ed underscores the auditor's findings, stating, "Californias nonpartisan auditor just failed eight state agencies run by Gov. Gavin Newsom, sending a clear message to residents: your state is broken." This critique comes as Newsom touts California's governance as a model of efficiency and accountability, a claim that the auditor's report starkly contradicts. Among the agencies flagged, four have been added to the high-risk list during Newsom's tenure, including the social services department, which was newly designated this year.
The audit highlights significant issues, such as payment errors in food assistance benefits that could cost California $2.5 billion in federal funds. Additionally, the state's failure to meet six consecutive financial reporting deadlines threatens its credit rating and federal funding. These revelations align with concerns previously voiced by Agriculture Secretary Brooke Rollins, who has criticized California for withholding records from the federal Supplemental Nutrition Assistance Program (SNAP).
On the House floor, Kiley further exposed the extent of the fraud, citing the California Air Resources Board's continued payment of a $171,446 annual salary to an employee 15 months after their departure. This example of mismanagement is rivaled by the California High-Speed Rail Authority's oversight of a project that has been plagued by delays and cost overruns. Kiley's efforts to halt federal funding for the rail project were successful, with the Department of Transportation withdrawing $4 billion in July, prompting a lawsuit from Newsom's administration against the Trump administration.
Governor Newsom accused the Trump administration of "illegal conduct" following the funding withdrawal, describing the rail project as nearing completion. However, Transportation Secretary Sean P. Duffy labeled the project a "boondoggle," asserting that federal funds are not a "blank check." The lawsuit, which alleged political retribution, has since been dropped, with the state acknowledging the federal government's unreliability as a partner in advancing high-speed rail.
The decision to abandon the lawsuit reflects California's financial challenges, with an $18 billion deficit projected by the end of 2025. Kiley celebrated the withdrawal, noting that the $4 billion could now be redirected to road improvements rather than the stalled rail project. He pointed out that the high-speed rail's costs have ballooned to $128 billion, with no track laid in 17 years.
Governor Newsom, however, dismissed Kiley's claims, asserting, "Kiley is wrong." Yet, the state auditor's findings reveal significant mismanagement under Newsom's leadership, including $24 billion in unaccounted homelessness funds and $32 billion in unemployment fraud. Kiley's appearance on Fox News' The Ingraham Angle reinforced these points, urging Americans to review the auditor's reports for themselves.
Kiley's op-ed concludes with a stark warning: allowing Newsom to ascend to the presidency could have dire consequences for the nation. With the 2028 election looming, the implications of this warning are significant. Newsom's priorities, as demonstrated by his recent Kwanzaa greeting, appear to focus on virtue signaling rather than addressing the fraud and mismanagement within his administration.
In a video message, Newsom and First Partner Jennifer Siebel Newsom extended Kwanzaa greetings to Californians, emphasizing the holiday's principles of community, purpose, and unity. However, critics argue that this gesture is emblematic of Newsom's tendency to prioritize image over substance, particularly in light of the fraud that has occurred under his watch.
As the debate over California's governance continues, the findings of the state auditor's report serve as a cautionary tale for those considering Newsom's potential presidential candidacy. The question remains whether the nation will heed this warning and scrutinize the leadership qualities of those seeking higher office.
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