Audit Finds Problems With State Tax Disbursements

A state audit finds the California Board of Equalization has misplaced tax revenue.

The board distributes a significant portion of state revenue, including sales and use taxes, to local governments and state funds. But the audit by the California Controller’s Office found the board has at times miscalculated the proper amounts.

Controller's Office press secretary John Hill says his agency decided to investigate when it noticed a fund growing abnormally.

"That was sort of a red flag to take a closer look at that," Hill says. "And the reason that fund was growing in ways that were unexpected was because it was receiving misallocated funds."

For instance, Controller press secretary John Hill says during the two years audited, the Board misplaced $48 million from the DMV that should have gone to local governments and paying off bonds. Instead, they went to the state's General Fund.

The Board of Equalization says it has corrected the errors, totaling $343 million. After the audit was published, board members called for more transparency and oversight.