California has a long way to go. California Capitol. Photo by Anne Wernikoff for CalMatters
This last year California once again ranked worst in the nation to do business,
according to an annual report by CEO Magazine1, and numerous examples of
waste, fraud and abuse totalling billions of taxpayers dollars down the drain were
reported by independent investigations. However, none of that is actually new. For
years, Sacramento has tied up small business owners in red tape and wasted the
people’s hard-earned tax dollars without much in the way of political repercussions.3
Perhaps it is exactly this lack of consequence for their mismanagement that has
made the political class believe they can continue to abuse the public trust forever
without jeopardizing their position of power.
However, this last year brought signs that people may no longer be willing to look
the other way just because the weather is pleasant. For the first time ever, Silicon
Valley, long one of California’s biggest economic engines, saw its share of venture
capital investment nationally fall below 20 percent.2
Meanwhile, tourism, long a California strength, continued to suffer in 2021 despite
a $95 million marketing blitz by the Newsom administration. California tourism in
2021, while up from 2020, still lagged far below its 2019 performance, with many
travelers opting to go instead to Florida, which made major gains.3
California’s ongoing exodus of jobs and productive citizens also resulted in the
state’s first-ever loss of a Congressional seat, indicating the state’s political power in
Washington may be on the decline if the policies driving this exodus remain
unaddressed.
California’s new budget system, a program dubbed “Fi$Cal,” is now years behind
schedule and hundreds of millions over budget. This disaster, which some have
suggested could have been averted completely by using an off-the-shelf solution,
has been discussed in the Follow the Money report before because the delays have
turned into an ongoing saga that may even threaten California’s credit rating. The
latest target completion date is now the summer of 2022, but this date has been
pushed back five times already from its original target of 2016, so whether this time
is the true completion date is anybody’s guess.5,65
Los Angeles County lifeguards make up to $392,000
3/27/21
An investigation by auditors at the nonprofit OpenTheBooks.com found L.A.
lifeguards can make a virtual fortune. They found in 2019, 82 lifeguards made over
$200,000 and seven made over $300,000, including the value of benefits.7
It’s your money but you can’t see the checkbook ...
5/12/21
Can you imagine if you or I told the IRS we "can't locate" our records? The Federal
government, hundreds of large cities and 49 states are all able to produce a
checkbook detailing their spending. However, in California a watchdog organization
has been requesting this information for nearly two years and has yet to receive the
records, with State Controller Betty Yee saying she “can’t locate” them. In fact, the
organization requesting the records says not a single transaction out of $320 billion
of spending has been disclosed.8
DMV employees admitted taking bribes for licenses
5/18/21
5 DMV employees at the agency’s Torrance and Lincoln Park offices admitted taking
bribes in exchange for issuing licenses to unqualified drivers. Tens of thousands of
dollars were received in connection with the scandal and the employees involved
admitted to taking bribes several times a week. The scam was discovered by a DMV
investigator who noticed an unusual pattern associated with the fraudulent
applications.96
California’s “First Partner” Jennifer Siebel Newsom receives corporate donations
6/4/21
An investigation by the Sacramento Bee found Governor Newsom’s wife’s nonprofit,
an organization focusing on gender equity in film, has received $800,000 in
donations from companies involved in lobbying the state. These companies, which
have also donated to the Governor’s political activities, include PG&E, Kaiser
Permanente, AT&T, and Comcast. The Governor denies the donations to his wife’s
nonprofit have any inappropriate influence on his decisions, stating in response to
reporters’ questions, "There's no correlation, period, full stop. Absolutely none."10
Top union leader charged with tax fraud, embezzlement, perjury and failure to
pay taxes
10/14/21
The executive director of the SEIU, the state’s largest union and an advocate of
higher taxes, resigned after being charged with numerous crimes including failure
to pay her own taxes. Under this official’s tenure, the union donated more than $6
million to Gavin Newsom’s anti-Recall campaign.11
State employment chief says she doesn’t know why unemployment is high
10/26/21
California’s unemployment rate soared to historic highs as strict COVID-19 rules
combined with the state’s usual high tax and anti-business political stance.
