A California state auditor found waste, mismanagement, and misuse of taxpayer money inside several state agencies, including the office of state Controller Malia Cohen, which is responsible for managing state finances and payroll. The investigation found that for over a year, senior officials in Cohen's office deliberately stalled the recovery of more than $33,000 in salary overpayments to two employees, canceling a required payroll deduction while considering an alternative plan to seek state payments on the employees' behalf. Officials never carried out that plan, and the auditor concluded that the office violated state law by failing to collect one employee's debt. The investigation also found that two managers worked remotely from Idaho, Tennessee, and Alabama despite rules restricting out-of-state telework. Across nine cases involving multiple state agencies, the auditor identified about $885,000 in wasted, misused, uncollected, or improperly spent public funds.

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California Gov. Gavin Newsom signed Assembly Bill 2222, creating tax incentives for news organizations. Under the law, eligible news organizations can receive a $20,000 tax credit for each of their first five journalists, $15,000 for each additional journalist and new hire, and $7,500 for eligible part-time journalists. Supporters say the program will help struggling newsrooms survive. Newsom said he approved the bill despite concerns that it could benefit wealthy owners, hedge funds, and media companies that do not need financial help. The program also has no spending cap and could create unlimited costs for taxpayers.

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