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KQED's Forum

California’s Unemployment Fund is ‘Broken,’ New Report Finds

KQED's Forum

KQED

Politics, News, News Commentary

4.6656 Ratings

🗓️ 9 December 2024

⏱️ 56 minutes

🧾️ Download transcript

Summary

“Broken” is how the Legislative Analyst’s Office describes California’s unemployment insurance financing system in a new report. California is already $20 billion in debt to the federal government for unemployment claims paid during the pandemic, and losses continue to mount. But businesses and labor groups are at odds over whether companies should pay more in taxes to fix it. Meanwhile, the Employment Development Department continues to grapple with problems of fraud and delay in processing benefits. CalMatters investigative reporter Lauren Hepler joins us to break down the challenges the EDD is facing. Guests: Lauren Hepler, investigative reporter, CalMatters Kim Tanner, Carlsbad resident with firsthand experience with California EDD and Money Network Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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From KQED in San Francisco, this is Forum. I'm Mina Kim.

1:07.4

A new legislative analyst's office report describes California's unemployment system as broken.

1:13.3

The state is already $20 billion in debt to the federal government for unemployment claims paid during the pandemic,

1:20.3

with no real plan to cover the cost of ongoing claims even after the debt is paid.

1:25.6

Meantime, the Employment Development Department

1:27.5

continues to deal with fraud

1:29.3

and delays processing benefits.

1:31.8

Cal Matters investigative reporter

1:33.5

Lauren Hepler joins us

1:35.0

to break down the state's unemployment system, CalMatters had just published her investigative report about California's Employment Development Department,

2:03.5

how during the pandemic, the agency managed to pay out tens of billions of dollars in fraudulent unemployment claims,

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