California
Tough love plan could end California's unemployment insurance stalemate
When the Great Recession struck California 17 years ago and hundreds of thousands of workers lost their jobs, the state’s unemployment insurance system crashed.
The employer-financed program quickly exhausted its thin reserves, due to a short-sighted political decision six years earlier.
In 2001, the Unemployment Insurance Fund had a $6.5 billion positive balance. But the governor at the time, Democrat Gray Davis, owed big political debts to unions that financed his 1998 campaign. He repaid them by doubling unemployment insurance benefits, contending that the seemingly hefty reserve could cover them without raising payroll taxes on employers.
When recession struck, the insurance fund soon leaked red ink and the state borrowed about $10 billion from the federal government to maintain cash payments. When the state didn’t repay the loan, the feds raised payroll taxes for nearly a decade to retire the loan.
It should have been a lesson for political policymakers about instant gratification and financial responsibility, but it wasn’t.
Shortly after the $10 billion loan was paid off, California was hammered by the COVID-19 pandemic, and upwards of 3 million workers lost their jobs as the state ordered workplace closures.
Once again, the unemployment insurance program had virtually no reserves to cover the sharp increase in claims. Once again it borrowed from the federal government, this time for $20 billion, and once again its failure to repay forced the feds to increase payroll taxes.
In addition to a double dose of financial problems, the Employment Development Department has also experienced managerial failures.
In 2011 Elaine Howle, the state auditor, laid out the department’s shortcomings in a sharply worded report, but when the pandemic hit, they once again became evident. There were massive glitches in responding to legitimate claims for insurance benefits, while the department gave tens of billions of dollars to fraudsters.
Meanwhile employers are still repaying the last loan, and the state’s insurance fund is continuing to run deficits, unable to cover current benefits of nearly $7 billion a year.
With that history in mind, another watchdog agency, the Legislative Analyst’s Office, is urging a complete overhaul of unemployment insurance, declaring the system “is broken.”
Noting that the current state payroll tax cannot fully cover current benefits, much less build reserves, the LAO report projects a “perpetually outstanding federal loan” to keep payments flowing that must be repaid with interest.
The report proposes a four-part tough love approach to a crisis that has been building for more than two decades and cannot solve itself, to wit it advises the state to:
- Increase the taxable wage base from $7,000 per worker to $46,800, tying it to the actual benefits of up to $450 a week. It “would place California among the ten states with taxable wages bases above $40,000 and all other Western states.”
- Adopt two payroll tax rates, one to cover current benefits and another to rebuild reserves. The combined rate of 1.9% would be applied to the $46,800 wage base.
- Base employers’ tax rates on their changes in employment, thus imposing higher costs on employers that reduce their number of workers.
- Refinance the federal loan with a bond backed by payroll taxes and state loans from its internal sources to reduce overall interest costs.
There may be other alternatives, perhaps affecting benefits, but the main thing is that doing nothing will just perpetuate this crisis — even though the politics of the issue are daunting.
It’s been a political stalemate for nearly a quarter-century, pitting unions seeking to protect, or even increase, benefits against employers who don’t want to shoulder increased taxes. Successive governors and legislative leaders have shunned engagement, preferring to kick the can down the road.
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California
Republican governor candidate Chad Bianco says he’s the ‘antithesis to California state government’
We are counting down to the California governor’s race. Chad Bianco, the sheriff of Riverside County, is one of the two biggest names running on the Republican ticket.
In a one-on-one interview with Eyewitness News political reporter Josh Haskell, Riverside County Sheriff Chad Bianco said, “I am the antithesis to California state government because I am going to take a nuclear bomb into that building and absolutely destroy everything that they do to us behind closed doors.”
Although he’s been elected by the voters twice, Bianco says he’s not a politician — which is why he believes his campaign for California governor is resonating, as reflected in the polls.
“President Trump, in one year, from 2025 when he took over, until now, did absolutely nothing to harm California. What’s harming California is 30 years of Democrat one-party rule that have created an environment here that no one can live in anymore. They’ve only been successful here in California because we vote D no matter what. You vote D or die. I mean, that’s it. Charles Manson would be elected in California if he was the only Democrat on the ballot,” Bianco said.
Bianco isn’t the only conservative Republican running for governor, and according to polling, he’s neck-and-neck with former Fox News host Steve Hilton.
SEE ALSO: CA governor candidate Steve Hilton says ‘everybody supports’ Trump’s immigration policies
Leading in some polls in the wide-open California Governor’s race as the June primary creeps closer is Republican and former Fox News host Steve Hilton.
“Steve has no chance of winning in November. The Democrats know that I’m going to win in November, and so they have to do everything they can to keep me out of that,” Bianco said.
When asked about the affordability crisis in the state, Bianco said, “Almost the entire issue of affordability in California is because of regulation, excessive regulation imposed by government. Every single regulation can be signed away with the governor’s signature.”