However, when Assemblyman Kevin Kiley questioned the Director of the
Employment Development Department on why unemployment was so high she
was absolutely baffled, and said she would have a “research team” look into it.127
Regular Californians told to “stay home save lives” while politicians enjoy
junkets
11/4/21
Although many Californians
continued to live under strict
COVID-19 rules, legislators
themselves enjoyed trips to Pebble
Beach, Australia, Scotland, Portland
and Maui. Many of these trips were
paid for by lobbyists with
important business before the
Legislature. These
all-expenses-paid trips give lobbyists an opportunity to discuss their issues while they
wine and dine politicians, giving them an additional level of access not enjoyed by regular
constituents.13
State employees embezzle $2.7 million intended for AIDS patients
11/16/21
State employees conspired to bilk the California Office of AIDS of $2.7 million
through a scheme where fake invoices were submitted on behalf of a company that
didn’t actually exist. The funds embezzled were used to fund travel, cruises, parties
and trips to sporting events. The fraud was first discovered when an official asked
for more information on the fake company, but not until millions had already been
stolen. Government watchdogs pointed to the situation as an example of why more
safeguards are needed to ensure taxpayer funds are spent appropriately.148
Education
Congressman’s son accepted to Stanford following $50,000 donation
8/15/21
Democrat Rep Ted Lieu donated $50,000 of campaign funds to Stanford University
before his son was accepted, Federal Election Commission reports have revealed.
The contributions were first exposed by an anonymous Twitter account, which was
subsequently banned by the social media giant.15
LA Councilman charged with funneling lucrative contracts to USC in exchange
for a professorship and scholarship for disgraced son
10/15/21
A federal grand jury indicted South L.A. Councilman Mark Ridley-Thomas on
charges of funneling millions of dollars of contracts to the University of Southern
California in exchange for an admission with a full scholarship and a paid
professorship for his son. His son, Sebastian Ridley-Thomas, is himself no stranger
to scandal. Sebastian Ridley-Thomas was a State Assemblymember embroiled in a
“#metoo” scandal before resigning his position with the Assembly to become a
professor, despite lacking a graduate degree.16
Inland Empire superintendent makes $600,000 plus a year
11/15/21
Including benefits, the superintendent of Ontario Montclair schools routinely
receives over $600,000 a year. His high rate of compensation includes various
benefits including an ability to cash out sick time, resulting in a 2019 salary of9
$561,748, more than the President of the United States earns at $400,000
annually.17
California diversity bureaucrat doesn’t even live in California
12/14/21
California’s Superintendent of Equity, a brand new position paying $180,000 a year,
resigned after Politico revealed he didn’t even live in California, but lived in
Philadelphia where he ran a business. Further questions were raised about the
ethics of how he was hired. The position was not found to have been publicly
posted on the state’s website and the official’s resume did not show any experience
working with California school districts. Meanwhile, it was revealed he had a
decades-long friendship with the State Superintendent of schools.18,19
Energy and the Environment
Unpaid utility bills rise to $1.25 billion
3/3/21
A report on COVID-19 by the California Public Utilities Commission revealed the
state’s public utilities have unpaid bills totalling $1.25 billion, the costs of which are
ultimately shouldered by ratepayers who do pay their bills. Contributing to
Californians’ increasing inability to pay their bills may be the state’s
“decarbonization” efforts. In fact, in the last seven years, rates charged by San
Diego’s electric company PG&E, and Southern California Edison, increased 48
percent, 38 percent, and 6 percent respectively.20
The Los Angeles County district attorney charged four men including a former state
senator with stealing $20 million intended for a solar project. One of the individuals
is accused of spending over $8 million of these funds on personal items.23
California bans gas powered lawn mowers and leaf blowers, pledges $30 million
for electric equipment
10/19/21
As part of the California Legislature and the California Air Resources Board’s
ongoing drive to save the planet, officials have decided gas powered lawn mowers
and leaf blowers will no longer be made available to consumers after 2024. The
plan also includes spending $30 million to incentivize the purchase of electric lawn
mowers and leaf blowers, which will still be allowed.24
Free Money!
