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AUDITOR BOMBSHELL: CALIFORNIA DECLARED ‘HIGH-RISK’ AS NEWSOM LEGACY GOES UP IN FLAMESCalifornia’s books are a mess — and the State Auditor just made it official.In a scathing new report, the California State Auditor slapped Governor Gavin Newsom and eight state agencies with the dreaded “HIGH-RISK” label, citing waste, fraud, abuse, and chronic mismanagement that could leave taxpayers on the hook for billions.The warning is blunt: the next governor inherits a disaster.$2.5 BILLION FOOD STAMP FAILUREThe California Department of Social Services was newly added to the high-risk list after bungling CalFresh eligibility so badly that federal law may force California to pay up to $2.5 billion a year to cover benefit errors. Payment mistakes have hovered near 11%, triggering massive penalties.EDD STILL BLEEDING CASHThe Employment Development Department remains high-risk years after pandemic fraud scandals. Auditors say improper payments continue, fraud controls are weak, and claimants still struggle to get paid or reach anyone for help.COVID CASH CHAOSCalifornia received $285 billion in federal COVID funds — and mishandled much of it. Auditors found poor planning, unjustified spending, and $820 million that expired unused. Dozens of reform recommendations remain ignored.BOOKS LATE, CREDIT AT RISKThe Department of Finance and State Controller were blasted for chronically late financial reports — a failure that could raise borrowing costs and make statewide bond debt more expensive for taxpayers.MEDI-CAL & TECH FAILURESAuditors flagged billions in questionable Medi-Cal payments and ongoing cybersecurity weaknesses that leave state data exposed.WATER SYSTEM ON THE EDGEAging dams and failing infrastructure threaten lives and water supplies. Forty-nine dams are rated extremely high hazard, with capacity projected to fall sharply by 2043.BOTTOM LINETo be labeled “high-risk,” agencies must show serious waste or mismanagement — and California did it across the board.The auditor’s message: Fix it fast, or the free ride is over.