KQED's Forum California’s Unemployment Fund is ‘Broken,’ New Report Finds
Dec 9, 2024
Lauren Hepler, an investigative reporter for CalMatters, sheds light on California's struggling unemployment system, which is drowning in a $20 billion debt. Her insights reveal conflicting views between businesses and labor groups over necessary tax reforms. Kim Tanner, a Carlsbad resident, shares her harrowing experience with fraudulent activities linked to the California EDD, dramatizing the human cost of the bureaucratic failures. Together, they underline the urgent need for structural changes to ensure better support for Californians during crises.
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Kim Tanner's Fraud Experience
- Kim Tanner lost $3,000 from her Money Network debit card due to fraud.
- She filed complaints with various agencies and eventually got a refund, but her accounts were compromised.
Unclear Fraud Percentage
- Money Network claims only a small percentage of users experience fraud, but the exact numbers are unclear.
- Lauren Hepler's investigation revealed at least 74 complaints filed with the Consumer Financial Protection Bureau this year.
Outdated Funding Model
- California's unemployment system is funded by businesses through taxes on worker earnings.
- The state taxes only the first $7,000 earned, the lowest taxable wage base in the nation, making the system outdated.