LA cuts police funding, diverts funds to free money payouts
4/19/21
L.A. Mayor Eric Garcetti’s budget included
$24 million dedicated to
no-strings-attached $1,000-a-month
payments to Angelenos. Low income
parents and people suffering from medical
conditions are expected to receive priority
in the selection process. An additional $6
million diverted from the Los Angeles Police
Department is set to provide payments to12
single parents in L.A.’s City Council District 9, which includes the communities of
South Central and downtown. Considering that these payments are paid for by
police cutbacks, who are the recipients supposed to call if their check is stolen?25
25 lucky LGBT seniors in West Hollywood to get $1,000 checks
8/31/21
25 LGBT senior citizens will receive unconditional $1,000-a-month payments under
a new program in partnership with the University of Pennsylvania and an
organization of mayors advocating more such “universal basic income” programs
be adopted nationally. While some in the community expressed concerns over why
the program leaves out other groups considered marginalized, officials argued they
lacked full control of the program due to the partnership. Specifics related to
funding the program also remained to be finalized.26
San Francisco plans to pay people $300 a month to not shoot others
9/2/21
10 individuals in San Francisco deemed to be at risk of being part of a shooting will
receive $300 a month to behave better. These payments, which are funded by a
nonprofit through a partnership with the city, will be in the form of gift cards, and
the payments can be bumped up to $500 if the individuals participating also
perform some volunteer work.27
Health and COVID-19
How do electric cars prevent coronavirus?
1/16/2113
Governor Newsom’s COVID-19 relief budget raised some eyebrows when a closer
look at the proposal revealed it included $1.5 billion for electric car infrastructure
and incentives. In fact, the amount of money allocated to electric cars was nearly
triple the $575 million planned for helping small businesses weather the
pandemic.28
Counties that vote for the majority party get more coronavirus relief
1/20/21
Although rural, more Republican-leaning counties are no less susceptible to the
effects of the COVID-19 pandemic, the state auditor found large cities were
prioritized for receiving relief. Do you think this was a coincidence or a conscious
decision to favor counties that are more supportive of our state's majority political
party?29
EDD and Bank of America “nifty little kickback scheme”
2/5/21
While many Californians struggled to receive unemployment benefits, the EDD and
Bank of America were receiving revenue every time debit cards issued by the
agency were swiped, according to a CalMatters report. Although officials said they
did not know how much money Bank of America received, and Bank of America
itself declined to comment, the EDD reported receiving $5.2 million in September
alone in response to a public records request by CalMatters. “This is essentially a
nifty little hidden kickback scheme,” said Assemblymember Jim Patterson.30
Big businesses give big to Newsom and receive lucrative contracts
2/18/2114
Governor Newsom raised over $200 million in “behested payments,” mostly for
COVID-19 relief programs. These donations, which were made at the Governor’s
request, included payments from healthcare companies that received lucrative
state contracts. Is this actually appropriate? You be the judge.31
When you’re the government you pay when you want ...
2/5/21
Have you ever gotten a threatening letter from the government over an unpaid tax
bill or fine? They want to be paid on time and they’re not afraid to threaten drastic
consequences if ordinary taxpayers can’t pay up. However, when it comes to them,
they don’t hold themselves to the same standard they expect from the rest of us.
When Los Angeles experienced a fiscal crisis they simply blamed the coronavirus
pandemic and told their creditors they would have to wait.32
California spends $50 million on “glitchy” COVID-19 appointment website
4/22/21
Only 27 percent of Californians who received coronavirus vaccinations used
“MyTurn” to schedule their appointments due in part to multiple glitches in the
hastily-built site. The site failed to list many providers and pharmacies where
Californians could be vaccinated and the site also frustrated and confused people
by requiring multiple logins. The contract to build the site itself was awarded to
Blue Shield of California on a “no bid” basis.33
Who wants to be a vaccinated millionaire?!
