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Jon Coupal: Blue States Have a Fraud Problem

Calls grow for a full independent audit amid accusations of shoddy accounting and costly infrastructure delays driving California's $18 billion budget deficit.

  • This past week, California's budget shortfall rose to a projected $17 billion, prompting Gov. Gavin Newsom to rebuff claims of waste with `The Governor takes fraud seriously.`
  • Shoddy accounting tied to program expansions has worsened budget pressures, especially around taxpayer-funded healthcare to all illegal immigrants, straining state budgeting and accounting practices.
  • Oversight reviews point to gaps in how large programs were tracked as a state homelessness spending audit found unclear use of billions, while critics note $17,000,000,000 on the high-speed rail project yielded `16,000 union jobs` and `50+ COMPLETED projects` without the promised train.
  • Rep. Ro Khanna called for a `full independent audit of California's budget` while Newsom's social media team insisted `The Governor takes fraud seriously,` denying any hidden scandal.
  • The Minnesota fraud revelations refocused attention on states like California, where community colleges flagged roughly a third of enrollment applications as likely fraudulent in 2024 and early 2025.
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12 Articles

San Bernardino SunSan Bernardino Sun
+9 Reposted by 9 other sources
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Jon Coupal: Blue states have a fraud problem

There is a great deal of media attention over the state of Minnesota’s $9 billion (minimum) fraud problem. If this were a contest, California would say, “hold my beer.” While , the level of criminal fraud in Minnesota pales in comparison to the level of significant taxpayer rip offs here in California. And by fraud, we mean actual criminal activity over and above the baseline level of waste for which California is already famous.  Taxpayer advoc…

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Conservative Journal Review broke the news in on Friday, January 2, 2026.
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