Now we find out that the agency getting the illegal taxed funds hid money—so they could plead poverty to get the State to create an illegal tax. Chicago would be proud of Jerry and his cronies.
“However, a revelation that is sure to add fuel to the flames is Cal Fire hid $3.6 million from legal settlements so that it wouldn’t have to fork over the funds to the state’s general fund. The LA Times reports: “For seven years, Cal Fire placed the money with the nonprofit California District Attorneys Assn., paying the group to hold it. Cal Fire used the cash for equipment purchases and training purposes. The practice ended last year amid questions about whether the fund was legal.”
It appears that Cal Fire officials knew about the problems the hidden funds could present as far back as 2008.”
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Another State Agency Uses Hidden Account to Keep Money from State; Cal Fire Records
California County News, 1/30/13
When Governor Brown pushed forward the $150 fire fee, he claimed the state didn’t have the money to handle its duties in fire-prone sections of the state, which are known as State Responsibility Areas. Backlash was significant as the state has levied a fee on rural homeowners to cover fire-prevention services in areas that in many cases already tax themselves to provide such a service locally.
However, a revelation that is sure to add fuel to the flames is Cal Fire hid $3.6 million from legal settlements so that it wouldn’t have to fork over the funds to the state’s general fund. The LA Times reports: “For seven years, Cal Fire placed the money with the nonprofit California District Attorneys Assn., paying the group to hold it. Cal Fire used the cash for equipment purchases and training purposes. The practice ended last year amid questions about whether the fund was legal.”
It appears that Cal Fire officials knew about the problems the hidden funds could present as far back as 2008.
While the Department of Finance is planning an investigation, the hidden funds are yet another example of state agencies having secret funds. For example, there was outrage in the summer when it was revealed that the state Department of Parks and Recreation hid $20 million at the same time many parks were slated for closure.
Consequently, questions remain about to what extent other agencies are keeping funds off state books. A joint Assembly and the state Senate committee will conduct a hearing to look into the matter. See more here and here.
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