5/27/21
As part of its drive to get Californians vaccinated against COVID-19, the state
resorted to lottery-style payouts and prices. Under this plan, 10 Californians15
received $1.5 million each in prizes, 30 got $50,000 and 2 million were eligible for
$50 gift cards.34
Lab awarded $1.7 billion contract despite reports they were sleeping on the job
11/4/21
Whistleblowers exposed a COVID-19 test facility for serious problems including lab
techs sleeping while processing samples and test swabs found in bathrooms. First,
state officials denied the existence of any problem at all. While they later did
acknowledge “serious deficiencies” were present, they still renewed a contract
worth $1.7 billion with the same lab.35
Housing
When does an 8-foot shed cost $130,000? When the government is in charge of
buying it.
2/8/21
A program to build “tiny home villages” in Los Angeles consisting of 64-square-foot
aluminum and composite sheds, paid $130,000 each for the structures, ten times
what other cities spent, according to a Los Angeles Times report.36
Tents that cost more than luxury apartments
6/25/21
The San Francisco Chronicle reported 260 tents San Francisco maintains in six
“sleeping villages” cost the city $5,000 per tent per month, or $60,000 annually. In
addition to tents, the sleeping villages provide access to showers and 3 meals a day,
but some have raised concerns about the cost. At $5,000 per tent per month, the16
rent on a luxury apartment would be less, and the rent on an average 1-bedroom
apartment in San Francisco would be less than half.37,38
Rent relief money gets stuck in bureaucracy
8/4/21
The U.S. Treasury allocated $900 million to provide rent relief for San Francisco
residents, but as of mid-July only about 10 percent of the money had actually
reached residents. The program was heralded as an unprecedented collaboration
of multiple levels of government but the money, however well intentioned, seems
to have gotten stuck in the bureaucracy.39
California’s high-speed rail officials awarded a contract for construction of a Central
Valley segment of the route to the lowest bidder, a Spanish company named
Dragados. Dragados promised it could deliver $300 million in cost savings with
design changes. These design changes were later abandoned and Dragados is now
four years behind schedule and has only completed 50 percent of the work it had
planned. The High-Speed Rail Authority bears a share of the responsibility both for
not doing its due diligence on the feasibility of the proposal itself and by failing to
deliver 278 of 998 land parcels needed to complete construction.45
30 new light rail trains in the Bay Area
9/23/21
San Francisco County Supervisors approved $200 million for 30 new light rail trains
and new parking meters. However, given that transit ridership was falling even
before the pandemic, whether this is actually a good idea is an appropriate
question.46
Conclusions
It’s always important to note that the waste, fraud, and abuse listed in the Follow
the Money report is not a full list of government ineptitude and corruption for the
year — it’s simply a selection of examples that were publicly exposed by watchdog
organizations, media investigations and official inquiries. The fact that the Howard
Jarvis Taxpayers Foundation can compile such a report annually, each with new
revelations of billions of dollars wasted, illustrates the extent of the problem.
People once flocked to California from around the country and around the world.
Today, people are leaving in droves to go to states like Texas and Florida where
taxes and lower and state governments are less overbearing.
Whole and original article is here.
Tax Day can be a painful reminder of how much we have to invest in federal, state and local governments, though many of us are unaware of exactly what they give us in return. As a result, this creates a disconnect in the minds of taxpayers between the amount of money we should fork over on Tax Day (April 18 this year) – and how much we deserve in return.
Americans have looked at taxes with especially high scrutiny during the COVID-19 pandemic. In fact, 81% of people think the government doesn’t spend their tax dollars wisely, according to WalletHub’s Taxpayer Survey. We do know, however, that taxpayer return on investment, or ROI, varies based where one lives. Federal income-tax rates are uniform across the nation, yet some states receive far more federal funding than others. Different states have also received vastly different amounts of COVID-19 aid.
Federal taxes and support are only part of the story, though. Different states have dramatically different tax burdens. This begs the question of whether people in high-tax states receive superior government services. Likewise, are low-tax states more efficient or do they receive low-quality services? In short, where do taxpayers get the most and least bang for their buck?
WalletHub aimed to answer that question by contrasting state and local tax collections with the quality of the services residents receive in each of the 50 states within five categories: Education, Health, Safety, Economy, and Infrastructure & Pollution. Our data set includes a total of 30 key metrics.
Californeignia - most hypocritical, anti-American, socialist bunch of self-serving politicians. UGH!!