The Riverside Press-Enterprise

Julie Su prepares to forgive herself for Julie Su’s mistakes

- By Will Swaim

Julie Su is giving herself a gift. Now serving as Joe Biden’s acting U.S. Secretary of Labor, Su is prepared to force U.S. taxpayers to pay off California’s loss of some $30 billion in federal Covid-relief funds.

Those staggering losses occurred while Su was California’s secretary of labor.

That news is buried in California’s 2022 annual comprehens­ive financial report, an otherwise obscure document filed on March 15. In the very last paragraph, on page 186 of the sprawling report, just before anaphrodis­iac spreadshee­ts included as “Required Supplement­ary

Informatio­n,” California’s state controller notes that Su’s U.S. Department of Labor has issued helpful “guidance” for state finance officials in “Unemployme­nt Insurance Program Letter 05-24.”

The U.S. Department of Labor’s DOL 05-24 memo notes that a COVID-ERA agreement between the feds and state unemployme­nt department­s “required states to use the CARES Act funds ‘for the purpose for which the money was paid to the state’ and to ‘take such action as reasonably may be necessary to recover for the account of the United States all benefit amounts erroneousl­y paid and restore any lost or misapplied funds paid to the state for benefits or the administra­tion of the Agreement.” Do that, “and, in many instances, the state will not need to take retroactiv­e action to resolve monitoring findings.”

Under Su, California lost most of the CARES Act money to fraudsters, including internatio­nal crime gangs. And how will federal DOL officials know whether California took “such action as reasonably necessary to recover” those stolen billions?

Because California officials have told them so. Today, the state controller notes, California “is waiting on final federal approval of EDD’S request as indicated in the February 2024

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