LOS ANGELES--When the State of California, began to distribute the i.o.u. in 2009 due to a shortage of liquidity, taxpayers have been aghast predictable. But few knew at the time that even if the notes pay you later kept out, State agencies have been also distributing millions of dollars in loans without interest as salary and travel advances to employees without reimbursement of collection.
Now, with the State budget with a deficit of 26.5 billion devastating, Governor Jerry Brown is demanding that the bodies immediately cease the practice and determine how many employees of money with unpaid loans owed to the State.
The State controller began to study the practice two years ago and has issued several checks on the practice. In 2009, for example, an audit revealed that 11 bodies had more than 13 million dollars in outstanding loans. In many cases, the agencies had not collected on all loans.
"The situation reinforces the stereotype worst Government inefficient and ineffective", Mr. Brown said in a statement with the Decree published Wednesday. He said that he was ordered to all agencies of the State "immediately investigate the backlog of unpaid and find every penny to taxpayers."
Executive order at the time where Mr. Brown is struggling to get its own budget approved by the Legislative Assembly. He said repeatedly that he wants to go to the voters have approved tax extensions, but so far, he has been unable to obtain the support of a handful of Republicans.
At the same time, Mr. Brown is eager to show that he is aggressively on waste. So far this year, he issued decrees cutting the fleet of the State and the State employee phones cellular as well as banning the dispersal of the promotional items such as the keyrings.
Under the Act of the State, employees are able to receive the progress of the difficulties of their cheques and pay for a trip of an employment agency discretionary fund. But many organizations not followed regulations of the State in taking money from paychecks of employees. After three years, the money may not be collected without the consent of the employee.
"Collection of bad debt and accounting practices of the State are scamming public coffers at a time when vital public programs are being decimated by unprecedented budget cuts," the State controller John Chiang said Wednesday.
Administration officials expect that there are millions of dollars more loans outstanding have not been accounted for. So far, the State is not known how much money is salary advances which must have been repaid and how much is travel which were not recorded expenses.
Other amounts owed to the State also went non-paid. For example, an audit of the California Highway Patrol, State officials concluded that the Agency had not collected money from people who have been found guilty of drunk driving and the obligation to reimburse the State of the investigation.
Each of the audited agencies has now promised to harden its accounting procedures and submit all accounts offenders in the Office of the controller, so that money can be collected and refunded to the State General Fund.
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