The EDD racked up $4.6 million in fees for cellphones that no one uses

I’m CalMatters investigative editor Andrew Donohue, filling in for Lynn today.

The state Department of Employment Development acquired 7,224 cell phones and wireless hotspots during the pandemic so call center employees can work from home.

Then he forgot to cancel them after nobody used them.

As CalMatters editor Adam Ashton reportsthat’s how the agency — responsible for distributing benefits to millions of suddenly unemployed Californians during the pandemic — racked up $4.6 million in monthly service fees.

The details come from a new state audit detailing wasteful spending at several state agencies. Auditors began looking at cellphones after receiving a tip.

Department officials told auditors they were unaware of the spending, but auditors pointed to regular invoices from Verizon that showed which phones were not being used.

• The audit: “We would expect EDD management to reconsider the need to pay monthly service fees for so many devices that have not used voice, messaging or data.”

More about EDD: In the aftermath of the pandemic, we investigated EDD failures that left the state with the worst of both worlds: tens of billions of dollars lost to fraud, and workers who lost their financial stability, their homes or, in extreme cases, their lives. Read the entire series here.

More audits: Despite spending hundreds of millions of dollars to fill vacant medical and mental health positions in prisons and state hospitals, California has nothing to show for it. Kristen Huang reports.

From CalMatters political reporter Maya S. Miller:

A a recent survey of Latino voters in California finds that Republicans appear to be losing ground with a segment of the electorate that voted for former President Joe Biden in 2020 but whom President Donald Trump wooed in last year’s presidential election.

The findings from Latino advocacy group Tzunu Strategies and polling firm Tulchin Research provide one of the clearest indicators yet that the Republican Party may not be able to count on next year’s midterm elections in a key constituency that returned Trump to office.

But Arturo Carmano and Ben Tulchin, the survey’s architects, cautioned that Democrats should not yet view their findings as a “comeback” for their party. Instead, they stressed to leaders of both parties that Latinos care more about which candidates make them feel heard and valued than about party allegiance.

• Tulchin: “When (Latino voters) feel unheard or taken for granted, they can and will move. Parties can’t take their support for granted – they have to work for it.”

The study of 1,100 registered Latino voters in California — 100 of whom switched from Biden in 2020 to Trump in 2024 — also found that respondents had largely negative views of the economy and the influence of corporate power.

Nearly 70 percent of those polled said they believe U.S. immigration officials racially profile Hispanics, including 59 percent of Biden-to-Trump voters.

From CalMatters homelessness reporter Marissa Kendall:

Two homeless Californians are suing the city of Fresno, claiming an ordinance banning camping anywhere in the city is unconstitutional.

Fresno is one of several California cities to adopt anti-camping ordinances after the U.S. Supreme Court gave them the green light to do so in 2024.

The plaintiffs, Wickey TwoHands, 78, and Joseph Quinney, 52, were arrested on suspicion of breaching the camping ban last year. They are trying to challenge the ordinance in federal court on behalf of all homeless people in Fresno.

• The case: “The defendants have created a regime that punishes poverty, destroys private property without due process, and subjects vulnerable groups to arrest, harassment, and danger without providing adequate shelter alternatives or reasonable accommodations.”

Fresno’s answer? See you in the Supreme Court.

City Attorney Andrew Jantz: “I look forward to taking this case to the Supreme Court — this same Supreme Court confirm this type of regulation. Again, the municipal law passed by the Fresno City Council does not penalize housing status, only behavior.”

Last week, President Donald Trump issued an executive order that will likely hit California the hardest.

The order discourages state governments from regulating artificial intelligence and urges Congress to pass a law that protects against such regulations. California has passed more laws to regulate artificial intelligence than any other state since 2016. We are also home to many of the world’s leading AI companies.

As CalMatters reporter Carrie Johnson writessurveys show that AI regulations have broad public support.

In October, a survey found that nearly 80 percent of Californians strongly or somewhat agreed that safety should be a priority over AI innovation. A September poll found that four in five Americans want lawmakers to prioritize safety over innovation, even if it means technology moves more slowly.