Assemblymember Gray Calls for Examination of State Agencies’ Hidden Funds

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Created on Monday, 28 January 2013 14:05

SACRAMENTO –Assemblymember Adam C. Gray (D-Merced), Chair of the Joint Legislative Audit Committee (JLAC), announced today that the committee will hold a hearing to begin the examination of the prevalence and use of state accounts that are held outside the public treasury. Gray’s announcement came after it was revealed that yet another department within state government hid millions of dollars from the public.

“It is outrageous that public entities have apparently long seen fit to play shell games with the public’s money,” said Assemblymember Gray. “If a private sector company treated people’s money the same way, somebody would be behind bars.”

Californians recently learned that the Department of Forestry and Fire Protection established a fund wherein public money was held by the California District Attorneys Association for a total fee of 18 percent or more. 

“It needs to be determined what benefit the state received paying the California District Attorneys Association this fee.  And if it is not clear how the California District Attorneys Association helped Californians, then that money needs to go back into the public treasury,” said Gray.

If this inquiry of off-budget accounts reveals the rampant misuse of these types of funds, Gray said he will call for a full audit and introduce legislation prohibiting the practice.

“Uncovering and shedding light on these practices is a good first step, said the Assemblymember.  “The next step is to take strong action to prevent such behavior in the future.”

Assemblymember Adam C. Gray represents the 21st Assembly District which includes all of Merced County and portions of Stanislaus County.

Contact: Brendan P. Hughes, (916) 319-2021