“It is a drug and alcohol addiction problem that, and a mental health problem,” he said about the homelessness crisis. “Every single bit of money that is going to these nonprofits that say ‘homeless,’ zero money. You’re getting absolutely nothing. I can’t tell you that we would end what we see in the homeless situation within a year, but I guarantee you we would never see it again after two years.”
When challenged on that prediction, pointing to how the state doesn’t have the facilities to treat the number of people living on our streets, Bianco responded, “We have been conditioned to believe that buildings take five years to build. It takes 90 days or less to build a house, but in California, it takes three to five years because the government won’t allow it. The regulations that are destroying this state are going to be removed with me as the governor.”
Bianco also said California jails shouldn’t have to play the role of treatment facilities.
Although he says he supports the Trump administration and wants the president’s endorsement, Bianco has been traveling the state — meeting not just with Republicans, but Democrats and independents as well. He says all of our state government officials have failed.
The primary election is June 2.
No clear front-runner in race for California governor, new poll shows
A new poll shows there’s still no clear front-runner in the race to replace Gov. Gavin Newsom.
Copyright © 2026 KABC Television, LLC. All rights reserved.
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California
PlayOn Sports fined $1.1 million by California watchdog over student data violations
SACRAMENTO, Calif. (FOX26) — California’s privacy watchdog has ordered PlayOn Sports to pay a $1.10 million fine and change how it handles consumer data after finding the company’s practices violated state law in ways that affected students and schools in the state.
The California Privacy Protection Agency Board issued the decision following a settlement reached by CalPrivacy’s Enforcement Division.
The decision is the first by the board to address privacy violations involving students and California schools.
Schools across the country use PlayOn Sports’ GoFan platform to sell digital tickets to high school sporting events, theater performances, and homecoming and prom dances, with attendees presenting tickets at the door on their mobile phones.
Schools also use PlayOn Sports’ platforms for other sports-related activities, including attending games, streaming them online, and looking up statistics about teams and players.
In California, about 1,400 schools contract with PlayOn Sports for these services.
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GoFan is also the official ticketing platform for the California Interscholastic Federation, the governing body for high school sports.
According to the board’s decision, PlayOn Sports used tracking technologies to collect personal information and deliver targeted advertisements to ticketholders and others using its services.
The company allegedly required Californians to click “agree” to tracking technologies before they could use their tickets or view PlayOn Sports websites, without providing a sufficient opt-out option.
“Students trying to go to prom or a high school football game shouldn’t have to leave their privacy rights at the door,” said Michael Macko, CalPrivacy’s head of enforcement. “You couldn’t attend these events without showing your ticket, and you couldn’t show your ticket without being tracked for advertising. California’s privacy law does not work that way. Businesses must ensure they offer lawful ways for Californians to opt-out, particularly with captive audiences.”
The decision also describes students as a uniquely vulnerable population and warns that targeted advertising systems can subject students to profiling that can follow them for years, expose them to manipulative or harmful content, and develop sensitive inferences about their lives.
Instead of providing its own opt-out method, PlayOn Sports directed students and other users to opt out through the Network Advertising Initiative and the Digital Advertising Alliance, which the decision said violated the company’s responsibility to provide its own way for consumers to opt out. The company also allegedly failed to recognize opt-out preference signals and did not provide Californians with sufficient notice of its privacy practices.
“We are committed to making it as easy as possible for all Californians — from high school students to older adults, and everyone in between — to make the choice of whether they want to be tracked or not,” said Tom Kemp, CalPrivacy’s executive director. “Californians can opt-out with covered businesses, and they can sign up for the newly launched DROP system to request that data brokers delete their personal information.”
Beyond the $1.10 million fine, the board’s order requires PlayOn Sports to conduct risk assessments, provide disclosures that are easy to read and understand, and implement proper opt-out methods.
The order also requires the company to comply with California’s privacy law prohibiting the selling or sharing of personal information of consumers between 13 and 16 without their affirmative opt-in consent.
California
California bill to bar police from taking second job with ICE advances in state Assembly
Wednesday, March 4, 2026 4:43AM
SACRAMENTO, Calif. (KABC) — A bill that would prevent police officers from moonlighting with federal immigration enforcement agencies, such as U.S. Immigration and Customs Enforcement, is advancing through the California State Assembly.
AB 1537 passed the State Assembly’s committee on public safety on Tuesday.
The bill also requires that officers report any offers for secondary employment related to immigration enforcement to their place of work.
Those failing to comply could face decertification as a peace officer in California.
The bill was introduced by Assemblymember Isaac Bryan, whose district includes Mar Vista, Ladera Heights, Mid-Wilshire and parts of South Los Angeles.
Copyright © 2026 KABC Television, LLC. All rights reserved.
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