State auditor blasts California unemployment agency for glaring blunders

SAN FRANCISCO, CA - NOVEMBER 09: A job seeker holds an organizer with an American flag sticker on it as he waits in line to meet with a recruiter during the San Francisco Hire Event job fair on November 9, 2011 in San Francisco, California. The national unemployment rate dipped this past month to 9 percent in October after employers added 80,000 jobs. (Photo by Justin Sullivan/Getty Images)

California's Employment Development Department has been slammed for missing out on over 500 million dollars in revenue. In a new report, the state auditor described the beleaguered department as "appalling" after it ignored federal assistance to help recover millions in overpaid unemployment benefits.

California's Employment Development Department has been slammed for missing out on over 500 million dollars in revenue. In a new report, the state auditor described the beleaguered department as "appalling" after it ignored federal assistance to help recover millions in overpaid unemployment benefits.

EDD officials told auditors they lacked the manpower and finances to make necessary software upgrades in order to join the Treasury Offset program in February 2011. Yet a whistleblower informed the auditor's office that EDD would have needed just 323 thousand dollars in staff time to make the changes.

This comes amid calls from California lawmakers to explain why the EDD is denying so many unemployment insurance claims. What issues have you had with the EDD? How long has it taken you to deal with a claim?

Guest:

Marc Lifsher, business reporter in the Sacramento bureau at the Los Angeles Times.